AtaiBeckley (NASDAQ:ATAI) shares jumped as much as 53% in premarket trading on Thursday after reports emerged that Eli Lilly (NYSE:LLY) is in discussions to acquire the psychedelic drug developer.
Potential deal would broaden Lilly’s neuroscience portfolio
According to BMO Capital Markets analyst Evan David Seigerman, an acquisition of AtaiBeckley would strengthen Eli Lilly’s presence in psychiatry while supporting its strategy of expanding beyond its established cardiometabolic business.
“While Lilly has significantly increased its commercial development activity across several therapeutic areas, AtaiBeckley would provide differentiated exposure to psychiatry and strengthen the company’s broader commitment to diversifying beyond its core cardiometabolic franchise,” Seigerman said.
Late-stage pipeline could add strategic value
Seigerman noted that the proposed transaction could provide Eli Lilly with a differentiated late-stage neuropsychiatric programme, while also expanding its broader development pipeline.
The analyst highlighted VLS-01, which is being developed for treatment-resistant depression, and EMP-01, a potential therapy for social anxiety disorder, as additional assets that could enhance Lilly’s long-term neuroscience portfolio if a deal is completed.
The companies have not publicly confirmed any agreement, and discussions remain subject to the outcome of ongoing negotiations.
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