Eli Lilly is in advanced negotiations to acquire psychedelic drugmaker AtaiBeckley in a deal valued at approximately $1.97 billion, according to reports citing people familiar with the matter.
The agreement could be announced as early as this week, signaling a rapid acceleration in Lilly’s efforts to diversify beyond its dominant position in weight-loss and diabetes treatments.
AtaiBeckley shares jumped sharply in trading following the news, reflecting investor enthusiasm for the potential premium and the strategic fit.
The acquisition would allow Lilly to integrate emerging therapies for depression and other mental health conditions into its broader pharmaceutical portfolio, leveraging its established commercial infrastructure.
The move underscores a broader trend among large-cap pharmaceutical companies seeking growth avenues beyond blockbuster chronic-disease drugs.
While Lilly remains the market leader in GLP-1 agonists, competition in the obesity space is intensifying, prompting the company to explore adjacent therapeutic areas with high unmet medical needs.