Eli Lilly to acquire a psychedelic drugmaker for $2.8B

Eli Lilly is making a major move in mental health care by buying psychedelic drug developer AtaiBeckley in a deal worth $2.8 billion.

The acquisition strengthens Lilly’s efforts to develop faster and more effective treatments for people with depression who do not respond to existing medicines.

The deal brings BPL-003, an experimental nasal spray based on the psychedelic compound DMT, into Lilly’s pipeline. Patients receive the treatment in a medical clinic under close supervision.

The drug is now in Phase 3 clinical trials, with the first results expected in 2029.

Unlike traditional antidepressants that often take weeks to work, researchers hope BPL-003 can deliver quicker and longer-lasting relief by helping the brain build new neural connections. If successful, patients may need only a few treatments each year.

Lilly is also prepared to pay up to $1 billion in additional milestone payments if AtaiBeckley’s drugs meet development and regulatory goals. 

The acquisition highlights growing confidence in psychedelic-based therapies for depression, post-traumatic stress disorder, and other serious mental health conditions.

In April, President Donald Trump signed an executive order boosting federal research into psychedelics, like ibogaine, psilocybin, LSD, and MDMA, and expanding access to these substances in controlled therapeutic settings.