The GLP-1 leader expands into psychedelics

Eli Lilly is in the market for some DMT and ecstasy. The pharmaceutical giant said yesterday that it will acquire psychedelic drugmaker AtaiBeckley for $2.8 billion, gaining access to its line of experimental mental health therapies.Lilly will tack another $1 billion onto that price if AtaiBeckley’s drugs hit certain milestones. The upstart’s pipeline includes:Its lead drug, BPL-003, a DMT-based nasal spray for treatment-resistent depression. It’s shown promising results in mid-stage trials, and it was recognized as a Breakthrough Therapy by the FDA last fall.An oral drug for social anxiety disorder that contains a molecular structure found in MDMA (aka ecstasy).Full circle: Before it became known for Mounjaro and Zepbound, Lilly’s last major growth spurt came from its antidepressant Prozac, released ~40 years ago. In an interview with CNBC, Lilly’s chief scientific officer compared the stigma around mental health treatment at that time to current stigma around psychedelic therapy.But the regulatory environment is getting friendlier—the FDA fast-tracked psychedelic drug research earlier this year. Shares of AtaiBeckley had already more than doubled over the past year before the acquisition news.Shopping spree: Lilly has said it would spend up to $25 billion on acquisitions this year. Other recent purchases include companies in vaccine development, cancer treatment, and sleep medication.—ML