Investing.com -- Shares of psychedelic drug developers are surging premarket on Thursday after Eli Lilly announced a definitive agreement to acquire AtaiBeckley Inc., validating the sector and lifting sentiment across the space.
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Both ATAI and CMPS stocks were among the top trending on Stocktwits in pre-market trade.
Eli Lilly has struck a deal to buy mental-health-focused AtaiBeckley for an initial $2.8 billion, continuing the drugmaker’s recent buying spree.
Eli Lilly has struck a deal to buy mental-health-focused AtaiBeckley for an initial $2.8 billion, continuing a recent buying spree. Eli will pay $6.75 a share in cash for the biopharma company, a 26% premium to yesterday's closing price of $5.
The deal gives Lilly access to a DMT-based nasal spray for treatment-resistant depression that has received FDA Breakthrough Therapy Designation
The radiopharma specialist will use earnings from this mega-round to progress ADVC001 and build manufacturing infrastructure to prepare for potential commercialisation.
GH Research (NASDAQ:GHRS) shares climbed around 12% in premarket trading on Thursday after reports that Eli Lilly (NYSE:LLY) is in discussions to acquire psychedelic drug developer Atai Life Sciences (NASDAQ:ATAI), a development that sparked renewed investor interest across the sector. Potential acquisition lifts sentiment across psychedelic drug developersThe reported takeover talks sent Atai shares soaring by as much as 53% before the opening bell, with investors speculating that increased pha
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 portfolioAccording 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.
Psychedelic drugmaker AtaiBeckley was surging 50% ahead of the open Thursday following a report that pharma giant Eli Lilly is nearing a deal to buy the company . A deal, being negotiated at a premium, could be announced as early as this week, Bloomberg reported, citing people familiar with the matter. The shares jumped 22% in a single day in April when President Donald Trump signed a directive to accelerate the Food and Drug Administration’s review of psychedelic drugs for serious mental illnesses.
Faced with the dual pressures of shifting consumer habits and emerging health trends, General Mills finds itself in a challenging market position.
VC Magnus Sigurdsson said a rival bidder is unlikely after AtaiBeckley’s months-long structured sale process.
Eli Lilly is nearing an agreement involving AtaiBeckley, Bloomberg reported on Wednesday, citing people familiar with the matter.
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The milestone payment strengthens VivoSim’s cash position while management projects significant revenue growth driven by expanding demand for its human-based preclinical testing platform. Key Investor TakeawaysVivoSim (NASDAQ:VIVS) received a $5 million milestone payment from Eli Lilly tied to the advancement of a previously sold drug candidate into Phase 2 studies.
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Since its obesity pill Foundayo hit the market in April, Lilly has captured about 11% of the prescription volume for new pills, according to the latest weekly data. Novo Nordisk’s Wegovy pill, which launched in January, commands the rest. It is a remarkable turn of events for the near $80 billion anti-obesity market, among the hottest in the industry.
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