Eli Lilly has agreed to acquire AtaiBeckley for up to $3.8bn, gaining control of BPL-003, a synthetic version of the psychedelic compound 5-MeO-DMT, best known for its association with Colorado River toad venom.
The deal marks the largest investment by a major pharmaceutical company in psychedelic medicine to date, signalling a growing confidence in the emerging field.
The asset
The asset, BPL-003, is a single-dose nasal spray for treatment-resistant depression (TRD). Administered under clinical supervision, the treatment produces a short psychedelic experience that typically lasts around two hours.
In a phase 2b trial, a single dose produced rapid and durable improvements in patients with TRD – a population for whom conventional antidepressants often fail to provide adequate relief.
The therapy has also received FDA Breakthrough Therapy designation, and phase 3 development is already underway, giving it a strong chance of eventually reaching the market.
Srinivas Rao, CEO, AtaiBeckley, said the deal validates the company’s strategy of developing novel therapies that address psychiatric disease “at its biological root, not just its symptoms”.
Are psychedelic medicines gaining momentum?
The acquisition reflects a sharp reversal in fortunes for the psychedelic medicine sector.
Less than two years ago, the sector’s prospects were thrown into doubt after the FDA declined to approve Lykos Therapeutics’ MDMA-assisted therapy for post-traumatic stress disorder, raising questions about the regulatory pathway for psychedelic medicines.
Nevertheless, optimism appears to be returning following two positive phase 3 readouts from Compass Pathways’ psilocybin programme this year, reinforcing the view that psychedelic therapies can meet the efficacy and safety standards required for regulatory approval.
Competitors in the space
Looking ahead, Lilly’s acquisition positions the company in what is shaping up to be an increasingly competitive market for next-generation depression therapies.
Alongside late-stage psychedelic programmes from Compass, GH Research and Otsuka, Johnson & Johnson’s esketamine has already established a commercial foothold, with approvals for TRD in more than 77 countries since its 2019 launch.
Featured image: Milan on Adobe Stock
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