Eli Lilly Buys AtaiBeckley for $2.8 Billion as Target Stock Jumps 33%
Updated
Updated · CNBC · Jul 16
Eli Lilly Buys AtaiBeckley for $2.8 Billion as Target Stock Jumps 33%
3 articles · Updated · CNBC · Jul 16
Summary
$2.8 billion is the price Eli Lilly agreed to pay for psychedelic drugmaker AtaiBeckley, sending AtaiBeckley shares up 33% in midday trading while Lilly gained more than 2%.
$6.75 a share in cash values the deal at a 26% premium to AtaiBeckley’s Wednesday close of $5.36, with Lilly also offering up to $2.50 a share more if drug milestones are met.
GH Research climbed 12% after the announcement, suggesting investors expect Lilly’s move to lift sentiment across psychedelic-drug developers.
The acquisition stood out among sharp earnings-driven stock moves Thursday, including 11% gains for Abbott and 4% for UnitedHealth after both raised outlooks.