Eli Lilly Acquires ATAI for $6.75 Per Share; ATAI and CMPS Stocks Surge

Eli Lilly announced on Thursday it will acquire AtaiBeckley Inc. for $6.75 per share in cash, with additional milestone payments of up to $2.50 per share tied to development and regulatory achievements for ATAI's two lead depression programs. The deal, expected to close in Q3 pending shareholder and regulatory approval, strengthens Lilly's neuroscience pipeline with two late-stage programs targeting treatment-resistant depression. ATAI stock jumped over 33% in pre-market trade on Thursday, while shares of Compass Pathways also gained more than 7%. The acquisition comes amid regulatory momentum for psychedelic therapies following President Donald Trump's executive order in April directing the FDA to fast-track review of psychedelic drugs with Breakthrough Therapy designation.

Eli Lilly Acquires ATAI for $6.75 Per Share Plus Milestone Payments

Lilly stated it will acquire all outstanding ATAI shares for $6.75 per share in cash at closing, plus up to $2.50 per share tied to future development and regulatory milestones for ATAI's two lead programs, bringing total potential value to as much as $9.25 per share. Based on ATAI's Wednesday close of around $5.36, the $6.75 per share cash offer represents a premium of approximately 25.9%. Taking total potential consideration of $9.25 into account, the premium to Wednesday's close would be approximately 72.6%. The deal is expected to close in Q3, pending shareholder and regulatory approval.

ATAI Stock Jumps 33% in Pre-Market Trade on Thursday

ATAI stock historical performance vs. pre-market on July 16. | Source: TradingView

ATAI stock jumped over 33% in pre-market trade, paring gains from a jump of around 60% earlier in the day. If pre-market gains hold, ATAI's stock is on track to hit its highest levels since December 2021 and mark the biggest single-day jump in the company's history. LLY's stock was also among the top trending tickers on Stocktwits, edging higher by around 0.4% in pre-market trade.

ATAI stock historical single-day stock price changes. | Source: Koyfin

ATAI's Lead Asset BPL-003 Enters Phase 3 Activities

ATAI's lead asset is BPL-003, an intranasal, synthetic form of 5-MeO-DMT for treatment-resistant depression that has already earned FDA Breakthrough Therapy Designation and entered Phase 3 activities, following a Phase 2b study showing rapid and durable symptom reduction after a roughly two-hour in-clinic session. Its second program, VLS-01, is a buccal film formulation of DMT currently in Phase 2b. Carole Ho, Lilly Neuroscience's president, said treatment-resistant depression persists even after multiple treatments have failed. ATAI co-founder and CEO Srinivas Rao said the deal gives the company's pipeline the resources and scale to move faster than it could independently.

Compass Pathways Stock Gains 7% in Pre-Market Trade

CMPS stock gained more than 7% in pre-market trade. ATAI has historically been Compass's largest shareholder, though its stake has fallen from a peak of roughly 29% to 4.96% as of a February 2026 filing, dropping it below the 5% threshold requiring continued disclosure of its position.

FDA Announces Public Hearing and Publishes Clinical Guidance on July 14

Regulatory momentum for psychedelic therapies has been building steadily since President Donald Trump signed an executive order in April directing the FDA to fast-track review of psychedelic drugs with Breakthrough Therapy designation. Earlier this week, the FDA announced a public hearing on psychedelic therapies and published final clinical guidance for developers on July 14. The Department of Health and Human Services and the Department of Veterans Affairs also announced a new collaboration in anticipation of the first investigational drug approvals.

Retail Sentiment Around ATAI Stock Rises to Extremely Bullish

ATAI stock retail sentiment on July 16 as of 7:30 a.m. ET | Source: Stocktwits

Retail sentiment around ATAI stock on Stocktwits rose to extremely bullish from bullish territory over the past day. Chatter stayed at extremely high levels. Meanwhile, sentiment around CMPS stock fell to neutral from bullish territory, accompanied by chatter at high levels. Retail traders on the platform expressed excitement about what the takeover could mean for AtaiBeckley's future growth.

Wall Street Analysts Rate ATAI and CMPS as Strong Buy or Buy

ATAI's stock carries a Strong Buy rating from two analysts, and a Buy rating from 12 out of the 14 analysts covering the stock, according to Koyfin data. The average price target for the shares is around $14.17, and a trailing one-year return of about 102%. Wall Street was similarly bullish on Compass as well. CMPS Stock carries a Strong Buy rating from three analysts and a Buy rating from 12 out of the 15 analysts covering the stock. The average price target for the shares is around $24.47, implying a roughly 84% potential upside from Wednesday's close.

Neither company currently generates meaningful revenue. Compass has posted essentially $0 in quarterly sales across every quarter tracked since early 2025, reflecting its status as a clinical-stage company with no approved products yet. Consensus estimates project continued losses, including a projected adjusted loss of $0.31 per share for the quarter ending June 30. ATAI shows a similar profile, with quarterly sales in the range of just $0 to $2 million and a projected adjusted loss of $0.11 per share for the same period.

CMPS stock vs. ATAI stock performance year-to-date. | Source: Koyfin

Over the past year, Compass has significantly outpaced ATAI since mid-April, gaining nearly 93% year-to-date versus ATAI's roughly 31%. Unlike ATAI, which will now become part of Eli Lilly, Compass remains an independent, publicly traded company focused on developing psychedelic therapies for treatment-resistant mental health conditions.

FAQ

What did Eli Lilly announce on Thursday regarding ATAI?

Eli Lilly announced on Thursday it will acquire AtaiBeckley Inc. for $6.75 per share in cash, with additional milestone payments of up to $2.50 per share tied to development and regulatory achievements for ATAI's two lead depression programs. The deal is expected to close in Q3, pending shareholder and regulatory approval.

Why did Compass Pathways stock rise in pre-market trade?

CMPS stock gained more than 7% in pre-market trade. ATAI has historically been Compass's largest shareholder, though its stake has fallen from a peak of roughly 29% to 4.96% as of a February 2026 filing. CMPS shares are also riding regulatory momentum for psychedelic therapies following President Donald Trump's executive order in April directing the FDA to fast-track review of psychedelic drugs with Breakthrough Therapy designation.

What regulatory actions did the FDA take on July 14?

Earlier this week, the FDA announced a public hearing on psychedelic therapies and published final clinical guidance for developers on July 14. The Department of Health and Human Services and the Department of Veterans Affairs also announced a new collaboration in anticipation of the first investigational drug approvals.