ATAI Life Sciences BV (NASDAQ:ATAI) experienced an 18.6% surge in its stock price after announcing a planned merger with Beckley Psytech, a strategic move aimed at forming a global leader in psychedelic-based mental health treatments. The all-stock deal, expected to close in the latter half of 2025, will result in a combined company named atai Beckley, uniting the strengths of both firms in developing central nervous system (CNS) drugs and innovative psychedelic therapies.
The market responded favorably to the merger, which is expected to create a frontrunner in the psychedelics sector, boasting a pipeline of potentially transformative compounds that offer rapid therapeutic effects and convenient administration methods suitable for clinical use. The deal is projected to deliver financial synergies and a robust portfolio of intellectual property, including U.S. patents extending through 2043.
Investor attention is particularly focused on the upcoming topline results from the Phase 2b trial of BPL-003 in patients with treatment-resistant depression (TRD), slated for mid-2025. This study represents the largest controlled trial of mebufotenin (5-MeO-DMT) in the United States and could be a pivotal moment for the company’s future growth.
Under the terms of the agreement, Beckley’s shareholders will receive about 105 million new shares, representing roughly 31% of the merged entity on a fully diluted basis, valuing Beckley at around $390 million. Additionally, the merger includes a $30 million private placement led by Ferring Ventures S.A. and Adage Capital Partners LP, scheduled to close on June 3, 2025, independent of the merger completion.
ATAI’s strategic investment in Beckley, which began in January 2024, has paved the way for this merger, with the shared goal of accelerating the development and market introduction of new mental health therapies. The combined entity aims to deliver substantial long-term value to shareholders and meaningful advancements for patients.
The merger has received approvals from both atai’s Supervisory and Management Boards and Beckley’s Board of Directors. Final shareholder approval from atai and other customary closing conditions are still pending.