ATAI Life Sciences BV (NASDAQ:ATAI) shares surged 18.6% following the announcement that the company will merge with Beckley Psytech in a strategic move to create a global leader in psychedelic mental health therapies. The all-share transaction, which is expected to close in the second half of 2025, will see the combined entity operate under the name atai Beckley, leveraging the expertise of both companies in the development of central nervous system (CNS) drugs and psychedelic therapies.
The market reacted positively to the news, which promises to establish a market-leading company with a pipeline that includes potentially transformative, rapid-acting psychedelic assets. These assets are differentiated by their convenient route of administration and short time required in a clinical setting. The merger is anticipated to bring financial synergies and a strong intellectual property portfolio with U.S. patents extending to 2043.
Investors are particularly interested in the forthcoming topline data from the Phase 2b study of BPL-003 in patients with treatment-resistant depression (TRD), expected in mid-2025. This study represents the largest controlled trial of mebufotenin (5-MeO-DMT) and the first of its kind to be conducted in the U.S. The results could be a significant value inflection point for the company, with the potential to impact the treatment of TRD.
The merger’s financial details reveal that Beckley’s shareholders will receive approximately 105 million new shares, which equates to about 31% of the combined company on a fully diluted basis. This values Beckley at approximately $390 million. Furthermore, the deal includes a concurrent $30.0 million private placement by Ferring Ventures S.A. and Adage Capital Partners LP, which is set to close on June 3, 2025, and is not contingent on the merger’s completion.
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