Eli Lilly has agreed to acquire the mental health biopharmaceutical company AtaiBeckley in a deal valued initially at $2.8 billion, with potential additional payments raising the total value to $3.8 billion. The Indianapolis-based drugmaker announced on Thursday that it will pay $6.75 per share in cash, representing a 26% premium over AtaiBeckley’s closing price of $5.36 on Wednesday. The acquisition is expected to close in the third quarter of 2026.

The transaction also includes contingent value rights worth up to $1 billion, or $2.50 per share, which are linked to the progress of AtaiBeckley’s pipeline of mental health therapeutics. Among these is BPL-003, a nasal spray formulation of synthetic 5-MeO-DMT, a psychedelic compound targeted at treating depression that is resistant to other therapies. Eli Lilly highlighted that the deal will enhance its neuroscience portfolio as it expands into innovative psychiatric treatments.

AtaiBeckley’s shares surged 33% to close at $7.15 on the Nasdaq following the announcement. The company had previously seen gains earlier in the year, particularly after a presidential executive order aimed at accelerating research into psychedelic-based therapies for mental illness was signed in April.

This acquisition represents the latest in a series of purchases by Eli Lilly as it seeks to diversify its drug offerings beyond its highly profitable weight-loss medications. In May, the company agreed to buy three vaccine developers for a combined total approaching $4 billion in a strategic move to increase its infectious disease capabilities. Earlier deals in 2026 involved acquisitions of biopharmaceutical firms specializing in cancer, sleep, genetic medicine, and blood disorders, including Kelonia Therapeutics, Ajax Therapeutics, Centessa Pharmaceuticals, Orna Therapeutics, and Ventyx Biosciences.

Eli Lilly’s recent activity underscores a broad push to expand its research and development pipeline across multiple therapeutic areas amid a competitive pharmaceutical landscape.