atai Life Sciences (NASDAQ:ATAI) and Beckley Psytech have announced a definitive agreement to merge in an all-share transaction valued at $390 million, creating what the companies describe as a market-leading mental health company focused on rapid-acting psychedelic therapies. The merger is contingent upon achieving pre-agreed success criteria in Beckley's ongoing Phase 2b trial of BPL-003 (mebufotenin benzoate).
The combined entity will operate under the name atai Beckley, bringing together the psychedelic, drug development, and central nervous system expertise of both organizations. Under the transaction terms, atai will acquire the remaining shares of Beckley that it does not already own by issuing approximately 105 million new shares to Beckley's existing shareholders, representing about 31% of the combined company on a fully diluted basis.
Strategic Pipeline and Clinical Milestones
The merger aims to establish a synergistic pipeline of proprietary, rapid-acting psychedelic compounds differentiated by their convenient route of administration and short time-in-clinic. A key near-term milestone for the new company is the anticipated topline data readout from the eight-week, randomized core stage of Beckley's Phase 2b study of BPL-003 in patients with treatment-resistant depression, with results expected mid-year 2025.
"The strategic combination marks a transformational moment, solidifying us as a leader in rapid-acting and accessible psychedelic treatments for mental health conditions with a pipeline of potential first-in-class and best-in-class assets," stated Dr. Srinivas Rao, CEO of atai. "With a unified vision and a synergistic pipeline, we believe we are well-positioned to unlock the strategic value of our clinical development programs for both patients and shareholders."
The BPL-003 Phase 2b trial represents the largest controlled trial of mebufotenin (5-MeO-DMT) and the first and only controlled trial to investigate mebufotenin in the United States. Earlier open-label data demonstrated that BPL-003 was well-tolerated and capable of delivering rapid and sustained antidepressant effects lasting up to three months, whether used alone or alongside selective serotonin reuptake inhibitors (SSRIs).
Combined Company Assets and Financial Structure
BPL-003 is Beckley Psytech's patent-protected, proprietary intranasal formulation of mebufotenin benzoate, administered via a nasal spray device used in a previously approved drug product. The compound is designed to deliver rapid and durable effects from a single dose with a short time in the clinic, and is being investigated for both treatment-resistant depression and alcohol use disorder.
The combined company's pipeline will also include atai's existing assets: VLS-01 (buccal film DMT) for treatment-resistant depression and EMP-01 (oral R-MDMA) for social anxiety disorder, both currently in Phase 2 clinical development. Additionally, atai is advancing a drug discovery program to identify novel, non-hallucinogenic 5-HT2AR agonists for treatment-resistant depression.
"Clinical data has shown the rapid and durable effects of our compounds, as well as their potential to fit within the existing treatment paradigm established by SPRAVATO," said Cosmo Feilding Mellen, CEO of Beckley. "We believe that the unified business will be even better positioned to accelerate development, drive long-term value for shareholders, and, most importantly, deliver meaningful innovation for patients."
Transaction Details and Financing
The transaction has received approval from the boards of both companies and is expected to close in the second half of 2025, subject to approval of the share issuance by atai shareholders and satisfaction of other customary closing conditions. Before the merger completion, Beckley intends to spin out Eleusis Holdings Limited and its subsidiaries, which hold assets related to Beckley's ELE-101 program.
Concurrent with the merger announcement, atai executed a $30 million private placement with Ferring Ventures S.A. and Adage Capital Partners LP, set to close on June 3, 2025. The company projects that its cash runway will support the completion of multiple Phase 2 clinical milestones.
BPL-003 is covered by granted U.S., UK, and European composition-of-matter patents, with multiple further claims pending in various jurisdictions. The combined entity is expected to benefit from near and long-term operational synergies, as well as a strong intellectual property portfolio with granted U.S. patents extending to 2043.
Christian Angermayer, atai co-founder and chairman, characterized the transaction as "a pivotal milestone in delivering on the strategic vision we set forth from the start of atai in 2018: to be the leader in the psychedelic space." The continued support from existing investors in both companies, including Ferring Ventures and Adage Capital, further validates the strength and potential of the combination, according to company leadership.
Investors responded positively to the news, with atai shares rising 13.4% to approximately $2.60 before U.S. markets opened, before settling closer to 3.5% higher in midmorning trading.
