New Delhi, July 17 -- Eli Lilly is entering the emerging psychedelic medicine sector through an agreement to acquire AtaiBeckley, a clinical-stage biotechnology company developing treatments for serious mental health conditions. The transaction is valued at approximately $2.8 billion upfront and could reach $3.8 billion if specified clinical development and regulatory milestones are achieved.

Under the agreement, Lilly will pay $6.75 in cash for each outstanding AtaiBeckley share. Shareholders could receive an additional $2.50 per share through contingent value rights linked to the progress of the company's two leading drug candidates. The upfront purchase price represents an approximately 40% premium to AtaiBeckley's 30-day volume-weigh...