ATAI Life Sciences BVEli Lilly's $3.8 billion acquisition bid at $6.75 per share, with stock surging 33.4%.
Eli Lilly and Company has agreed to acquire AtaiBeckley in a cash and contingent value rights deal valued at up to $3.8 billion, putting fresh focus on the stock's valuation. AtaiBeckley's share price surged 33.4% on the announcement and is up 84.75% year to date, with a one-year total shareholder return of 156.27% contrasting with a five-year total shareholder return that remains down 58.57%. The stock last closed at $7.15, above Eli Lilly's $6.75 per share cash offer, and its price-to-book multiple stands at 13.2x, more than five times the US pharmaceuticals industry average of 2.4x and more than double the peer group average of 5.5x. The company recorded a loss of $663.4 million on only $3.5 million of reported revenue and is forecast to remain unprofitable over the next three years, suggesting the market is pricing in substantial future potential for its mental health pipeline and clinical-stage assets.
ATAI Life Sciences BVEli Lilly's $3.8 billion acquisition bid at $6.75 per share, with stock surging 33.4%.
Eli Lilly and CompanyEli Lilly is the acquirer; the deal is a capital allocation move, but impact on Lilly is not discussed.