Atai Life Sciences (NASDAQ: ATAI) and Beckley Psytech Limited have announced a strategic combination, creating a new entity, Atai Beckley, with a joint leadership team and board. The transaction involves a $30.0 million private placement by Ferring Ventures S.A. and Adage Capital Partners LP, and the new entity is expected to operate under this name, subject to successful completion of the transaction. The combined company is set to be a global leader in psychedelic mental health therapies, with a pipeline of potentially transformative, rapid-acting psychedelic assets.
The all-share transaction is anticipated to close in the second half of 2025 and is subject to approval by the shareholders of Atai, among other customary closing conditions. As a result of the transaction, Beckley's shareholders (excluding Atai) will be issued approximately 105 million new shares, representing approximately 31% of the combined company on a fully diluted basis.
The strategic combination is expected to solidify the companies as leaders in rapid-acting and accessible psychedelic treatments for mental health conditions. The new entity will have a synergistic fully owned pipeline that includes proprietary, rapid-acting psychedelic compounds differentiated by their convenient route of administration and short time-in-clinic. The transaction is also expected to bring financial synergies and a strong intellectual property portfolio with granted U.S. patents out to 2043.
Beckley's topline data from the phase 2b study of BPL-003 in patients with treatment-resistant depression (TRD) is expected in mid-2025, marking a potentially significant value inflection point. The study builds on previously reported open-label results, demonstrating the rapid and lasting antidepressant effect of a single dose of BPL-003 for up to three months.
Additionally, Atai executed a $30.0 million private placement with Ferring Ventures S.A. and Adage Capital Partners LP, which is not contingent on the closing of the transaction. The private placement is expected to close on June 3, 2025, subject to customary closing conditions.
The transaction is a pivotal milestone in delivering on the strategic vision set forth by Atai in 2018 to be a leader in the psychedelic space. It represents a transformative moment for the companies, positioning them to unlock the strategic value of their clinical development programs for both patients and shareholders.
The combined company is expected to leverage the expertise, teams, and networks of both organizations to accelerate the development and commercialization of transformative mental health treatments. The transaction is subject to approval of the share issuance by the shareholders of Atai and satisfaction of other customary closing conditions.
Guggenheim Securities is serving as the financial advisor to Atai, while Latham & Watkins LLP is serving as legal counsel. Cantor is serving as the financial advisor to Beckley Psytech, and CMS and Mayer Brown are serving as its legal counsel. Guggenheim Securities is also acting as the lead placement agent for the private placement, while Berenberg is acting as the joint-lead placement agent for the private placement. Following these announcements, the company's shares moved -0.43%, and are now trading at a price of $2.31. Check out the company's full 8-K submission here.
