Rising Big Pharma Interest in Psychedelics as LLY Acquires ATAI for up to $3.8B

Research evidence excerpt

Rising Big Pharma Interest in Psychedelics as LLY Acquires ATAI for up to $3.8B

USA | Biotechnology

AtaiBeckley EquityJulyResearch16, 2026

FLASH NOTERising Big Pharma Interest in Psychedelics as

RATING BUYLLY Acquires ATAI for up to $3.8B

PRICE $5.36^

LLY acquires ATAI for $6.75/sh ($2.8B in equity) plus a $2.50/sh CVR (worth

~$1B), supporting our view Big Pharma's interest in the space is rising as PRICE TARGET | % TO PT $10.00 | +87%

sponsors continue to deliver compelling Phase II/III data in various hard-to- 52W HIGH-LOW $6.75 - $2.59

treat $1B+ mental health disorders. ATAI's lead asset BPL-003 (intranasal 5- FLOAT (%) | ADV MM (USD) 82.1% | 49.29

MeO-DMT) has produced one of the most profound psychedelic datasets in MARKET CAP $1.9B

Phase II. Phase III success by early 2029 could open up a $1-2B+ oppty in TRD TICKER ATAI ^Prior trading day's closing price unless otherwise

depression. noted.

Big Picture: Lead asset BPL-003 (intranasal 5-MeO-DMT) received a BTD breakthrough designation

in Oct 2025 after generating profound Phase IIb data in TRD depression, helping drive our conviction

in Phase III success ($1-2B+ peak sales). As we await Phase III data by early 2029, ATAI's second

psychedelic VLS-01 (a buccal film DMT) is planning to share de-risking Phase IIb TRD data in Q4:26.

EMP-01 (oral R-MDMA) could advance in SAD social anxiety, following supportive Phase IIa data.

Investor sentiment on psychedelics continues to improve: (1) The overall drug class is generating

strikingly positive data (e.g. ATAI, CMPS, DFTX, HELP, GHRS). (2) Our KOLs confirm psychedelics

could represent the "biggest change" to psychiatry and are possibly a "paradigm shift," with patient

demand already seeming "insatiable". (3) The regulatory backdrop is also improving, as evidenced