On Thursday, July 18, Eli Lilly, a giant pharmaceutical company with headquarters in Indianapolis, Indiana, announced the purchase of the German company, AtaiBeckley, a leader in the use of psychedelics to treat mental health.

AtaiBeckley was formed just last year by the merger of Atai Life Science and Beckley Psytech Limited. Their website indicates a pipeline for four “psychedelic-based neuroplastogens”:

• Mebufotenin benzoate (5-MeO-DMT) is in Phase 3 clinical trials for treatment-resistant depression
• DMT is in Phase 2 clinical trials for treatment-resistant depression
• R-MDMA is in Phase 2 trials for social anxiety disorder
• Novel 5-HT2A Receptor Agonists are in preclinical studies for treating opioid use disorder and treatment-resistant depression

BPL-003 (mebufotenin benzoate) has been designated a “breakthrough therapy” by the U.S. Food and Drug Administration (FDA) and has been granted patents in the E.U. and the U.K. as well as in the U.S. In Phase 2 trials, a single 10mg dose “resulted in the rapid and durable reduction of depression symptoms.”

Participants in the study were followed for 12 weeks. More than half the patients (55%) experienced rapid relief one day after dosing, a result that remained durable after one week and two weeks. After 12 weeks, 45% of the patients said their depression was in remission. No serious adverse events (SAEs) were reported.

5-MeO-DMT is also known as the toad-licking psychedelic. It’s derived from secretions of the Sonoran Desert toad, pictured above. Typically, the fluid extracted from the toad’s gland is dried and smoked, rather than licked. It can result in a psychiatric episode including visions and paranoia. However, the nasal version tested by AtaiBeckley was found to have only mild hallucinogenic effects that dissipated after two hours.

DMT, or N,N-dimethyltryptamine, is another natural product and the active ingredient in ayahuasca, a psychedelic brew from the natives of the Amazon River basin. A systematic review of clinical trials of DMT found “a favourable safety profile across various doses and routes (IV and inhalation), with no SAEs reported in healthy volunteers and patients [with major depressive disorders].”

MDMA is also known as the street drug ecstasy. R-MDMA is considered “one side” of MDMA and generates the empathetic feelings of ecstasy without the stimulation caused by S-MDMA, the other side of the drug. The positive impacts and minimal side effects make the drug a promising solution for treating social anxiety.

The 5-HT2A receptor is a serotonin receptor found throughout the body but especially concentrated in the cerebral cortex. The receptor is associated with mood disorders including schizophrenia and obsessive-compulsive disorders. Blocking these receptors has been found to be therapeutic.

Eli Lilly paid a whopping $2.8 billion for AtaiBeckley. Who says psychedelic research doesn’t pay? Financial website CNBC says of the acquisition:

The deal marks the latest sign of momentum behind psychedelics. The Trump administration has prioritized development of psychedelic-based treatments for mental health conditions, including depression and post-traumatic stress disorder.

Eli Lilly, the maker of Prozac, has been treating depression for a long time. They believe the psychedelics work basically by shocking the brain into making new connections. Dosages can be small and effects long-lasting. 

For “the world’s most valuable healthcare company” to take the lead in researching psychedelics for mental health indicates that the shamans of the Amazon may have the last laugh.

Written by Steve O’Keefe. First published July 22, 2026.

Sources:

“Eli Lilly to buy psychedelics maker AtaiBeckley for $2.8 billion as experimental treatments gain traction,” CNBC, July 16, 2026.

“Mood Disorders in the News,” Psychiatric Times, May 20, 2024.

“From Toad Toxin to Medicine: The Promise of 5-MeO-DMT,” Journal of Health Economics and Outcomes Research, June 4, 2024.

“Safety and tolerability of N, N-dimethyltryptamine (DMT) in healthy volunteers and Major Depressive Disorder (MDD) patients: A systematic review of early-phase clinical trials,” Progress in Neuro-Psychopharmacology and Biological Psychiatry, July 13, 2025.

Image Copyright: Wildfeuer, used under Creative Commons license.