17 July 2026
THE BIOTECH GROWTH TRUST PLC
("BIOG" or the "Company")
Eli Lilly to acquire BIOG portfolio company, AtaiBeckley Inc.
The Company notes the announcement on Thursday, 16 July 2026 that Eli Lilly and
Company has announced its intention to acquire BIOG portfolio company,
AtaiBeckley Inc. ("AtaiBeckley") for approximately $2.8 billion, or $6.75 a
share, in cash representing a 26% premium to AtaiBeckley's closing price on
Wednesday, 15 July 2026.
The offer also includes an additional approximately $1 billion in contingent
value right payments which are based on AtaiBeckley achieving certain
development and regulatory milestones; if met, the aggregate purchase price
would total $3.8 billion, or $9.25 per share, representing a 73% premium.
AtaiBeckley is a clinical-stage biotechnology company focused on the development
of drugs for the treatment of psychiatric disorders. BPL-003 (mebufotenin
benzoate nasal spray), AtaiBeckley's lead program, was granted Breakthrough
Therapy Designation from the U.S. Food and Drug Administration and has initiated
Phase 3 activities for treatment-resistant depression.
The Company's holdings in AtaiBeckley represented 1.1% of the Company's net
asset value ("NAV") at the time of the announcement. The transaction will be
reflected in the Company's NAV as at close of business on 16 July, 2026, which
will be announced on Friday. 17 July 2026.
This acquisition is the latest in a series of successful M&A outcomes across the
portfolio this year - following Avidity Biosciences, Cidara Therapeutics, Amicus
Therapeutics, Apellis Pharmaceuticals, KalVista Pharmaceuticals, Esperion
Therapeutics and Nuvalent, Inc - which have contributed meaningfully to the
Company's performance. It reinforces the conviction that investing in innovative
small and mid-cap biotechnology companies, where much of the sector's
breakthrough science is taking place, can create substantial value for
shareholders over the long term.
Geoff Hsu of OrbiMed Capital LLC, Portfolio Manager of The Biotech Growth Trust
PLC, commented:
"AtaiBeckley is developing innovative treatments for psychiatric disorders, an
area of significant unmet medical need. Its lead programme, BPL-003, has shown
encouraging progress and results and has the potential to offer a differentiated
treatment option for patients with treatment-resistant depression.
"Eli Lilly's acquisition represents another successful outcome for BIOG and
further validates our investment strategy. We continue to focus on identifying
innovative biotechnology companies capable of delivering important new medicines
and creating substantial value for shareholders, whether through clinical
success, commercial execution or strategic transactions such as this."
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Enquiries:
SEC Newgate (George Esmond)
Public Relations
020 3757 6894
Frostrow Capital LLP
Company Secretary
020 3709 8734
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