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Investing.com -- Atai Life Sciences (NASDAQ:ATAI) stock rose 6.2% after AbbVie (NYSE:ABBV) announced plans to acquire Gilgamesh Pharmaceuticals’ bretisilocin, a novel psychedelic therapy for major depressive disorder (MDD).
The deal, valued at up to $1.2 billion including upfront payments and development milestones, highlights growing pharmaceutical interest in psychedelic-based mental health treatments. Bretisilocin is a short-acting serotonin receptor agonist designed to provide therapeutic benefits with a shorter psychoactive experience than traditional psychedelics.
AbbVie’s acquisition comes after Gilgamesh reported positive Phase 2a results for bretisilocin, which demonstrated a significant 21.6-point reduction in depression symptoms compared to a 12.1-point reduction in the active comparator group, as measured by the Montgomery-Åsberg Depression Rating Scale.
The transaction appears to have boosted investor confidence in Atai’s own psychedelic drug pipeline, which includes several candidates in Phase 2 clinical development. Atai’s portfolio features BPL-003 (intranasal mebufotenin benzoate) and VLS-01 (buccal film DMT) for treatment-resistant depression, as well as EMP-01 (oral R-MDMA) for social anxiety disorder.
Bloomberg Intelligence analyst Jean Rivera Irizarry noted that "AbbVie’s up to $1.2 billion deal for Gilgamesh’s bretisilocin appears aimed at taking on ATAI’s solid position in fast-acting psychedelics. ATAI’s lead asset BPL-003, an intranasal 5-MeO-DMT, has shown rapid onset and three-month durability with positive Phase 2b treatment-resistant depression data, and a pivotal trial is possible in 2026."
As part of the agreement, Gilgamesh will spin off a new entity, Gilgamesh Pharma Inc., to maintain its employees and other development programs, including its existing collaboration with AbbVie.
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