Atai Life Sciences stock surges on AbbVie’s psychedelic drug acquisition

Published 25/08/2025, 19:56
© Reuters.

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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