RBC Capital Markets ("outperform/speculative risk," PT: $40) says Lilly's interest could "validate the target/class" and "reduce IP concerns" across psychedelics, calling GH Research "the most direct and compelling read-through".
Jefferies ("buy," PT: $10 on AtaiBeckley) says "strikingly positive data" and Spravato's $2 billion-plus sales run-rate support the commercial potential of psychedelic treatments.
Berenberg ("buy," PT: $12 on AtaiBeckley) says the company is set to be "a leader in the highly promising emerging class of psychedelics" for severe mental health conditions.
Sector gains after Lilly acquisition report
Eli Lilly LLY.N is in talks to acquire psychedelic drugmaker AtaiBeckley ATAI.O and a deal could be announced as soon as this week, Bloomberg News reported on Wednesday, citing people familiar with the matter.
Shares of AtaiBeckley jump 51% premarket, while peer GH Research GHRS.O jumps 15% premarket.
At least three brokerages highlighted positive implications for AtaiBeckley and GH Research following the report.
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