Atai Invests $50M In Beckley Psytech For Short-Duration Psychedelics Development

Biopharma and resources-pooling company Atai Life Sciences ATAI has invested a total of $50 million in Beckley Psytech Ltd., a U.K.-based clinical-stage biotech advancing short-duration psychedelics for neuropsychiatric conditions.

Following the investment -$40 million direct and an additional $10 million in secondary share purchases from existing shareholders. Beckley Psytech will remain an independent, private company, with Atai owning 35.5% of it. 

Upon closing, Atai will receive 1:1 warrant coverage at a 30% premium on primary issuances, have the right to appoint and hold 3 of 9 seats in Beckley’s board of directors and hold a time-limited right of first refusal on future company sale, asset sales or other transfer of commercial rights as well as an indefinite right of first negotiation for BPL-003 and ELE-101.

Atai’s Bets

The strategic investment and collaboration seek to accelerate the development of Beckley’s two clinical-stage, patent-protected, short-duration psychedelic candidates, BPL-003 and ELE-101, by adding them to atai’s mental health innovation platform. 

BPL-003 is a novel, short-duration, intranasal formulation of 5-MeO-DMT (or mebufotenin) currently assessed for Treatment-Resistant Depression (TRD) and Alcohol Use Disorder (AUD) in three clinical trials. 

The first is a global, multi-site Phase 2b study assessing medium and high doses of BLP-003 vs. an active placebo in 225 patients with moderate-to-severe TRD. Both dosages were found to induce profound psychedelic experiences in a completed Phase 1 trial, with a rapid onset of psychedelic effects (within minutes) and resuming all perceptual effects within 60-90 minutes. A results readout of the study is expected in H2 2024. 

BPL-003 is also being assessed in two small Phase 2a open-label studies for TRD and AUD, with data expected in H1 2024 and mid-2024, respectively. 

ELE-101 is a novel intravenous formulation of psilocin, psilocybin’s pharmacologically active metabolite, being developed for the treatment of Major Depressive Disorder (MDD.) 

The compound has the potential to offer psilocybin’s therapeutic benefits (repeatedly demonstrated significant antidepressant effects) in a more consistent, controllable, and shorter treatment paradigm (less than 2 hours.) Initial results from the ongoing Phase 1/2a study are anticipated for H1 2024.

Management Comments

Atai founder and chairman Christian Angermayer says short-duration psychedelics have the potential to offer similar clinical benefits to longer-acting psychedelics, in a more efficient and scalable way, in turn leading to increased patient access. 

By including BPL-003 and ELE-101 in its platform, Angermayer says Atai is building “the largest portfolio of psychedelic compounds with prior clinical evidence.”

Beckley Psytech CEO, Cosmo Feilding Mellen added that both companies “share a vision for the future of mental health treatment” involving the development of effective, accessible, rapid-acting psychedelic medicines.

Alongside the financial investment, the collaboration would give room to “numerous possible synergies,” including new digital tools for optimizing patient support and future commercialization planning.

In the conference call following the news release, Atai’s co-founder and CEO Florian Brand said the team hopes the eventual rollout of exclusivity claims on BLP-003 -considering others like GH Research GHRS are also working with 5-MeO-DMT- will be won, with the molecule being the first-to-market.

“Being first is the key. There's a lot of reasons why we have conviction that this is the most substantial trial: GH is at this moment on clinical hold in the U.S., and further it is apparently currently running primarily in New York, so it's a much more limited trial, number of patients as well,” said Brand, who also highlighted Atai’s conviction in Beckley Psytech’s research team.

Photo: Benzinga edit with photo by Photon photo and Jynto on Wikimedia Commons.