The Biggest Fish in the “Sea of Pharma” is Riding the Psychedelic Wave
Another big signal was heard this week in the neuroscience community related to the potential use of psychedelics for treating mental disorders. Yesterday it was announced that Eli Lilly acquired Atai Beckey, a biotech manufacturer developing multiple psychedelics for the treatment of various mental conditions. The leading compound, BPL-003, is currently being studied in phase 3 trials for treatment-resistant depression. It is administered as a nasal spray and requires patients to remain in the clinic for about two hours, similar to esketamine (Spravato). Atai Beckley also has several other compounds in earlier phase trials for the treatment of Social Anxiety Disorder (SAD) and Opioid Use Disorder.
This news is big for a few reasons. First, on the heels of the Compass data in last June, this acquisition now represents a third large pharma manufacturer investing in this novel and exciting treatment approach. And not only is it a third acquisition by big pharma, but it was Eli Lilly who made the purchase.
Lilly, the company that brought Prozac to the world.
Lilly, who launched other leading CNS brands including Zyprexa, Cymbalta, Symbiax and Strattera.
Lilly, who many physicians still today associate as a longtime leader in neuroscience.
Lilly, now the largest pharma company in the world.
So, for anyone not buying into the psychedelic wave up till now, it is time to start paying attention (get your surfboard out! ha). The potential is here already, as proven by latest sales numbers for Spravato (esketamine), the acquisitions made by Otsuka and Abbvie in the past year, and the ongoing money being invested in pipeline products. And now Lilly is on board.
This also leads me to my next question of who else will get on board? What other big pharma players are going to look at an acquisition? Possibly Lundbeck? A company dedicated to the CNS/neurology space since its inception and needing to continue to bolster its pipeline. Maybe Takeda? Biogen?
Regardless of who it is or if the biotech’s go it alone, the potential availability of new class of medications is very exciting and hopeful for all those patients not being treated successfully today for mental health. When you think that nearly 30% of depressed patients are considered treatment-resistance and you look at the rising tide of suicide, and the lack of treatments for PTSD and substance-abuse, how can you not be enthusiastic??