Eli Lilly (NYSE:LLY) has agreed to acquire AtaiBeckley, a clinical-stage biotechnology company held within the portfolio of The Biotech Growth Trust (LSE:BIOG).
AtaiBeckley focuses on treatments for psychiatric disorders, with its lead programme BPL-003, a mebufotenin benzoate nasal spray, having entered Phase 3 activities for treatment-resistant depression.
The drug candidate has received Breakthrough Therapy Designation from the US Food and Drug Administration.
BIOG's stake in AtaiBeckley represented 1.1% of the trust's net asset value at the time of the announcement.
The transaction will be reflected in the trust's NAV as at close of business on 16 July, with the updated figure due on 17 July.
Geoff Hsu of OrbiMed Capital, portfolio manager of The Biotech Growth Trust, said BPL-003 "has shown encouraging progress and results and has the potential to offer a differentiated treatment option for patients with treatment-resistant depression."
The updated NAV announcement is expected on 17 July.
