The Big Pharma Psychedelic Buyout Spree Has Officially Begun
Quoth the Raven
· QTR’s Fringe Finance
· July 15, 2026 at 23:06
· ⏱ 10 min read
| Read on Substack ↗
Summary
Big Pharma's acquisition spree in psychedelics is legitimizing the sector, with Eli Lilly reportedly in talks to buy AtaiBeckley. The author argues that psychedelic companies no longer need perfect clinical results—only institutional acceptance—and that M&A will drive significant upside, recommending the PSIL ETF as a diversified play.
•Eli Lilly is in talks to acquire AtaiBeckley at a premium to its ~$2 billion market cap, according to a Bloomberg report.
•The author has been bullish on psychedelics since early 2025, naming them 'Best Idea' sector for 2026.
•Definium Therapeutics surged 60% in one session after positive Phase 3 results for its LSD-based depression treatment.
•The author believes Washington's posture toward psychedelics is shifting, citing RFK Jr.'s HHS and a supportive executive order.
•The PSIL ETF is explicitly recommended as a diversified way to play the theme, with a reiterated price target above $100.
•The author expects large pharma to acquire late-stage psychedelic companies rather than build internal programs, mirroring past biotech acquisition waves.
Author recommends PSIL as a diversified vehicle to capture the anticipated M&A wave and institutional acceptance of psychedelic therapies, with a long-term price target above $100.
This newsletter, published July 15, 2026,
features Quoth the Raven
discussing PSIL.
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