AtaiBeckley Inc. is working with Jefferies Financial Group and JPMorgan Chase to explore a potential $2 billion sale or partnership for its flagship psychedelic drug candidate BPL-003. The nasal spray, designed to treat severe depression, is entering phase 3 clinical trials after receiving FDA approval to advance following successful end-of-phase 2 meetings.

The company has seen its shares fall 17% this year, reducing its market value to about $1.2 billion. Under potential deals, AtaiBeckley could share clinical trial costs and marketing responsibilities while splitting revenues with a partner, or opt for a royalty arrangement. The company aims to conclude negotiations by the second quarter.

Founded by Christian Angermayer and backed by billionaire Peter Thiel, AtaiBeckley is positioning itself in the growing psychedelic mental health market. The move comes as Johnson & Johnson's esketamine treatment Spravato has become a multibillion-dollar product growing at over 50% annually. With more than 20 million US adults suffering from depression and 30% unresponsive to treatment, the market potential for breakthrough therapies remains substantial.