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Psychedelics giant Atai is targeting a $2.3 billion valuation in its IPO. We pored over its 446-page filing to find 7 key takeaways.


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Atai Life Sciences, the psychedelics giant backed by big name investors like Peter Thiel, is going public.

The company was founded in 2018 and has gained momentum over the past few years, raising over $350 million from investors. In documents filed with the US Securities and Exchange Commission in late April, Atai said it plans to trade on the Nasdaq under the symbol “ATAI.” 

Atai’s founders are Christian Angermayer, Florian Brand, Srinivas Rao, and Lars Christian Wilde. 

The company started as a vehicle to fund psychedelics companies like Compass Pathways, which is focused on developing psilocybin-based medications for treatment-resistant depression.

Compass went public on the Nasdaq in September and now has a valuation of $1.56 billion. Atai owns 19.7% of Compass.

Atai has developed into a biotech platform company, Brand told Insider in an interview last year, meaning it invests in and works closely with companies looking to develop medicines for mental-health conditions using psychedelics like psilocybin, arketamine, and ibogaine. 

Atai now has a portfolio of 10 therapeutic programs, around half of which are focused on developing psychedelics medications to treat mental illnesses. 

Atai would become the second psychedelics company to IPO on a major US exchange after Compass. Other psychedelics companies — like Bright Minds, MindMed, Field Trip, and MagicMed — have recently listed or applied to list through acquisitions or uplisting from Canadian exchanges. 

The banks leading the offering include Credit Suisse, Citigroup, Cowen, Berenberg, Cantor, RBC Capital Markets, and Canaccord Genuity.

Insider read through the company’s latest 446-page IPO filing, dated June 11, to learn more about its structure and strategy. Here are the seven key takeaways.

The company is targeting a $2.3 billion valuation

Atai plans to sell 16.4 million shares for $13 to $15 apiece, according to the filing. At the upper end of that range, the company would raise about $246 million and reach a valuation of $2.3 billion.

Atai has had significant losses since it was founded and expects to continue to lose money

As a company focused on developing medications and then asking the US Food and Drug Administration to approve them, Atai doesn’t expect to make any money until its medications win clearance and are available for sale.

In 2019, the company posted a loss of $14.1 million. In 2020, its losses were about $170 million.

As of December 2020, Atai had $97.2 million cash on hand. In March, the company raised around $158 million through a Series D round, the filing says.

The company says it has not generated any revenue and does “not expect to generate any revenue from the sale of our product candidates for the foreseeable future.”

If its medications are approved, Atai says it could generate revenue from product sales, collaborations, and license agreements but notes that there is a risk that the company’s experimental products may not be approved.

One of the experimental treatments an Atai subsidiary is working on has progressed to a mid-stage trial in people. The rest are in early stages of research.

The company has 10 therapeutic programs in its pipeline, five of which …read more

Source:: Business Insider

      

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