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Around the nation: Eli Lilly buys mental health company for $2.8B


Eli Lilly has agreed to buy AtaiBeckley, a drug manufacturer focused on treatments for mental health conditions, for $2.8 billion, in today's bite-sized hospital and health industry news from the District of Columbia, Indiana, and New Jersey. 

  • District of Columbia: HHS' Office of Inspector General (OIG) recently reported that it generated $5.56 billion in expected recoveries and projected savings over a six-month period. For every dollar OIG spent between October 2025 and March 2026, the watchdog returned $12.70 by cracking down on healthcare fraud. Overall, OIG's enforcement actions included 245 criminal informations and indictments, 317 criminal actions, 287 civil actions, and 1,212 individuals or entities excluded from Medicare. However, most of the monetary impact was due to a few cases with large settlements. For example, a CEO of healthcare software company was sentenced to 15 years in prison and ordered to pay $452 million in restitution after being convicted of a fraud scheme involving telemedicine and durable medical equipment. For fiscal year 2025, OIG's collaboration with Medicaid fraud units led to 1,185 convictions and over $2 billion in recoveries. (Weixel, The Hill, 7/13; Casolo, Becker's Hospital Review, 7/14)
  • Indiana: Eli Lilly has agreed to buy AtaiBeckley, a drug manufacturer focused on treatments for mental health conditions, for $2.8 billion. AtaiBeckley's pipeline of therapeutics includes psychedelic treatments, such as its lead program BPL-003 for treatment-resistant depression. Contingent value rights could increase the total value of the deal to $3.8 billion. According to Lilly, the deal is expected to bolster its neuroscience pipeline and will likely be completed in the third quarter of the year. In recent months, Lilly has announced several new acquisitions, including three vaccine developers, Kelonia Therapeutics, Ajax Therapeutics, Centessa Pharmaceuticals, Orna Therapeutics, and Ventyx Biosciences. (Kellaher, Wall Street Journal, 7/16)
  • New Jersey: Glenmark Pharmaceuticals has been ordered to pay around $29.7 million to settle an ongoing multistate lawsuit that accused it and dozens of other pharmaceutical manufacturers of participating in a coordinated scheme to inflate generic drug prices and reduce competition. The settlement was announced by New York Attorney General Letitia James. "Glenmark and other companies worked behind the scenes to boost their profits by illegally coordinating to raise drug prices, and now we are getting justice for the consumers who were harmed," James said. Glenmark will pay $25 million plus interest over the next four years, bringing the total settlement to $29.668 million. Money from the settlement will be distributed to consumers who were affected by the alleged price fixing. Glenmark will also implement an antitrust compliance program and cooperate with the attorneys general involved in the lawsuit as they continue to litigate against other drug manufacturers. (Bender, Healthcare Finance, 7/15)

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