** Eli Lilly LLY.N is ​in talks to acquire psychedelic drugmaker ‌AtaiBeckley ATAI.O and a deal could be announced as soon as this week, Bloomberg News ​reported on Wednesday, citing people ​familiar with the matter

** Shares of AtaiBeckley jump 51% premarket, while peer GH Research GHRS.O jumps 15% premarket

** At least three brokerages highlighted positive implications for AtaiBeckley and GH Research following the report

VALIDATION FOR PSYCHEDELIC DRUGS

** RBC Capital Markets ("outperform/speculative risk," PT: $40) says Lilly's interest could "validate the target/class" and "reduce IP concerns" across psychedelics, calling GH Research "the most direct and compelling read-through"

** Jefferies ("buy," PT: $10 on AtaiBeckley) says "strikingly positive data" and Spravato's $2 billion-plus sales run-rate support the commercial potential of psychedelic treatments

** Berenberg ("buy," PT: $12 on AtaiBeckley) says the company is set to be "a leader in the highly promising emerging class of psychedelics" for severe mental health conditions