Eli Lilly & Co. (LLY) sued 10 medical spas, wellness centers and compounding pharmacies across the United States for allegedly selling products fraudulently claiming to be its popular diabetes medication, Mounjaro.
Takeaways
- Eli Lilly has sued 10 different outlets for allegedly selling counterfeits of its popular diabetes drug, Mounjaro.
- There is a shortage of this drug on the market, even though Eli Lilly said it was taking steps to increase supply. .
- Eli Lilly is seeking damages in these matters.
Tirzepatide, which Eli Lilly sells under the brand name Mounjaro, gained popularity after studies showed it could help patients lose about 26.6 percent of their weight following prolonged use or to intensive changes in their lifestyle. While Mounjaro was approved for the treatment of diabetes earlier this year, Lilly has filed for approval by the Food and Drug Administration (FDA) for the injections to be used for weight management.
The offer being Unable to meet demand, there is a shortage of Mounjaro in the market, although Eli Lilly is taking steps to increase supply.
Eli Lilly filed a lawsuit in federal courts in Florida and Texas, filing four lawsuits. These lawsuits seek court orders prohibiting Better Life Pharmacy, ReviveRX, Rx Compound Store and Wells Pharmacy Network from selling tirzepatide. The drugmaker is also seeking unspecified damages in the cases.
"Defendants use Lilly's brand to attract customers and generate revenue and profit, including by masquerading as “Mounjaro” their own unapproved compounded drugs purporting to contain tirzepatide, for a use for which Mounjaro is not approved, namely weight loss, & #34; Eli Lilly said in the lawsuits.
Earlier this year, Novo Nordisk (NVO) also filed similar lawsuits, accusing spas and medical clinics of selling Ozempic and Wegovy, its in-demand weight loss drugs that are also in short supply.
The industry Weight loss is big business and could reach $100 billion in a decade, with more than half a dozen companies competing for market share.
The actions of Eli Lilly stocks rose slightly as of midday Wednesday, but are up more than 56% year to date.
