business | Lilly's weight reduction drug copycats struck a blow when the shortage ended

By Ike Swetlitz and Madison Muller, Bloomberg News

Eli Lilly & Co.'s blockbuster weight-loss and diabetes drugs aren’t any longer in brief supply within the U.S., threatening to upend the numerous counterfeits that became popular when patients couldn't find the brand-name drugs.

The Food and Drug Administration said Wednesday that the shortage of Lilly's Zepbound and Mounjaro had been resolved. The agency added that there are “legal restrictions on the manufacture of copies of FDA-approved drugs” when there isn’t a shortage.

The FDA first introduced the deficiency classification in late 2022. This designation allowed pharmacies to sell knock-offs of the brand-name drugs – Mounjaro for diabetes and Zepbound for obesity – without having to undergo the identical laborious testing process. These copycats are widely utilized in medical spas and telehealth firms, often at a much lower cost.

Meanwhile, Lilly has invested heavily in manufacturing to extend supplies of the favored shots and has aggressively sought to limit compounded versions of the drugs. She raised concerns about quality, saying some were contaminated with bacteria or chemical contaminants. Compounders have said they follow regulations and produce high-quality drugs.

The drugmaker said Wednesday that while all doses of Zepbound and Mounjaro can be found, the refrigerated drug supply chain is complex and patients' ability to seek out specific doses in pharmacies can still vary.

“We know that many people rely on our medicines, which is why we have invested significantly to expand production and bring new options to market,” said Patrik Jonsson, executive vice chairman and president of Lilly Cardiometabolic Health and Lilly USA , in an emailed statement.

Experts estimate that a whole bunch of 1000’s of Americans have used copycat versions of Lilly's drugs or similar shots from Novo Nordisk A/S, which have also been in brief supply. Makers of such compounded drugs collectively generate as much as $1 billion a yr, in accordance with investment bankers who work with the industry.

Compounding also attracted telemedicine firms that marketed services to attach patients with health care providers who can prescribe the drugs.

The end of the shortage is more likely to limit future worsening of shortages, but some could also be allowed to proceed under other U.S. policies.

The FDA's announcement doesn’t mean that the drug will probably be available all over the place and in any respect times.

“Patients and prescribers may still experience intermittent local supply disruptions as products move through the supply chain from the manufacturer and distributor to local pharmacies,” the agency said.


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