Eli Lilly, the pharmaceutical giant behind the popular weight-loss drugs Mounjaro and Zepbound, is intensifying its efforts to combat the rise of cheaper, off-brand versions. The company is working to remove a regulatory designation that has allowed compounding pharmacies to create their own versions of these medications.
Eli Lilly’s legal team has informed healthcare providers that shortages of Mounjaro and Zepbound are essentially over, despite the FDA not yet officially confirming this status. In a move to counter the competition, Eli Lilly launched a discounted version of Zepbound on Tuesday, presenting it as a safer alternative to the compounded medications.
This battle for market share stems from the FDA’s decision to place the active ingredients in Mounjaro and Zepbound on its shortage list in 2022. This designation allowed specialized pharmacies to create their own versions of these drugs, capitalizing on the high demand for weight-loss medications. Eli Lilly has been working to increase its supply and claims that its drugs are now readily available. However, only the FDA can officially declare a shortage resolved.
Despite the company’s claims, the FDA is currently evaluating whether the supply of tirzepatide, the active ingredient in Mounjaro and Zepbound, meets their criteria for resolving the shortage. Eli Lilly is advocating for patient safety, urging the FDA to remove the shortage designation and warning against the use of compounded versions of its drugs.
The weight-loss drug market is becoming increasingly competitive. Novo Nordisk, another major player in the industry, recently published promising data on its weight-loss drug Wegovy, demonstrating a 31% reduction in the risk of cardiovascular death or worsening heart failure events. This development highlights the fierce rivalry as companies strive to showcase the effectiveness and safety of their products.
Eli Lilly’s efforts to protect its market share extend beyond weight-loss drugs. The company’s Alzheimer’s drug, donanemab, faces potential rejection by the U.K.’s National Health Service due to safety concerns and high costs. This situation underscores the regulatory and market challenges pharmaceutical companies face on a global scale.
Eli Lilly and Co closed at $960.02 on Friday, a 2.11% increase for the day. The stock experienced a slight dip after hours. Year-to-date, Eli Lilly’s stock has seen a significant surge of 62.11%.
