Eli Lilly sues clinics allegedly selling knockoff versions of Mounjaro

Eli Lilly on Tuesday sued 10 medical spas, wellness clinics and compounding pharmacies across the U.S. for allegedly selling cheaper, unauthorized versions of the corporate’s diabetes drug Mounjaro. 

The actions come as Eli Lilly grapples with a shortage of Mounjaro within the U.S. on account of skyrocketing demand. Much of the drug’s popularity comes from its off-label ability to assist patients lose unwanted kilos.

Eli Lilly initiated several lawsuits in federal courts in Florida, Texas, Arizona, Georgia, Minnesota, South Carolina and Utah. The litigation asked the courts for orders blocking the sales of counterfeit versions of Mounjaro and monetary damages.

Eli Lilly specifically accuses the spas, clinics and compounding pharmacies of selling and selling “compounded” drug products that claim to contain tirzepatide, the lively ingredient in Mounjaro. Compounded drugs are custom-made versions of a treatment that should not approved by the U.S. Food and Drug Administration. 

Eli Lilly is the only patent holder of tirzepatide and doesn’t sell that ingredient to outside entities. It’s unclear what the spas and clinics are literally selling to consumers. 

“Slightly than invest the time and resources essential to research, develop, and test their products with the intention to be sure that they’re protected and effective and to acquire regulatory approval to market them, Defendant is just creating, marketing, selling, and distributing unapproved recent drugs for unapproved uses throughout Florida and fourteen other states,” Eli Lilly wrote in a single suit against Rx Compound Store, a compound pharmacy based in Florida. 

Eli Lilly, within the suit, added that selling counterfeit versions of Mounjaro “puts patients in danger by exposing them to drugs which have not been shown to be protected or effective.”

Rx Compound Store didn’t immediately reply to CNBC’s request for comment on the suit.

The moves come months after Novo Nordisk filed several lawsuits accusing spas and medical clinics of selling compounded versions of its highly popular weight-loss drugs Ozempic and Wegovy. 

The FDA in May warned in regards to the safety risks of unauthorized versions of Ozempic and Wegovy after reports emerged of opposed health reactions to compounded versions of the drugs.

The FDA has not issued a warning about compounded versions of tirzepatide. Nonetheless, Mounjaro, Ozempic and Wegovy have all been briefly supply within the U.S. since last yr, in keeping with the FDA’s database. 

Analysts and industry executives have said annual sales of those drugs and similar treatments for weight reduction could hit $100 billion inside a decade.