Lilly Threatens Obesity Drug Copycat Makers After Shortage (1)

Eli Lilly & Co. is targeting additional drug compounders and telehealth companies that make copycat versions of its weight loss drug, with plans Tuesday to file two lawsuits and send about 50 cease-and-desist letters.

The company is demanding that the compounders and telehealth companies stop mass producing its blockbuster drug tirzepatide—a diabetes and obesity treatment branded as Mounjaro and Zepbound.

Weight loss drugs dominate the compounding industry, filling market demand after brand manufacturers declared they were in shortage. The industry producing copycats is estimated to exceed $1 billion in annual sales.

Compounded tirzepatide can be purchased for a few hundred ...