End of Zepbound Shortage Threatens $1 Billion Knockoff Industry

Americans who turned to telehealth companies and compounding pharmacies for cheap versions of Eli Lilly & Co.’s weight-loss drugs are scrambling to figure out if they’ll still have access after US regulators signaled an end to their unfettered use.

Lilly is now able to produce enough of its blockbuster obesity and diabetes medicines that the nationwide shortage of Mounjaro and Zepbound is officially over. As a result, regulators can begin cracking down on the industry that sprang up overnight to make the copycat versions that quenched surging demand.

The message from Scott Brunner, chief executive officer of the ...