Eli Lilly And Co (NYSE: LLY) has taken legal action against ten entities in the U.S., including medical spas, wellness centers, and compounding pharmacies, alleging that they have been selling unauthorized, less expensive versions of its diabetes drug, Mounjaro (tirzepatide).
Eli Lilly has lodged four distinct lawsuits in federal courts in Florida and Texas. These lawsuits aim to obtain court orders that prevent Better Life Pharmacy, ReviveRX, Rx Compound Store, and Wells Pharmacy Network from marketing tirzepatide and seek unspecified monetary damages.
Furthermore, Eli Lilly is pursuing analogous legal actions against six medical spas and wellness centers spanning federal courts in Arizona, Florida, Georgia, Minnesota, South Carolina, and Utah.
These legal proceedings allege trademark infringement, as these entities have advertised compounded tirzepatide as Mounjaro.
The core allegation against the spas, clinics, and compounding pharmacies revolves around promoting and selling "compounded" drug products claiming to contain tirzepatide.
Compounded drugs are personalized variations of treatments that lack FDA approval.
These legal actions come after Novo Nordisk A/S (NYSE: NVO) filed lawsuits against medical spas and clinics for selling compounded versions of its weight-loss drugs Ozempic and Wegovy.
In May, the FDA issued warnings regarding the safety risks associated with unauthorized versions of Ozempic and Wegovy following reports of adverse reactions to compounded variants of these drugs.
Price Action: LLY shares are higher by 0.41% at $577.32 during the premarket session on the last check Wednesday.