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Lilly and Novo Nordisk Commit to Increased Production Amid Rising Demand for Diabetes and Weight-Loss Medications.
The US Food and Drug Administration says it is rescinding shortage status for Eli Lilly's top diabetes and weight-loss drugs, Mounjaro and Zepbound. A statement late on Wednesday revealed that the move could fuel competition for businesses offering cheaper compounded versions of the drugs. Zepbound was added to the shortage list in April due to increased demand, although Mounjaro had been added since late 2022.
In general, the limited supply of Lilly's and competitor Novo Nordisk's drugs has sparked demand for compounded medicines, which are tailor-made formulations developed by altering medicinal components. When a medicine is officially in shortage, federal law allows selling the compounded version, although otherwise producing it is prohibited.
According to BMO Capital Markets analyst Evan Seigerman, the FDA's decision may limit commercial production of compounded tirzepatide, an active ingredient for Lilly drugs. At the same time, as of Thursday, the FDA still put Novo Nordisk's drugs on the list of shortages.
It aims to boost its access and ward off the rise of compounded versions by offering vials of Zepbound's lowest dose on its direct-to-consumer site. Hims & Hers Health which offers compounded versions of Novo's medications, slid 7% to $17.62 at premarket trade. To meet the extraordinary demand, Lilly and Novo are committing to significant production increases.
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