Eli Lilly And company Lia is one of many companies benefiting from the demand for weight-loss drugs. The company is also seeing competition in the market, including knock-off drugs that it says could be unsafe.
What happened: A recent report says Eli Lilly is seeking medical records of people who took knockoff weight loss drugs.
The request, communicated by BloombergAccording to the pharmaceutical company, this is done for safety reasons.
Eli Lilly is building a case against companies selling knockoffs of the company’s Zepbound and Monjaro. Pharmacies that make the preparations have been taking advantage of supply constraints and shortages facing Lilly while demand remains high.
Lilly has said the quality of products from compounding pharmacies is inferior and questions the safety profile of the treatment.
A letter seen by Bloomberg requested information from a patient who took a Lilly product at a specialty pharmacy.
“We would appreciate it if you would complete the attached form and sign the Authorization for Release of Medical Information so that we can obtain more details from the treating physician about your experience,” the letter says.
Along with articles like the letter, Eli Lilly also placed an advertisement in national publications encouraging patients to make sure they are taking the “real product.”
Read also: Can Novo Nordisk's weight-loss drug Ozempic help curb the devastating addiction crisis? New research says yes
Why is it important?Obtaining medical records could be key in Eli Lilly's battle against compounding pharmacies. Shortages of weight-loss drugs from Lilly and other companies helped make the case for a loophole that would allow compounding when there is a supply constraint.
If Eli Lilly can prove that the drugs are not safe and are causing side effects or harm to patients, it could help put an end to compounding pharmacies. Without proof, Eli Lilly could fall victim to the legal loophole and the problem of growing demand for its own products.
Eli Lilly reported second-quarter revenue of $11.3 billion, up 36% from the same period last year. Mounjaro and Zepbound had revenue of $3.1 billion and $1.2 billion, respectively, a significant increase in the quarter.
The pharmaceutical company raised its full-year guidance on the back of second-quarter results and rising demand for several products.
LLY Price Action: Eli Lilly shares closed Wednesday at $924.56 versus a 52-week trading range of $516.57 to $972.53. Eli Lilly shares are up 56% year-to-date in 2024.
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