Lilly, Novo sued over GLP‑1 drug dominance by compounding pharmacy

By Mike Scarcella WASHINGTON, Jan 15 (Reuters) - Drugmakers Eli Lilly (LLY.N) and Novo Nordisk (NOVOb.CO) have been sued in Texas by a compounding pharmacy that alleges they are illegally blocking access to customized versions of their blockbuster weight-loss medicines. Strive Specialties filed the lawsuit on Wednesday in the federal district court in San Antonio, alleging Lilly and Novo abused their dominance in the GLP-1 drug market to keep patients from obtaining lower-cost versions of the medications. GLP-1 drugs such as Novo’s Ozempic and Wegovy and Eli Lilly’s Mounjaro and Zepbound have surged in demand for diabetes and weight loss. The companies are competing with each other while also trying to stave off competition from compounding pharmacies that replicate brand-name drugs during shortages by adjusting, mixing, or combining ingredients to meet patient needs. Eli Lilly in a statement said “Strive’s lawsuit is wrong, on both the facts and law, and an attempt to shift focus away from its own conduct.” Novo in a statement said “the claims in this litigation are without merit, and we will vigorously defend against them in court.” Lilly sued Strive in October in federal court in Arizona for allegedly falsely advertising that some of its mass-compounded products are clinically proven and “personalized.” Strive said in Wednesday’s lawsuit that Lilly and Novo struck exclusive deals with major telehealth providers that prevented doctors on those platforms from prescribing compounded GLP-1 drugs, even when a physician determined a patient needed a tailored dose or formulation. Strive also accused Lilly of disparaging compounded drugs as unsafe and interfering with the pharmacy’s relationships with payment processors and technology platforms. The company says compounders filled a gap during shortages and continue to offer options that branded products don’t provide. Strive is seeking unspecified monetary damages and a court order barring Lilly and Novo from enforcing the alleged exclusivity agreements. The case is Strive Specialties Inc v Eli Lilly & Co et al, U.S. District Court for the Western District of Texas, No. 5:26-cv-00155. For plaintiff: Courtney Barksdale Perez and Joshua Bennett of Baker & Hostetler, and David Prichard of Prichard Oliver Montpas For defendants: No appearances yet Read more: Novo Nordisk CEO signals new appetite for risk in obesity deals Wegovy maker Novo hit with investor class action over revenue forecast cut US judge sides with FDA’s removal of Lilly’s weight loss drug from shortage list Lilly sues two compounders over copies of weight-loss drugs