Benzinga - by Vandana Singh, Benzinga Editor.
Eli Lilly And Co (NYSE:LLY) has reportedly reached a settlement agreement with a medi spa that sold counterfeit versions of its popular diabetes drug Mounjaro and weight loss treatment Zepbound, which contains tirzepatide.
As part of the deal, Totality Medispa will pay Lilly a monetary payment and cease using Lilly’s branding to promote its products.
In addition to the financial settlement, Totality Medispa is required to take corrective actions, including ensuring that any compounded tirzepatide products it obtains and distributes are produced in compliance with U.S. federal law.
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In April, U.S. District Judge Roy Altman ruled that Eli Lilly cannot rely on state law to stop a compounding pharmacy, RXCompoundStore.com, from marketing its version of the drug tirzepatide.
Eli Lilly and Novo Nordisk A/S (NYSE:NVO) have actively pursued legal action against several medi spas and compounding pharmacies.
These lawsuits aim to halt the sale of products that falsely claim to contain the active ingredients semaglutide and tirzepatide, which are used in the companies’ popular weight-loss drugs.
Last year, Novo Nordisk sued a compounding pharmacy and refiled a lawsuit against another after discovering that their products, which purported to contain the active ingredient for its weight-loss drug Wegovy, were impure by as much as 33%.
In March, Lilly reported finding bacteria and high levels of impurities in products alleged to be compounded versions of tirzepatide.
The company has since taken legal action against multiple medical spas, weight-loss clinics, and compounding pharmacies to prevent them from selling products purportedly containing tripeptide, the active ingredient in its weight-loss and diabetes medications.
“While this agreement is an important step forward, this is not a problem that Lilly can solve alone. We strongly support state and federal regulators taking action to deter and punish compounding pharmacies, counterfeiters, and others who put patients at risk by selling unsafe products claiming to be tirzepatide,” Reuters noted, citing Lilly’s statement.
Read Next: Pharmaceutical Crime Jumps 50% As Criminals Seek To Capitalize Rising Tide of Counterfeit Weight-Loss Drugs.
Price Action: LLY shares were up 1.21% at $773.22 at last check Wednesday.
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