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Pharmaceutical giant Eli Lilly & Co. has launched legal action against four telehealth companies—Mochi Health, Fella Health, Willow Health, and Henry Meds—for allegedly selling compounded versions of tirzepatide, the key ingredient in Lilly’s popular weight-loss and diabetes drugs, Mounjaro and Zepbound.
The lawsuits, filed Wednesday, accuse the telehealth providers of misleading consumers by marketing “untested, unapproved drugs” and diverting patients away from Lilly’s FDA-approved medications. Lilly claims the companies are falsely advertising personalized treatments while actually engaging in mass marketing of slightly altered versions of tirzepatide to circumvent FDA regulations. The company further alleges some sites are selling tirzepatide in formulations like oral tablets and drops, which haven’t undergone clinical trials.
The legal battle arises amidst a backdrop of previous drug shortages for Mounjaro and Novo Nordisk’s Wegovy, which fueled a surge in compounded GLP-1 medications. While the FDA declared the shortages over last month, effectively halting mass compounding of tirzepatide, some pharmacies have reportedly continued the practice by producing slightly altered versions. This isn’t Lilly’s first foray into legal action over this issue; earlier this month, the company sued two pharmacies for similar alleged misrepresentation of their compounded products.
Lilly’s lawsuits highlight a contentious point of debate. In March, Mochi Health CEO Myra Ahmad told CNBC the company planned to continue selling compounded tirzepatide, arguing that personalized treatments fell outside of regulatory concerns. Ahmad expressed confidence in her prescribers’ autonomy to determine the best course of treatment for their patients and dismissed potential legal repercussions.
However, Lilly’s legal filing directly challenges Ahmad’s position, claiming she is not a licensed physician and accusing Mochi Health of improperly influencing prescribers’ decisions. Similar allegations were leveled against Fella Health, with Lilly claiming the company made sweeping corporate decisions that dictated patient care, including changing patients’ tirzepatide formulations without individual consultation.
Lilly is seeking a court order to prevent the four telehealth companies from marketing or selling tirzepatide. The legal proceedings are expected to be lengthy. The telehealth companies named in the lawsuits did not immediately respond to requests for comment.