The Weight-Loss Battle That Could Rattle Eli Lilly's $100 Billion Market

Blockhead12-05

An age-old battle in pharmaceuticals could further rattle Eli Lilly (LLY) stock and its potential $100 billion market in weight-loss drugs. The showdown centers on compounders, companies allowed to ...

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The showdown centers on compounders, companies allowed to ...</p>\n\n<a href=\"https://www.investors.com/news/technology/eli-lilly-stock-weight-loss-drugs-compounded-semaglutide-tirzepatide/\">Source Link</a>\n\n</div>\n","source":"investor_business_daily_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The Weight-Loss Battle That Could Rattle Eli Lilly's $100 Billion Market</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe Weight-Loss Battle That Could Rattle Eli Lilly's $100 Billion Market\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-05 21:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.investors.com/news/technology/eli-lilly-stock-weight-loss-drugs-compounded-semaglutide-tirzepatide/><strong>Blockhead</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>An age-old battle in pharmaceuticals could further rattle Eli Lilly (LLY) stock and its potential $100 billion market in weight-loss drugs. The showdown centers on compounders, companies allowed to ...</p>\n\n<a href=\"https://www.investors.com/news/technology/eli-lilly-stock-weight-loss-drugs-compounded-semaglutide-tirzepatide/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0321505868.SGD","symbol_name":"Schroder ISF Global Dividend Maximiser A Dis SGD","start_time":0,"source_url":"https://www.investors.com/news/technology/eli-lilly-stock-weight-loss-drugs-compounded-semaglutide-tirzepatide/","article_id":"2489456011","we_media_id":null,"thumbnails":["https://www.investors.com/wp-content/uploads/2024/12/TECH1_mounjaro_120624_Shutter-150x150.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2489456011","pubTimestamp":1733403625,"columns":[],"sourceInfo":{"source_id":"investor_business_daily_highlight","name":"Investor’s Business Daily"},"weMediaInfo":null,"summary":"An age-old battle in pharmaceuticals could further rattle Eli Lilly stock and its potential $100 billion market in weight-loss drugs.","collect":0,"end_time":0,"defaultTopTitle":"investors.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0321505868.SGD":"Schroder ISF Global Dividend Maximiser A Dis SGD","LU2237443978.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","CTLT":"Catalent","LU1069344957.HKD":"AB SICAV I - AMERICAN GROWTH PORTFOLIO \"AD\" (HKD) INC","BK4530":"医药外包概念","NVO.AU":"NOVO RESOURCES CORP-CDI","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","BK4532":"文艺复兴科技持仓","LU0672654240.SGD":"FTIF - Franklin US Opportunities A Acc SGD-H1","LU0006306889.USD":"SCHRODER ISF US LARGE CAP \"A\" (USD) INC AV","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU0097036916.USD":"贝莱德美国增长A2 USD","IE00BK4W5M84.HKD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (HKD) ACC","LU0882574139.USD":"富达环球消费行业基金A ACC","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","BK4128":"药品零售","LU1059921491.USD":"NORDEA 1 GLOBAL STABLE EQUITY \"HB\" (USDHDG) ACC","LU0096364046.USD":"CT (LUX) I AMERICAN \"DU\" (USD) ACC","LU2361045086.USD":"WELLINGTON US QUALITY GROWTH \"A\" (USD) ACC","NVO":"诺和诺德","BK4533":"AQR资本管理(全球第二大对冲基金)","LU1291159041.SGD":"CPR Invest - Global Silver Age A2 Acc SGD-H","SGXZ31699556.SGD":"UGDP UNITED GLOBAL QUALITY GROWTH \"C\" (SGDHDG) ACC","WBA":"沃尔格林联合博姿","SG9999014906.USD":"大华全球优质成长基金Acc USD","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","CVS":"西维斯健康","SG9999001176.USD":"United Global Healthcare Acc USD","LU2237443895.HKD":"abrdn SICAV I -  GLOBAL DYNAMIC DIVIDEND \"A\" (HKD) ACC","SG9999015978.USD":"利安颠覆性创新基金A","CVS.AU":"Cervantes Corp Ltd","LU0211331839.USD":"FRANKLIN MUTUAL GLB DISCOVERY \"A\" (USD) ACC","WBA.AU":"Webster Ltd","BK4550":"红杉资本持仓","LU0354030438.USD":"富国美国大盘成长基金Cl A Acc","LU2491049909.HKD":"WELLINGTON SUSTAINABLE OUTCOMES \"A\" (HKD) ACC","LLY":"礼来","SG9999014914.USD":"UNITED GLOBAL QUALITY GROWTH (USDHDG) INC","SGXZ57979304.SGD":"United Global Healthcare A Acc SGD-H","SGXZ51526630.SGD":"大华环球创新基金A Acc SGD","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","LU0109391861.USD":"富兰克林美国机遇基金A Acc","LU0456855351.SGD":"JPMorgan Funds - Global Equity A (acc) SGD","HIMS":"Hims & Hers Health Inc.","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD","LU2461242641.AUD":"WELLINGTON US QUALITY GROWTH \"A\" (AUDHDG) ACC","LU1127390331.HKD":"AB SICAV I - ALL MARKET INCOME PORTFOLIO \"A\" (HKD) ACC","LU1093756325.SGD":"FTIF - Franklin K2 Alt Strat Fd A (acc) SGD-H1"},"translate_title":"这场减肥之战可能会扰乱礼来公司1000亿美元的市场","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"WBA.AU":1,"WBA":1,"CTLT":1,"CVS":1,"CVS.AU":1,"HIMS":1,"NVO":1,"NVO.AU":1,"LLY":1},"content_text":"An age-old battle in pharmaceuticals could further rattle Eli Lilly (LLY) stock and its potential $100 billion market in weight-loss drugs. The showdown centers on compounders, companies allowed to create knockoffs of drugs to offset shortages.\nThe battle took a turn in October when the Food and Drug Administration removed tirzepatide from its drugs shortage list, stoking fury and panic among doctors, patients and compounding pharmacies. The removal means compounders can no longer make their versions of tirzepatide — sold as an obesity medication called Zepbound and in diabetes treatment as Mounjaro.\n\n\n\n↑\nX\n\n\n\n\nThe Weight-Loss Drug Market Is Hot. Which Medical Stock Will Win The Battle For Supremacy?\n\n\nSee All Videos\n\n\n\n\nNOW PLAYING\nThe Weight-Loss Drug Market Is Hot. Which Medical Stock Will Win The Battle For Supremacy?\n\n\n\n\nBut then the FDA reversed course after a group representing compounders, the Outsourcing Facilities Association, filed a lawsuit. They say tirzepatide remains in short supply. Compounders can continue to make tirzepatide while the agency further analyzes the potential shortage.\nLilly contends it has enough manufacturing to keep up with sky-high demand for its diabetes and weight-loss drugs. Novo Nordisk (NVO), which makes rival meds Wegovy and Ozempic, argues it's dangerous for compounders to knock off its branded drugs.\nBut compounders disagree.\nIn two months during the third quarter, nearly 80,000 people have struggled to find the branded versions of these drugs, according to Hims & Hers Health (HIMS), which compounds semaglutide. Semaglutide is the active ingredient behind Wegovy and Ozempic.\n\"I don't think anyone anticipated the demand that these drugs brought forth when they were FDA approved,\" Jayne Hornung, chief clinical officer of health care consulting firm MMIT, told Investor's Business Daily.\nEli Lilly Stock: Facing Off With Compounders\nBy making copycat versions of branded drugs with FDA approval, compounding pharmacies are eyeing a fast-growing market that has grappled with shortages.\nSemaglutide hit the FDA's drugs shortage list in March 2022. The FDA determined Lilly's tirzepatide was in shortage in December 2022, shortly after Mounjaro won approval in May that year. Later, the weight-loss drug Zepbound gained approval in November 2023.\nLilly and Novo have invested heavily to expand their manufacturing capacity to keep pace with the incredible demand for their drugs. Last June, Novo announced a $4.1 billion investment to grow its manufacturing footprint in the U.S. That followed its $16.5 billion plan to acquire Catalent (CTLT) in February. Lilly put up $9 billion in May to boost production of tirzepatide and other medicines in Indiana.\n\"Our current manufacturing investment of over $20 billion in the past four years is the most significant in our history, and will allow us to continue increasing capacity to safely bring these medicines to people who need them,\" a Lilly spokesperson said in an email to IBD.\nBut both companies have struggled recently. Eli Lilly stock tumbled more than 6% on Oct. 30 after sales of Mounjaro and Zepbound missed third-quarter expectations. The duo generated a combined $4.37 billion in sales, but lagged calls for $5.49 billion, according to FactSet. Novo tightened its outlook after Wegovy beat projections at $2.53 billion, but $4.36 billion in Ozempic sales missed.\nMeanwhile, Hims & Hers — an online pharmacy that compounds semaglutide — topped sales views, noting the \"robust\" trajectory in weight-loss drugs.\nWeight-Loss Drugs In Shortage — Or Not?\nIt's unclear how the FDA determined tirzepatide is no longer in shortage, MMIT's Hornung said.\nBut the decision left patients scrambling to figure out their next move, said Matthew Montes de Oca, chief clinical officer for Strive Pharmacy, a specialty compounding pharmacy.\nStrive makes copies of both semaglutide and tirzepatide. The company had been focused mainly on anti-aging and longevity meds. But in the early days of the shortages, Strive stepped in when doctors said they couldn't find semaglutide or tirzepatide at retail pharmacies operated by Walgreens Boots Alliance (WBA) or CVS Health (CVS).\nAs of the end of October, Strive had filled more than 800,000 prescriptions this year for these drugs. Montes said that number likely includes repeat prescriptions. In other words, it's hard to tell how many individual patients Strive is serving.\nSo when the FDA said tirzepatide was no longer in shortage, the calls starting pouring in, he said.\n\"Patients were freaking out,\" he said in an interview with IBD. \"They had nowhere to go. They started calling their local pharmacies and they couldn't get the medication either. Neither could we. We've even tried to sign up with other wholesaler distributors to see if they had it and unfortunately it was the same thing.\"\nMargie Perez, senior customer success sales associate at Olympia Pharmaceuticals, says she was taken aback by the FDA decision. Olympia compounds GLP-1 drugs. Perez is using the company's tirzepatide product. She started treatment with the compounded drug, rather than looking for the branded version from Eli Lilly.\n\"I was a little shocked, as it felt very sudden,\" she said in an email to IBD. \"Working at a company that compounds it, the convenience was really appreciated.\"\nEli Lilly Stock Vs. Bespoke Meds\nThere are reasons beyond the shortage that patients might elect to get their weight-loss drugs through a compounding pharmacy, Strive's de Oca says.\nCompounded medicines can be made in big batches or individualized to the patient. The latter allows patients to slowly increase the dosage to avoid side effects. Weight-loss drugs that interact with the GLP-1 hormone — like semaglutide and tirzepatide — are usually tied to gastrointestinal side effects.\n\"If they're forced to go back to a pen (with the branded version), they won't be able to maintain those custom doses they can achieve with the compounded products,\" de Oca said.\nFurther, compounded drugs are generally less expensive than their branded counterparts. Compounders buy their ingredients in bulk and run testing to ensure the products are up to par. But unlike Eli Lilly and Novo Nordisk, the companies aren't trying to recoup the costs to develop the weight-loss drugs.\nOlympia's Perez says the lower price point \"was a big help.\"\n\"I think that greatly helps with patient accessibility,\" she said.\nCompounders Could Take A Hit\nJoshua Fritzier, director of sales and finance for Olympia, says the compounding company wants to make semaglutide and tirzepatide affordable for patients. The duo account for roughly 30% of the compounding pharmacy's sales. But some compounders have shifted their business strategy to focus almost entirely on weight-loss drugs.\n\"I'm sure a lot will go away or have to pivot,\" he told IBD. \"Financially, we're going to be OK. Our company is concerned with patient care. That's where this will impact the industry.\"\nThis is where Strive sits.\n\"GLP-1s have expanded Strive's footprint pretty large during this time period,\" Strive's de Oca said. \"It's a decent amount of business for us so (removing tirzepatide from the shortage list) would be a hit.\"\nIt's important to note, insurance companies aren't required to cover the costs of weight-loss drugs.\nZepbound goes for about $1,060 a month before insurance kicks in. Wegovy costs $1,349 monthly.\nLilly has done some work to offer lower-cost versions of its popular weight-loss drug. In August, the company announced it would sell vials of tirzepatide for $399 to $549 per month, depending on the dosage. Patients must use a syringe, which aligns with compounded products. Eli Lilly stock inched up a fraction that day.\nCopycat Weight-Loss Drugs\nIt's unclear what evidence Lilly provided to the FDA to prove tirzepatide is no longer in shortage.\n\"We have worked cooperatively with FDA to ensure it has the information it needs to assess the availability of our medicines,\" Lilly's spokesperson said.\nBut MMIT's Hornung says \"it's in Lilly's best interest\" from a revenue perspective to say it can fulfill the demand for tirzepatide.\nNow, the FDA is reinvestigating whether tirzepatide is in shortage, or not.\nBoth companies have argued against the use of compounded versions of their drugs.\nIn June, Eli Lilly warned \"non-Lilly tirzepatide can put people at risk.\" The warning included unsafe versions of Mounjaro, Zepbound or tirzepatide from \"illegal online pharmacies.\"\n\"Although compounding is permitted in limited circumstances for individual patient needs, people should understand that compounded drugs are never FDA-approved,\" the company said. \"FDA has expressly stated 'compounded drugs pose a higher risk to patients than FDA-approved drugs,' and that the 'unnecessary use of compounded drugs exposes patients to potentially serious health risks.' \"\nOlympia's Fritzier and Strive's de Oca, on the other hand, say compounders have to follow stringent rules to sell compounded versions of brand-name drugs. It takes Strive seven months to compound a batch of these weight-loss drugs, thanks to the strenuous testing process, de Oca said.\n\"Prior to this, there was still a stigma around us that we might be making stuff in our garage next to the lawn mower,\" he said.\nNovo Asks FDA To Ban Knockoffs\nNovo Nordisk, meanwhile, called out 619 adverse events linked to compounded copies of semaglutide. That led to 144 hospitalizations and 12 deaths, according to the FDA's Adverse Event Reporting System.\nThat could represent just a small portion of problematic semaglutide knockoffs, a Novo Nordisk spokesperson said in an email to IBD. Compounders don't have to report side effects to the FDA.\nRecently, Novo asked the FDA to ban compounding pharmacies from making copies of its diabetes and weight-loss drugs. The FDA has yet to make a final decision. The company notes that all versions of Ozempic and Wegovy are now listed as \"available\" on the FDA's drugs shortage list.\nThe tirzepatide shortage is now listed as \"resolved.\" But the FDA noted that doesn't mean Lilly's drugs will be readily available at every pharmacy.\nNovo Nordisk's spokesperson echoed the same sentiment.\n\"It's important to note that availability doesn't always mean immediate accessibility at every pharmacy,\" the spokesperson said. \"Patients may experience variability at specific locations, regardless of whether a drug is in shortage.\"\nEli Lilly Stock Under Pressure\nRemoving tirzepatide from the FDA's drugs shortage list means some compounding pharmacies will have to stop producing knockoffs immediately. Others will have 60 days to ramp down their efforts.\nThat's a short window for patients to find alternatives, says MMIT's Hornung.\n\"There's a large impact in this FDA decision that I don't think the FDA really thought about,\" she said.\nThe FDA didn't return a request from IBD for comment.\nMeanwhile, Eli Lilly stock remains under pressure following its third-quarter miss.\nShares have a middle-of-the-road Composite Rating of 73, according to IBD Digital. That puts the stock narrowly below the top quarter of all stocks when it comes to fundamental and technical measures. Novo shares have a lower CR of 55.\nFollow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.\nYOU MAY ALSO LIKE:\nMerck Spends Up To $3.3 Billion In An Insurance Policy Against Summit Therapeutics\nAvidity Bio Has Surged 416% This Year — And That's Before Today's 'Game-Changing' News\nIBD Stock Of The Day: See How To Find, Track And Buy The Best Stocks\nProfit From Short-Term Trends With SwingTrader\nLearn How To Time The Market With IBD's ETF Market Strategy","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2489456011"}