Eli Lilly vs. Novo Nordisk: The pros deliver their verdict on the viral weight-loss stocks
CNBCNov 27, 2023
Eli Lilly Sues Alleged Purveyors of Counterfeit Mounjaro
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The Facts
On Thursday, American drugmaker Eli Lilly said it filed six separate lawsuits against those it claims are selling products containing tirzepatide, the active ingredient in their diabetes drug, Mounjaro, and weight-loss prescription, Zepbound.
Eli Lilly alleges that spas and wellness centers are selling counterfeit or compounded versions of tirzepatide. They claim that the accused falsely labeled their products as Mounjaro or Zepbound or as having US Food and Drug Administration (FDA) approval.
The Spin
Narrative A
A broken insurance and medical system in America has driven desperate patients to counterfeit weight loss drugs. Over 40% of Americans are obese, and they are being shut out by cost-averse insurers and a recalcitrant federal government, which treats obesity drugs as cosmetic interventions rather than medical ones. It would be much better to allow insurers and Medicare to negotiate for these drugs in bulk — prices would be driven down as generics and cheaper versions are gradually introduced.
Narrative B
Drug counterfeiting is a scourge that involves multinational criminals and middlemen who illicitly divert pharmaceuticals from the supply chain. This problem isn't due to the failures of insurers or manufacturers but to the poor enforcement of the law and bad policy. By declaring a shortage of weight-loss drugs, the FDA opened the floodgates to compounders, who began hawking drugs of varying quality. As these drugs have now entered the legitimate supply chain, expanding access would do more harm than good.
Metaculus Prediction
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