Eli Lilly & Co.’s weight-loss and diabetes drugs, which were previously in shortage, are now back in supply in the US, according to the Food and Drug Administration. This development threatens the knockoff versions that became popular during the shortage period. Lilly has been investing heavily in manufacturing to boost supply of their drugs and has been working to limit the availability of compounded versions, citing concerns about quality and contamination.
While the shortage is over, there may still be some localized supply disruptions as the products move through the supply chain. The FDA’s announcement has implications for compounding pharmacies, which have been making copycat versions of Lilly’s drugs, and telehealth companies that have marketed services to connect patients with these drugs.
Experts estimate that hundreds of thousands of Americans have used copied versions of Lilly’s medicines or similar shots from Novo Nordisk A/S, which have also been in short supply. Overall, the compounded drug industry is estimated to bring in as much as $1 billion a year.
The end of the shortage is expected to limit future compounding, but some may be allowed to continue under other US policies. Patients and prescribers may still experience intermittent supply disruptions as the products make their way to local pharmacies.
Overall, Lilly’s successful resolution of the shortage is expected to have a significant impact on the availability of their drugs and the compounding industry in the US.
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