Supply Hurdles and Cost Drive Demand for Compounded Weight-Loss Drugs

Patients seeking Eli Lilly and Novo Nordisk's diabetes and weight-loss drugs face supply issues and high costs, leading them to opt for cheaper compounded versions. Despite a reported sales miss, demand remains strong. The FDA's shortage list plays a pivotal role in the dynamics of this market.

Patients across the United States continue to seek weight-loss and diabetes medications from Eli Lilly and Novo Nordisk, but are encountering supply shortages and insurance challenges, according to healthcare professionals.

These supply issues, coupled with the high cost of these medicines, are driving patients toward more affordable compounded versions available online, affecting the pharmaceutical giants' sales and raising investor concerns. Last week, Eli Lilly reported a notable $1.5 billion sales shortfall in their injectable drugs Zepbound and Mounjaro, sparking fears of diminishing demand.

Although supply chain disruptions are being blamed for the shortfall, doctors report sustained demand, despite insurance hurdles. While the FDA has updated its shortage lists, many patients remain frustrated, fueling the compounded drug market as they seek accessible alternatives.

(With inputs from agencies.)