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Compounding pharmacy says Eli Lilly’s cease and desist letter means “nothing”

Some compounding pharmacies have kept selling GLP-1s that they say are “personalized” or “tailored” for patients’ needs.

J. Edward Moreno

OrderlyMeds, an online pharmacy that sells compounded versions of Eli Lilly’s blockbuster weight-loss drug Zepbound, said the drugmaker’s cease and desist letter means “nothing.”

The Food and Drug Administration declared in December that tirzepatide, the active ingredient in Zepbound, is no longer in a shortage, meaning pharmacies like OrderlyMeds that were selling knockoff versions of the drug can’t sell exact copies. But OrderlyMeds kept selling compounded tirzepatide.

Lilly told them to please stop doing that or we might sue you, otherwise known as a cease and desist letter. OrderlyMeds responded on Friday saying the letter “only reinforces and reinvigorates OrderlyMeds’ mission to provide patients with tailored healthcare solutions, access, and choice.”

Screenshot of OrderlyMeds' website.
Screenshot of OrderlyMeds’ website.

“Rest assured that OrderlyMeds will defend itself and our patients against these attacks that aimed solely at driving shareholder value for Big Pharma, not the individualized needs of you, the patient,” the company said in a statement.

Now that tirzepatide is not in a shortage, compounding pharmacies can only sell it if it’s adjusted for a patient’s needs — for instance, to remove a nonactive ingredient a patient is allergic to or to produce a dose that the patent-holding drugmaker doesn’t. OrderlyMeds says that what it sells is “individualized” and “personalized.”

“So, what does this mean for our patients?” it said in its response to Lilly. “Nothing.”

A Lilly spokesperson told Sherwood News that it will “continue to take action to stop these illegal actors and urgently call on regulators and law enforcement to do the same.”

“The FDA and a federal court have both made clear that compounders ‘must cease production’ of compounded tirzepatide knockoffs, and anyone continuing to sell mass compounded tirzepatide, including by referring to it as ‘personalized,’ ‘tailored,’ or something similar, is breaking the law and deceiving patients,” the spokesperson said.

The argument that compounding pharmacies can continue selling “personalized” versions of lucrative weight-loss drugs is one that’s also being made by Hims & Hers, which has a much larger patient base than OrderlyMeds. Hims sells compounded semaglutide, the active ingredient in Novo Nordisk’s Ozempic and Wegovy, not tirzepatide.

The shortage of semaglutide was declared over in February. According to the Alliance for Pharmacy Compounding, an industry trade group, Novo sent cease and desist letters to pharmacies immediately after the end of the shortage was declared, despite the FDA giving them a 60-day off-ramp period.

There appears to be a legal challenge brewing between drugmakers and compounding pharmacies, which may be able to sue for patent infringement. That type of litigation is risky because if a judge were to rule against the drugmakers, it could risk their patent and the billions they make selling those drugs.

The FDA could step in and decide that these pharmacies aren’t compliant and need to stop. The FDA is now run by Marty Makary, who used to work at Sesame, a telehealth company that sold compounded semaglutide. Also, things seem pretty hectic over at the FDA at the moment.

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Electronic Arts launches a platform to put more ads in its games

Video game publishing giant EA launched a new platform on Monday designed to make the process of selling immersive ad space in its popular games easier.

The company says the platform, called EA Advertising, allows brands to “integrate directly into gameplay through dynamic, real-time placements, from stadium signage to custom in-game content.”

More so than other studios, EA has incorporated advertising into its most popular titles. As Kotaku points out, the company’s ad efforts stretch as far back as 2006. Several of its sports franchises already feature partnerships with brands like Visa, Lowe’s, Red Bull, and PepsiCo.

In-game advertising hasn’t exactly been embraced by fans, but industry experts expect it to ramp up as companies seek more revenue to offset higher games budgets and surging memory costs. EA rival Take-Two has taken a different approach, with CEO Strauss Zelnick recently saying the company was “not at risk of doing brand partnerships” in the forthcoming “Grand Theft Auto VI,” and that ads in full-price games seems “unfair.”

The $55 billion deal to take EA private, led by Saudi Arabia’s Public Investment Fund, is set to close at the end of this month. Being the largest leveraged buyout in history, EA will likely look for more ways to boost revenue to cover interest payments.

More so than other studios, EA has incorporated advertising into its most popular titles. As Kotaku points out, the company’s ad efforts stretch as far back as 2006. Several of its sports franchises already feature partnerships with brands like Visa, Lowe’s, Red Bull, and PepsiCo.

In-game advertising hasn’t exactly been embraced by fans, but industry experts expect it to ramp up as companies seek more revenue to offset higher games budgets and surging memory costs. EA rival Take-Two has taken a different approach, with CEO Strauss Zelnick recently saying the company was “not at risk of doing brand partnerships” in the forthcoming “Grand Theft Auto VI,” and that ads in full-price games seems “unfair.”

The $55 billion deal to take EA private, led by Saudi Arabia’s Public Investment Fund, is set to close at the end of this month. Being the largest leveraged buyout in history, EA will likely look for more ways to boost revenue to cover interest payments.

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JM Smucker says it sold $1 billion worth of Uncrustables in FY2026

After years of booming sandwich sales, JM Smucker has finally earned a billion-dollar crust.

On Tuesday, the company reported results for fiscal year 2026, highlighting better-than-expected profits driven by higher prices for coffee and sweet baked goods. However, at another point on the earnings call, CEO Mark Smucker pointed to one particularly jammy figure: in line with previous forecasts, the company sold $1 billion worth of its (almost always) crustless sandwiches, Uncrustables, in the last year alone.

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Paramount reportedly offers concessions to resolve multistate antitrust investigation

Paramount has reportedly offered up some concessions in an effort to prevent an antitrust lawsuit by California and about 10 other states, according to Bloomberg reporting on Monday.

Reuters first reported on the potential suit from a group of unnamed states last week, which could throw a wrench in Paramount’s plans to buy rival Warner Bros. Discovery in a Hollywood megamerger.

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

$98B ⛽

The IATA released its latest financial outlook for the airline industry over the weekend, forecasting a $98 billion jump in the sector’s collective fuel bill. The world’s largest trade group representing airlines expects the oil spike to halve profits by 49% from last year to $23 billion.

The group also expects profit margins to halve year over year, falling from 2025’s 4.2% to 2%. Still, revenue is expected to climb to $1.17 trillion from $1.07 trillion.

A surge in the cost of jet fuel has rocked US and global airlines this year, leading Delta Air Lines, United Airlines, American Airlines, Southwest Airlines, JetBlue, and others to raise fares and ancillary charges like bag fees. Low-cost carriers, which operate on smaller margins, have been squeezed the hardest, resulting in Spirit’s shutdown.

“It’s a tough year for all airlines, especially those whose balance sheets had not yet recovered from COVID. And, of course, for those operating in the Gulf,” said IATA Director General Willie Walsh, who added that demand is holding up and about half of passengers expect to spend more on travel this year. “That bodes well for a strong northern summer peak season. The big unknown is how long travelers and shippers can tolerate the higher costs of connectivity.”

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