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Eli Lilly sues telehealth sites selling copycat Zepbound

The lawsuits target platforms selling compounded versions of name-brand weight-loss drugs even after the government declared a shortage of them was over.

J. Edward Moreno
4/23/25 9:22AM

Eli Lilly sued four telehealth platforms selling copycat versions of its blockbuster weight-loss drug Zepbound, a move that could foreshadow more legal actions against these kinds of companies.

In four separate lawsuits filed Wednesday, Lilly accused Mochi Health, Fella Health, Willow Health, and Henry Meds of continuing to sell knockoff Zepbound even after tirzepatide, the active ingredient in the drug, was taken off the Food and Drug Administration’s shortage list in December.

During a shortage, compounding pharmacies are able to sell exact copies of drugs to fill in gaps in supply. Outside of a shortage, compounding pharmacies can only make adjusted versions of patented drugs, such as a dose that the drugmaker doesn’t make or a version that removes ingredients the patient is allergic too.

Lilly says the telehealth platforms are taking advantage of that loophole to mass produce slightly adjusted versions of their drugs and telling patients they’re “personalized” or “tailored” for them. Mochi, Fella, Willow, and Henry did not immediately respond to requests for comment.

Notably absent from the suits is OrderlyMeds, which recently responded to a cease and desist letter from Lilly by saying meant "nothing."

The lawsuits could be a bad sign for Hims & Hers, which does not sell compounded versions of Lilly’s drugs but does sell semaglutide, the active ingredient in Novo Nordisk’s Ozempic and Wegovy.

Similar to the pharmacies sued by Lilly, Hims offers its users “personalized” versions of semaglutide. That ingredient was taken off the FDA’s shortage list in February, and the off-ramp for outsourcing pharmacies like those that Hims works with ends on May 22.

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CFO Burt Podbere said the company expects its fiscal year 2027 net new annual recurring revenues to grow more than 20%, an increase that would put the figure well past analyst estimates.

Assuming Wall Street’s consensus for the company’s net new ARR in fiscal 2026 ($940.3 million) is met, the company is essentially guiding for $1.13 billion in net new ARR for fiscal ’27. Wall Street was expecting $1.05 billion.

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