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Pharmaceutical Company Eli Lilly Headquarters
Eli Lilly (Scott Olson/Getty Images)

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

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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Nate Becker

Health insurance stocks lose steam as Trump says he’ll lobby insurers for lower prices

Shares of health insurance companies dropped Friday afternoon, as President Trump said he would ask insurers to meet with him in the coming weeks to seek lower prices.

Stocks including Humana, UnitedHealthcare, Cigna, CVS Health, and Elevance Health all either pared gains or went further into the red after Trump’s remarks, which came at the end of a press event to announce pricing deals with nine drugmakers.

“I’m going to call a meeting of the big insurance companies that have gotten so rich,” Trump said, noting that he would lobby them for lower prices.

“I would say that maybe with one talk, they would be willing to cut their prices by 50, 60, or 70%. They’ve made a fortune.”

markets

Rivian’s surge continues as stock reaches highest level since December 2023 on analyst upgrades

Shares of EV maker Rivian are on pace to close up double digits for the second day in a row on Friday as bullish investors pour into the stock following analyst upgrades.

Rivian shares were up more than 10% on Friday afternoon, with the stock climbing to its highest level since December 2023.

Webush’s Dan Ives boosted his Rivian price target by 56% to $25 in a note on Friday morning. The analyst wrote that 2026 is a “prove-me” year for the automaker, with its lower-cost R2 model set to launch in the first half.

Ives’s note follows a separate optimistic bit of analysis from Baird, which also boosted its Rivian price target to $25 in a note on Thursday.

If today's gains hold, Friday will mark the third day of double-digit gains for Rivian in the past six trading days. An “AI Day” event that saw the automaker detail autonomous updates and tease a robotaxi plan started the recent run.

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Luke Kawa

The neoclouds are shooting back up into the stratosphere

Investors’ faith in tech CEOs’ pursuit of digital God has seemingly been restored for now, sparking an intense rally in the speculative AI players that had been in full-on meltdown mode over concerns that the boom had passed its best-before date.

The data center companies colloquially known as the “neoclouds” — CoreWeave, Nebius, IREN, and Cipher Mining — are up more than double digits over the past two sessions, as of 10:40 a.m. ET.

The past 48 hours have brought a steady drumbeat of positive news for the AI theme.

CoreWeave received a vote of confidence from Wall Street as Citi resumed coverage with a buy rating and price target of $135. Oracle, the epicenter of AI credit concerns, has seen a reversal in its fortunes as it nears an acquisition of TikTok’s US operations. And OpenAI’s fundraising efforts appear be going so well that its reported valuation has gone up in back-to-back days.

Before that, Micron’s earnings reaffirmed the intense demand for AI compute, which continues to outstrip supply — a positive sign for the neoclouds. The macro backdrop is also turning perhaps a bit more in favor of lower interest rates, as CPI inflation came in well below expectations.

Snoop Dogg Performs At OVO Hydro Glasgow

Marijuana rescheduling could mean more investment in US weed stocks. There aren’t many ways in.

“Yes, institutional capital will go into the underlying names. The question is: How fast?" one weed company chairman said.

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