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Blocked From Selling Off-Brand Ozempic, Telehealth Startups Embrace a Less Effective Drug

The Owner Press by The Owner Press
May 18, 2025
in The Boardroom
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After telehealth startups just lately misplaced the power to promote exact copies of patented GLP-1 weight-loss medicine, some corporations have begun turning to a special, much less efficient medicine that has been in the marketplace in the US since 2010. Usually thought of a precursor to blockbuster merchandise like Novo Nordisk’s Ozempic and Eli Lilly’s Zepbound, liraglutide is turning into the brand new darling of online clinics providing prescription weight reduction and diabetes meds—regardless of its relative outdated age.

Initially offered by Novo Nordisk below the model names Victroza and Saxenda, the drug has been out there in generic type within the US since final yr. Like Ozempic, liraglutide is a GLP-1 agonist that mimics a naturally occurring hormone and works by suppressing starvation cues and regulating insulin ranges. Nevertheless it doesn’t have the identical identify recognition or recognition because the newer GLP-1 medicine for a quite simple cause: It does not work as properly, may cause extra extreme uncomfortable side effects, and sufferers must inject it day by day quite than weekly.

The FDA decided earlier this yr that patented medicines like Zepound and Ozempic had been now not in scarcity, ending provisions that allowed on-line clinics to promote off-brand, compounded variations of the medicine. As clinics and producers wind down gross sales of these compounds, many on-line clinics and producers are embracing liraglutide. Main telehealth firm Hims added generic liraglutide to its lineup final month, becoming a member of over a dozen rivals already providing the product in compounded, generic, or name-brand kinds.

Giant compounding pharmacies, like Florida-based Olympia Prescribed drugs, are already pivoting to producing the medicine, anticipating that demand will rise. “We’ve signed some fairly giant contracts for liraglutide,” says chief monetary officer Joshua Fritzler. “We are able to deal with it type of the identical means we handled semaglutide and tirzepatide,” the energetic components in Ozempic and Zepbound. Fritzler says Olympia plans to start ramping up manufacturing this summer time.

GLP-1 medicines like Ozempic and Zepbound have been heralded for his or her unparalleled success in treating weight problems and kind 2 diabetes. Researchers consider in addition they have the potential to assist sufferers affected by all kinds of different circumstances, from habit to Parkinson’s. After demand for GLP-1s exploded lately, the FDA declared that a few of the name-brand variations had been formally in scarcity. That meant docs might legally prescribe cheaper “compounded” variations of semaglutide and tirzepatide with the identical energetic components because the originals.

Compounding pharmacies and telehealth startups flourished promoting these different GLP-1 merchandise on-line, attracting hundreds of thousands of shoppers who couldn’t afford or had been unwilling to pay greater costs for the name-brand medicines, that are incessantly not coated by insurance coverage. Now, the shortages for both these meds have ended. The FDA’s grace interval for producers to cease producing and promoting compounded tirzepatide is over, and the deadline for semaglutide is Could 22. Liraglutide, although, has been in shortage since April 2023, so the compounders are free to maintain making it.

Some telehealth corporations are persevering with to supply compounded medicines they are saying aren’t technically direct copies of patented medicine as a result of they arrive in personalized doses or with added nutritional vitamins. Eli Lilly has already sued some of them, alleging that these variations are unlawful. Different telehealth corporations and compounders are enjoying it protected, ceasing gross sales altogether. (Olympia, for instance, is stopping manufacturing of semaglutide.)



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