Eli Lilly resolves weight loss drug shortage, says FDA

Eli Lilly has finally met the soaring demand for its popular weight loss medication, tirzepatide, also known as Mounjaro and Zepbound.

The Food and Drug Administration (FDA) announced on Wednesday that the supply shortage, which began shortly after the drug’s introduction in 2022, has ended.

The milestone restricts compounding pharmacies from making knockoff versions, as federal law bars them from producing drugs not on the shortage list.

Analysts predict the FDA restrictions will significantly impact companies like Hims & Hers, selling copycat versions of the drug for lower prices. The telehealth startup saw its shares drop nearly 10% on Thursday.

Meanwhile, Lilly continues to boost production, planning to increase supply by 25% in the next quarter.