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

by Investor News Today
May 15, 2025
in Technology
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Blocked From Selling Off-Brand Ozempic, Telehealth Startups Embrace a Less Effective Drug
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After telehealth startups just lately misplaced the flexibility to promote actual copies of patented GLP-1 weight-loss medication, some corporations have begun turning to a distinct, much less efficient treatment that has been in the marketplace in the US since 2010. Usually thought-about a precursor to blockbuster merchandise like Novo Nordisk’s Ozempic and Eli Lilly’s Zepbound, liraglutide is changing into the brand new darling of on-line clinics providing prescription weight reduction and diabetes meds—regardless of its relative outdated age.

Initially offered by Novo Nordisk beneath the model names Victroza and Saxenda, the drug has been accessible in generic type within the US since final 12 months. Like Ozempic, liraglutide is a GLP-1 agonist that mimics a naturally occurring hormone and works by suppressing starvation cues and regulating insulin ranges. But it surely doesn’t have the identical title recognition or recognition because the newer GLP-1 medication for a quite simple motive: It does not work as properly, may cause extra extreme unwanted side effects, and sufferers must inject it day by day fairly than weekly.

The FDA decided earlier this 12 months that patented drugs like Zepound and Ozempic have been now not in scarcity, ending provisions that allowed on-line clinics to promote off-brand, compounded variations of the medication. 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 opponents already providing the product in compounded, generic, or name-brand kinds.

Massive compounding pharmacies, like Florida-based Olympia Prescribed drugs, are already pivoting to producing the treatment, 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 form of the identical means we handled semaglutide and tirzepatide,” the energetic substances in Ozempic and Zepbound. Fritzler says Olympia plans to start ramping up manufacturing this summer season.

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

Compounding pharmacies and telehealth startups flourished promoting these different GLP-1 merchandise on-line, attracting tens of millions of consumers who couldn’t afford or have been unwilling to pay larger costs for the name-brand drugs, that are continuously not lined by insurance coverage. Now, the shortages for each these meds have ended. The FDA’s grace interval for producers to cease producing and promoting compounded tirzepatide is over, and the closing date for semaglutide is Might 22. Liraglutide, although, has been in scarcity since April 2023, so the compounders are free to maintain making it.

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



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