Compounder Says Lilly, Novo Nordisk Violate Antitrust
Strive Specialties, a compounding pharmacy headquartered in Arizona with offices, staff, and customers in Texas, has filed a lawsuit in a Texas federal court, charging that Eli Lilly and Novo Nordisk are violating antitrust laws in their marketing of glucagon-like peptide 1 agonist (GLP-1) drugs, which are indicated for weight loss. Strive says it competes by compounding personalized GLP-1 drugs at lower prices, and says Lilly and Novo Nordisk’s actions have restricted competition and harmed patient access to affordable medications.
Competition between the innovator companies and compounding pharmacies led to the innovators creating online pharmacies that sell GLP-1 drugs at reduced prices, Strive says, but don’t address the clinical needs of patients who need personalized versions of the drugs. It also claims the two companies entered into exclusive agreements with telehealth providers that barred them from working with compounding pharmacies.
According to the complaint, Lilly disparaged compounded drugs by saying they were “always illegal,” and sought to interfere with Strive’s relationship with third-party technology platforms and payment processors.
“Eli Lilly and Novo Nordisk’s conduct is illegal under the United States’ antitrust laws,” Strive says. “It is meant to preserve their supracompetitive prices by forestalling all competition, no matter how small…. As a result, patients are forced to pay inflated prices and suffer reduced access to GLP-1 medicines, particularly personalized versions of those medicines. Strive seeks to restore competition to the world of GLP-1 medicines, allowing patients to benefit from improved access and lower costs.”