The Zhitong Finance App learned that a federal judge in Texas recently dismissed an antitrust lawsuit filed by a compound pharmacy against LLY.US (LLY.US) and Novo Nordisk (NVO.US). The pharmacy previously accused the two companies of violating US antitrust laws by establishing exclusive partnerships with telemedicine platforms to restrict doctors from prescribing customized compound versions of their GLP-1 weight-loss drugs.
U.S. District Court Judge Micaela Alvarez for the Western District of Texas handed down a ruling on Thursday to dismiss the lawsuit filed by the compound pharmacy Strive Specialties in response to Lilly and Novo Nordisk's previous application to withdraw the lawsuit.
Strive alleges in the lawsuit that Eli Lilly and Novo Nordisk reached exclusive cooperation agreements with major telemedicine platforms, making it impossible for doctors on these platforms to prescribe customized compound versions of the two companies' star GLP-1 drugs, which is suspected of excluding competition and violating US antitrust law.
However, according to Judge Alvarez, Strive failed to prove that it had suffered damage within the meaning of the antitrust law. The court stated that the compound GLP-1 drug produced by Strive did not belong to the same relevant market as the branded drug sold by Eli Lilly and Novo Nordisk, so there was no legal basis for its antitrust claims.
Currently, Eli Lilly's weight loss drug Zepbound is the main active ingredient, while Novo Nordisk's Wegovy uses simeglutide as the active ingredient.
Strive expressed disappointment with the court ruling and told the media that the company is still confident in its legal position and is evaluating next steps, including the possibility of filing an appeal.
Eli Lilly, on the other hand, stated that “this unfounded lawsuit should not have been brought against Lilly.” The company further stated that the ruling “confirmed that companies preparing terpotide compounds on a large scale violated relevant laws.”
Novo Nordisk also welcomed the court's rejection of all lawsuits and said the company will continue to focus on its mission to provide patients with innovative treatment options.
As of press release, LY.US (LLY.US) fell 1.36% to $1175.68; Novo Nordisk rose 2.33% to $47.04.