The Food and Drug Administration (FDA) of the usa announced, $Eli Lilly and Co (LLY.US)$ The shortage issues of the popular weight loss and diabetes drugs Zepbound and Mounjaro have been resolved, which may impact the market for generic alternatives. Previously, due to drug shortages, the FDA allowed pharmacies to sell untested generic versions. Eli Lilly and Co has been increasing investments to improve drug supply, including constructing a new manufacturing facility in Indiana.

Eli Lilly and Co's weight loss drug Zepbound and diabetes drug Mounjaro had led to numerous counterfeit products in the U.S. market due to supply shortages. However, with the FDA announcing the resolution of shortage issues, the popularity of generic alternatives may face challenges. By the end of 2022, the FDA implemented shortage classifications for the first time, allowing pharmacies to sell generic versions of these drugs without undergoing the same rigorous testing process. These generics are widely used in medical spa centers and telemedicine companies, typically at lower prices.

It is understood that Eli Lilly and Co has been actively investing in manufacturing capabilities to increase the supply of its popular drugs. The company is investing $4.5 billion in a new manufacturing facility in Indiana to produce drugs for future clinical trials, as part of its extensive efforts to strengthen the supply chain. The first such facility will be located in Lebanon, about 27 miles from Eli Lilly's Indianapolis headquarters. Lilly is also constructing two additional facilities in the town, with a total investment of up to $13.5 billion.

Although Eli Lilly and Co has stated that all doses of Zepbound and Mounjaro are now available for purchase, the complexity of the supply chain means that the ability for patients to find specific doses at pharmacies may still vary. Patrik Jonsson, Executive Vice President and President of Eli Lilly's Cardio-Metabolic Health and usa business, stated in a release that the company is investing heavily to expand production and bring new choices to the market.

Experts estimate that hundreds of thousands of Americans use generic versions of Eli Lilly drugs or similar medications from Novo Nordisk a/s. According to investment bankers working with the industry, the manufacturers of these combination drugs generate annual revenues as high as $1 billion.

The shortage of combination drugs has also attracted the attention of telemedicine companies, promoting services that connect patients with healthcare providers who can prescribe medications. With the end of shortages, future production of combination drugs may face restrictions, but under other usa policies, some production of combination drugs may be allowed to continue.

The FDA's statement does not mean that this pharmaceutical will be available everywhere. The institution points out that during the supply chain process from manufacturers to distributors to local pharmacies, patients and prescribers may still encounter intermittent local supply interruptions.

Editor/Lambor