A PYMNTS Company

Eli Lilly and Novo Nordisk Accused of Blocking Access to Lower-Cost Weight-Loss Drugs

By  |  January 15, 2026

A Texas-based compounding pharmacy has filed a federal lawsuit accusing Eli Lilly and Novo Nordisk of using their market power to restrict access to customized versions of popular weight-loss and diabetes medications, according to Reuters.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Strive Specialties brought the case on Wednesday in the U.S. District Court for the Western District of Texas in San Antonio, alleging that the two drugmakers unlawfully maintained dominance in the fast-growing market for GLP-1 drugs. These medicines, which include Novo Nordisk’s Ozempic and Wegovy and Eli Lilly’s Mounjaro and Zepbound, have seen soaring demand for both diabetes treatment and weight loss, per Reuters.

    The lawsuit claims Lilly and Novo worked to block patients from obtaining lower-cost compounded alternatives, which pharmacies can legally produce during drug shortages by modifying or combining ingredients to meet individual patient needs. Strive argues that such compounded options are especially important when patients require doses or formulations not available through branded products.

    According to Reuters, Strive alleges that the companies entered into exclusive arrangements with major telehealth platforms that effectively prevented doctors using those services from prescribing compounded GLP-1 medications, even when physicians believed tailored treatments were medically necessary. The pharmacy also accuses Lilly of portraying compounded drugs as unsafe and of interfering with Strive’s relationships with payment processors and technology providers.

    Related: Pfizer Files Second Lawsuit Over Novo Nordisk’s Bid for Metsera

    The drugmakers rejected the allegations. Eli Lilly said in a statement that “Strive’s lawsuit is wrong, on both the facts and law, and an attempt to shift focus away from its own conduct.” Novo Nordisk said in a separate statement that “the claims in this litigation are without merit, and we will vigorously defend against them in court.”

    The legal dispute follows earlier action by Lilly, which sued Strive in October in federal court in Arizona. In that case, Lilly accused the pharmacy of falsely advertising some mass-compounded products as clinically proven and personalized.

    Strive maintains that compounding pharmacies stepped in to fill gaps during shortages of branded GLP-1 drugs and continue to offer options that the original manufacturers do not. The company is seeking unspecified monetary damages as well as a court order preventing Lilly and Novo from enforcing the alleged exclusivity agreements, according to Reuters.

    The case is titled Strive Specialties Inc v. Eli Lilly & Co et al, U.S. District Court for the Western District of Texas, No. 5:26-cv-00155. Strive is represented by Courtney Barksdale Perez and Joshua Bennett of Baker & Hostetler, along with David Prichard of Prichard Oliver Montpas.

    Source: Reuters