Lilly settles with spa selling knockoff versions of its popular diabetes, weight-loss drugs

Eli Lilly and Co. has entered a settlement agreement with a South Carolina medical spa that was selling knockoff versions of its popular diabetes treatment Mounjaro and weight-loss treatment Zepbound.

The Indianapolis-based drugmaker said Tuesday the agreement with Totality Medispa, based in Charleston, South Carolina, included an undisclosed monetary payment.

In a series of lawsuits Lilly filed in September and October in federal court, the drugmaker had accused Totality Medispa and other companies of trademark infringement, false advertising, unfair competition and unfair trade practices.

According to the suits, Lilly never sold Mounjaro or Zepbound to the spa for resale or redistribution. Lilly said the spa sold unapproved versions of the drugs that were made by compounding pharmacies, which are not approved by the Food and Drug Administration.

Mounjaro or Zepbound are identical, using the same active ingredient, tirzepatide, although they are sold under different brand names for separate uses.

According to one Instagram promotion, the spa showed a photo of a Mounjaro package, and an unidentified woman claims the spa sells the medicine “for a fraction of the price.”

“Defendant’s website and Instagram page convey the unmistakable impression that Defendant is offering for sale injections of Lilly’s Mounjaro medicine,” one suit, filed in South Carolina federal district court in September said.

The spa never filed an answer to that complaint, according to the docket.

Lilly said it was concerned that the knockoff products could expose patients to serious health risks. In at least one instance, the product was nothing more than sugar alcohol, the drugmaker said.

According to a proposed final judgement filed in the case this week, Totality Medispa agreed to stop using Lilly’s trademarked product names in its advertising, marketing, sales or promotions.

The company also agreed to obtain and distribute only compounded tirzepatide products that are produced in compliance with federal law, and report to the FDA any adverse events.

The spa must also not make any statement suggesting that its products are genuine, FDA-approved products.

The agreement had yet to be approved and posted by a federal judge as of Wednesday morning, according to the federal docket.

“While this agreement is an important step forward, this is not a problem that Lilly can solve alone,” the drugmaker said in a statement. “We strongly support state and federal regulators taking action to deter and punish compounding pharmacies, counterfeiters and others who put patients at risk by selling unsafe products claiming to be tirzepatide.”