The news: European regulators are warning consumers about a recent spike in counterfeit versions of Eli Lilly’s and Novo Nordisk’s GLP-1 weight loss drugs.

How we got here: Persistent consumer demand for prescription weight loss drugs across Europe and the US is causing shortages, which are driving an increase in illegal and unregulated knockoffs.

• Following a sharp increase in illegal GLP-1 drugs on Facebook, the European Medical Association (EMA) and Heads of Medicines Agencies (HMA) issued a public health warning.
• In April, the FDA and Novo issued a warning after the seizure of counterfeit Ozempic (semaglutide), and reminded retailers and consumers to only purchase the drug from authorized sources.

For context, the EU and US have different rules on drug compounding. While the EU does not allow compounding even during shortages, the US does. Because of this, US companies like Hims & Hers and Noom were able to sell GLP-1 copycats from 2022 to May.

Zooming out: Lilly and Novo are suing several telehealth companies over sales of compounded tirzepatide (Lilly) and semaglutide (Novo) after the FDA called an end to compounding while there were drug shortages. However, some US compounders maintain they’re providing personalized doses which they say is in line with FDA guidance.

Why it matters: The unprecedented demand for weight-loss drugs continues to surge, leaving the door open for even more illegal and potentially dangerous copycats in Europe and around the world. Europe is especially vulnerable due to the absence of compounding marketers.

Interest in GLP-1s in Europe is flourishing.

• In Germany, for instance, 8% of people have used the drugs for weight loss and another 15% are interested, per a FoodNavigator report.
• Italy’s private market for GLP-1s sales topped $30 billion last year, a 10 times increase over 2020, per Euronews.

Our take: In addition to the physical dangers, illegal GLP-1 drugs create a perception problem, as consumers may not understand the difference between fakes and official products. Drugmakers must continue to educate consumers, disavow the fakes, and double down on anti-counterfeiting measures. In Europe, especially, they need to repeat warnings from regulators and detail the risks to healthcare providers, pharmacies, and consumers.

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