Judge Dismisses Key Claims in Eli Lilly Lawsuit Against Empower Pharmacy

A federal judge has dismissed part of a lawsuit brought by Eli Lilly against Empower Pharmacy, marking a partial setback in the company’s effort to challenge the sale of compounded versions of its GLP-1 drugs. 

The case centres on Empower’s production and sale of customised versions of tirzepatide-based treatments, including alternatives to Lilly’s products Mounjaro and Zepbound. Lilly alleged that Empower violated federal trademark and state unfair competition laws by selling unapproved versions of its drugs. 

Sim Lake dismissed the federal trademark claims, finding that Lilly had not demonstrated lost sales or “irreparable harm” resulting from the alleged conduct. The court also rejected claims under Texas unfair competition law. However, allegations relating to unfair competition in other states were allowed to proceed. 

The dispute highlights ongoing tensions between pharmaceutical companies and compounding pharmacies, which produce tailored medications without undergoing the same regulatory approval process as branded drugs. Compounded GLP-1 treatments have become widely used, particularly during a period when the U.S. Food and Drug Administration identified a shortage of these drugs. 

Both parties framed the ruling differently. Lilly described it as part of a broader series of cases moving forward against compounding practices, while Empower stated that the dismissal addressed central elements of the lawsuit. 

The case continues, with remaining claims set to be examined in further proceedings.