Compounding Pharmacies, Telehealth Startups Target 'Grey Market' for Popular Weight Loss Drugs

 By Priya Batchu

Seeking to capitalize on the massive success of weight loss drugs like Ozempic, some compounding pharmacies and telehealth startups are offering compounded GLP-1–based products, a "grey market" that has attracted lawsuits from pharmaceutical giants and raised regulatory concerns.

Current companies like Biogen and Eli Lilly are focusing on the next round of their medications, including oral pills and strategies to help preserve lean muscle mass. 

Early in the GLP-1 hype, users reported a loss of lean muscle alongside fat loss, raising health concerns given muscle’s role in the body’s metabolism and strength and mobility. 

According to Morgan Stanley, the weight- loss medication market is forecast at $62.85 billion in 2025, and is projected to grow at 17.5% CAGR by 2034. 

GLP-1s were originally developed for patients with Type 2 diabetes. There is a subset of these medications called semaglutide tirzepatide, that is being used for weight loss. 

The current big players are Eli Lilly  and Novo Nordisk, which together dominate the market.

Eli Lilly has announced a $6.5 billion dollar manufacturing plan in Texas, amid plans to with their anticipatory medication shifting from the iconic injectable GLP-1s toward an oral version, the Wall Street Journal reported. 

There are also studies showing a combination of GLP-1s such as bimagrumab and semaglutide may preserve muscle mass while targeting fat loss. 

This is where the grey market comes in. 

GLP-1 Approximation of Prices Per Month Without Insurance

Ozempic (semaglutide)

$998-$1,200

Wegovy (Semaglutide)

$1,349.02

Rybelsus (Semaglutide)

$984-$1,240

Zepbound (tirzepatide)

1,086 (pens)

$349–$499 (vials / LillyDirect)

Mounjaro (tirzepatide)

$1,080-$1,200


Current weight loss medications are expensive without insurance. But, "compounded" versions of GLP-1s are versions that are made in pharmacies using similar ingredients, and are often sold at much lower prices. 


Compounded GLP-1: Approximation of Prices Per Month Without Insurance


NovoCare

$499 self- pay price per month

Mochi Health

Monthly plans starting at $99/mo

GoodRx

$500

Hims & Hers

$199 (if sign up for 6- month plan)


According to the U.S. Food and Drug Administration, compounded GLP-1 products are not FDA-approved and could be unsafe. 

Compounding pharmacies and telehealth startups are also adding things like “amino acids” and “vitamins,” to differentiate their offerings from the big companies. 

Eli Lilly has filed several lawsuits against telehealth startups and compounders.  The grey market goes through a loophole by avoiding the actual pricing, and also impacting earnings for big pharma companies and potentially damaging investors. 


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