The world of online commerce continues to throw up surprises, and this time, it’s in the form of unapproved weight loss drugs. Healthcare major Eli Lilly (NYSE:LLY) is still in the process of developing retatrutide, which is now being offered by a number of online sellers for weight loss, according to the Wall Street Journal.
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While the majority of these sellers are based in China, some websites have also turned to social media platforms to peddle their products. Reportedly, a fitness influencer has even offered the drug through a newsletter.
To begin with, retatrutide is still under late-stage development. The U.S. Food and Drug Administration has so far fired warning letters to two online sellers of knockoff semaglutide and tirzepatide (these are the active ingredients in Lilly’s Ozempic and Mounjaro). The healthcare regulator has also stated its intention to continue investigating reports of counterfeit drug sales.
The buzz around retatrutide comes after the drug showed a weight loss of nearly 24% over a 48-week period in a Phase 2 trial. Currently, Lilly’s Mounjaro is one of the most effective medications for weight loss on the market. Retatrutide, along with Mounjaro and Ozempic, mimics hormones that regulate appetite. Retatrutide, which mimics three hormones, could be a major name in weight loss if approved. However, this approval is still at least three years away.
While Lilly has stated that any product falsely peddled as the company’s medications, such as retatrutide, may expose patients to potentially serious health risks, the task of reigning in knockoffs in the era of “perfect selfies” may prove to be an uphill battle.
What Is the Target Price for LLY Stock?
Overall, the Street has a Strong Buy consensus rating on Eli Lilly. Following a nearly 80% price gain over the past year, the average LLY price target of $620 implies a modest 5% potential upside.
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