Strive Specialties Accuses Eli Lilly and Novo Nordisk of Anti-Competitive Practices

In a recent development, Strive Specialties, one of the largest compounding pharmacies in the United States, has accused pharmaceutical giants Eli Lilly and Novo Nordisk of engaging in anti-competitive practices. The accusation stems from the companies' alleged efforts to lock up telehealth companies that partner with Strive Specialties, thereby cutting off their business.

The Background

Strive Specialties is a compounding pharmacy that provides customized medications to patients. The company partners with various telehealth providers to offer these services to its clients. Compounding pharmacies like Strive Specialties play a crucial role in the healthcare system, as they can create customized medications tailored to individual patient needs.

The Allegations

According to Strive Specialties, Eli Lilly and Novo Nordisk have been attempting to restrict their access to telehealth companies that partner with the pharmacy. The accused companies allegedly use various tactics, including:

• Contractual agreements: Strive Specialties claims that Eli Lilly and Novo Nordisk are signing contractual agreements with telehealth providers, which include provisions that prevent these providers from working with other compounding pharmacies.
• Non-compete clauses: The pharmacy alleges that the accused companies are using non-compete clauses in their contracts to prevent telehealth providers from entering into partnerships with competing compounding pharmacies.
• Monopolistic practices: Strive Specialties accuses Eli Lilly and Novo Nordisk of engaging in monopolistic practices, which include limiting the number of competitors in the market.

The Impact

If true, these allegations could have significant consequences for Strive Specialties and other compounding pharmacies. The company's ability to operate effectively would be compromised if it were unable to access telehealth providers due to contractual agreements or non-compete clauses.

Regulatory Response

The accusations against Eli Lilly and Novo Nordisk are likely to attract attention from regulatory bodies, such as the Federal Trade Commission (FTC). The FTC is responsible for enforcing antitrust laws and preventing monopolistic practices in the healthcare industry.

In recent years, there have been several high-profile cases involving pharmaceutical companies accused of engaging in anti-competitive practices. In 2019, the FTC fined Pfizer $24 million for allegedly engaging in exclusive dealing practices with its distributors.

Conclusion

The accusations against Eli Lilly and Novo Nordisk highlight the need for greater transparency and accountability in the healthcare industry. If these allegations are proven true, it could have significant consequences for the companies involved and the wider market.

Strive Specialties' accusation also underscores the importance of compounding pharmacies like itself, which provide essential services to patients. The ability of compounding pharmacies to operate effectively is crucial to ensuring that patients receive high-quality medications tailored to their needs.

Key Takeaways

• Strive Specialties has accused Eli Lilly and Novo Nordisk of engaging in anti-competitive practices.
• The companies allegedly use contractual agreements, non-compete clauses, and monopolistic practices to restrict access to telehealth providers.
• Regulatory bodies, such as the FTC, are likely to take notice of these allegations.
• If proven true, the accusations could have significant consequences for Eli Lilly and Novo Nordisk.