Novo Nordisk and Eli Lilly Face Growing Number of Lawsuits Over Weight-Loss Drugs Side Effects
As the number of personal injury lawsuits centralized in a Pennsylvania court regarding the potentially harsh side effects of popular weight-loss drugs made by Novo Nordisk and Eli Lilly continues to expand, investors and consumers are closely watching the developments.
The claims against Novo Nordisk and Eli Lilly allege that the companies failed to adequately warn people about the side effects of their GLP-1 receptor agonists, leading to damage to the gastrointestinal system in many cases. These drugs, including Novo Nordisk's Ozempic and Wegovy and Eli Lilly's Mounjaro, are marketed to help patients with diabetes by releasing insulin, controlling blood sugar levels, reducing hunger, and possibly leading to weight loss.
Since the consolidation of existing lawsuits into a multidistrict litigation (MDL) in a federal court in Pennsylvania, there are currently 1,025 cases on file with the court. The plaintiffs argue that the drugmakers did not provide enough information about the side effects when marketing the benefits of the treatments, and they believe that individuals should have access to fair and balanced information to make informed decisions about their health.
Despite the allegations, both Novo Nordisk and Eli Lilly have seen record profits from their GLP-1 offerings, with analysts estimating total annual global sales for such medications could reach $150 billion early in the next decade. Novo Nordisk has stated that the known risks of the drugs are described in their regulator-approved product labeling and that they stand behind the safety and efficacy of their medicines when used as indicated.
In response to the MDL, Novo Nordisk has asserted that the allegations are without merit and they intend to vigorously defend against the claims. Representatives from Eli Lilly, which is a defendant in a smaller number of the lawsuits in the MDL, have not yet commented on the situation.
As an investment manager, it is important to monitor these legal proceedings as they could impact the financial performance of Novo Nordisk and Eli Lilly. For consumers, it is crucial to stay informed about the potential side effects of medications and to consult with healthcare professionals before starting any new treatment.