The FDA declared the end to shortages of Zepbound and Mounjaro. That could mean new restrictions on pharmacies making custom-made versions.

Eli Lilly’s juggernaut diabetes and obesity drugs Mounjaro and Zepbound have been erased from the FDA’s shortage list, freeing the company from competing with compounding pharmacies that have been producing copycat versions of the in-demand treatments.

BMO Capital Markets analyst Evan Seigerman called it “another positive indication” for Eli Lilly, which is growing market share in incretin products as manufacturing continues to expand, while noting the drugmaker could start to benefit heading into third quarter earnings.

Eli Lilly's weight-loss drug Zepbound and diabetes drug Mounjaro are no longer in shortage, the U.S. Food and Drug Administration's website showed on Wednesday.

The two-year shortage of Eli Lilly’s blockbuster weight-loss and diabetes drugs is over, the U.S. Food and Drug Administration announced Wednesday.

The San Francisco telehealth company had capitalized on the shortage by making copycat versions of popular brand-name GLP-1 medications.

The removal of Zepbound and Mounjaro from the regulator’s shortage list could lead to restrictions on pharmacies making custom-made versions.

Update: Adds share movement at market open Eli Lilly’s (NYSE:LLY) blockbuster GLP-1 medication, tirzepatide, is no longer in shortage in the U.S., the U.S. Food and Drug Administration (FDA) said on Wednesday.

Blockbuster drugs Zepbound and Mounjaro have come off the FDA's shortage list. Shares of Hims & Hers, which had capitalized on the pinch, are tumbling.

Hims & Hers (NYSE:HIMS), the telehealth platform that offers compounded versions of weight loss drugs, dropped more than 10% on Thursday after the FDA confirmed that Eli Lilly's (LLY) GLP-1 tirzepatide was no longer in shortage.