As brand-name weight-loss drugs are scarce, a market for alternatives is thriving

As brand-name weight-loss drugs are scarce, a market for alternatives is thriving

Prescription weight-loss drugs have become so popular in the United States that suppliers are struggling to keep up. Jean Readdy, a retired schoolteacher living in Sinking Spring, Pennsylvania, is one of about eight American women who have tried a prescription drug to lose weight. GLP-1 drug for weight loss or diabetes, more commonly known by brand names like Ozempic and Wegovy.

Readdy, who struggled with her weight for most of her life, told CBS News that her weight affected her self-esteem and how she moved in the world.

“I didn’t like going out,” Readdy admitted.

She reached her peak weight last October, just as her son was about to get married.

“I was embarrassed for him and I was embarrassed for myself,” Readdy said.

Today, she is one of a growing number of people turn to compound drugs:reformulated versions that the FDA has authorized for distribution to pharmacies for a continued shortage branded drugs.

Ozempic, Victoza and Wegovy, prescription injectable weight loss medications.
The three main prescription injectable weight loss medications are Ozempic, Victoza, and Wegovy.

Michael Siluk/UCG/Universal Images Group via Getty Images


Readdy’s decision to switch from a branded drug to a compounded drug was a matter of price and availability. $1,200 per month for brand-name drug Zepbound It was not sustainable and it was becoming impossible to find, she said.

And she’s not alone.

Readdy turned to online communities where thousands of people shared resources and where to find the drugs in short supply. On a Reddit forum, she read about side effects, researched alternatives, and eventually came across a spreadsheet with dozens of telehealth providers for prescription weight-loss drugs. After weighing the risks and calling dozens of pharmacies, she finally found one that provided her with injectable tirzepatide, the same active ingredient found in Zepbound. Readdy now pays $399 a month for her compounded medication.

CBS News has identified more than 100 companies advertising access to tirzepatide or semaglutide, two active ingredients in brand-name GLP-1 drugs that regulate insulin and suppress appetite.

LegitScript, an organization that monitors and certifies online businesses, said it has seen a 94% increase in the number of businesses applying for its healthcare certification since 2023. More than half of its recent applicants had a website focused on weight loss.

However, compounded drugs are not reviewed for effectiveness and safety by the FDA.

“There’s not a lot of control,” said CBS News medical contributor Dr. Celine Gounder. “There’s a lot of diversity in terms of quality and risk.”

Researchers who ordered and tested the compound semaglutide found that some were contaminated and others contained more of the active ingredient than advertised.

Compound medications usually come with a needle and vial, rather than a pre-filled pen, as brand-name medications do. This can make them more difficult to administer and can lead to potential dosage errorsThe FDA has issued warnings regarding the proper dosing of medications and the risks associated with the use of the compound semaglutide.

Yet many telemedicine companies that promote compounded weight-loss drugs present them as identical, or “generic,” versions of the brand-name drugs. Nearly a quarter of the websites identified by CBS News failed to specify that the drugs they advertised were compounded drugs.

There are no FDA-approved generic versions of brand-name weight loss drugs because pharmaceutical companies still hold patents on these drugs. Some companies have falsely claimed that the drugs were FDA-approved. A few have even allowed direct purchase without a prescription.

The FDA is working closely with drugmakers and could restrict the manufacturing of compounded drugs as more versions of approved drugs are removed from the shortage list.

Last month, Eli Lilly announced it would cut the cost of the lowest dose of its Zepbound drug to about $400 a month. It also launched its own telehealth company, LillyDirect.

Readdy, who lost more than 50 pounds, said she plans to continue using her compounded medications.

“We’re really afraid the drug will be withdrawn,” she said. “I think it’s a miracle drug.”