Compounders still supply about 20% of US GLP-1 weight-loss market despite FDA crackdown and shortages

A recent Gallup survey shows that while the number of Americans taking GLP-1 weight‑loss drugs has nearly quadrupled over the past two years, roughly one in five are using cheaper, non‑FDA‑approved alternatives.

The surge in demand for Novo Nordisk's semaglutide and Eli Lilly's tirzepatide outpaced the companies' ability to supply the drugs, leading to shortages that opened the door for compounding pharmacies to produce lower‑cost versions that are legal when branded products are unavailable.

These compounded GLP‑1 products generated billions of dollars for telehealth platforms such as Hims & Hers, and at their peak in 2024 they represented an estimated 30% of the overall GLP‑1 market.

Regulators have intensified scrutiny, launching a crackdown on compounders amid growing lawsuits and safety concerns, while the original manufacturers continue to work on stabilizing supply.