IRA Reduces Pharma Research, Lilly's Cunning Compounding Litigation, Elevance Lawsuit Dismissed

Hey all,

Happy thursday! I was really impressed with the cunning of Eli Lilly’s lawyers. Using the corporate practice of medicine to attack compounders tactics is brilliant. Enjoy the rundown! 

Jacob Brody (Co-Founder & CEO, ZorroRX)

(Therapeutic Innovation & Regulatory Science) IRA’s Impact on Post-Approval Clinical Trials 

A new peer-reviewed study finds the Inflation Reduction Act (IRA) led to a sharp 38.4% drop in industry-sponsored post-approval clinical trials—with small molecule drugs hit hardest—while government-funded trials remained unaffected. The analysis bolsters concerns that the IRA’s price control timelines are discouraging late-stage drug research, despite efforts to curb costs. Who would’ve thought using Medicare drug pricing to bankroll green energy might come with pharmaceutical side effects? Full Article.

(STAT) Eli Lilly Lawsuits Over Compounded GLP-1s

Eli Lilly has launched a new legal offensive against telehealth companies Mochi Health and Fella Health, accusing them of violating corporate practice of medicine laws by allegedly exerting control over prescribing decisions related to compounded versions of GLP-1 drugs like tirzepatide. This move marks a shift from prior lawsuits over trademark and competition issues, potentially setting a precedent that could expose more telehealth firms to legal risk and reignite scrutiny of the blurry line between clinical autonomy and corporate influence. And honestly, Lilly might be onto something—when every patient’s prescription suddenly changes like it’s part of a company-wide memo, it starts to feel less like a medical decision and more like an office policy update. Full Article

(Modern Healthcare) Employer Lawsuit Over BCBS Settlement

A federal judge ruled that Owens & Minor, a supply chain company, cannot sue Elevance Health over access to employee claims data due to its prior agreement in the $2.7 billion Blue Cross Blue Shield antitrust settlement. The decision underscores the legal complications employers face when seeking transparency in healthcare costs, particularly after joining landmark settlements that limit their litigation rights; it also highlights the growing wave of self-funded employers challenging insurers under federal transparency laws. Or hey, they could always just try choosing transparent providers instead of sticking with incumbents they already know are cheating them. Full Article