Texas Attorney General Ken Paxton has filed a lawsuit against Eli Lilly and Co. (NYSE:LLY), accusing the pharmaceutical giant of bribing medical providers to promote its most profitable drugs, including the widely used GLP-1 medications Mounjaro and Zepbound for diabetes and weight loss.

Paxton's office said the company supplied free nurses to help care for patients who received its drugs, as well as administrative support services that helped providers process insurance claims.

Eli Lilly delivered above-consensus results in the second quarter, surpassing Wall Street’s revenue and non-GAAP profit expectations, yet the market response was notably negative. Management attributed the year-on-year growth to ongoing strength from key products such as Mounjaro and Zepbound,

Texas has sued pharmaceutical giant Eli Lilly for allegedly bribing and illegally inducing medical providers to prescribe its most profitable drugs, including the high-demand GLP-1 medications Mounjaro and Zepbound that are used for weight loss and diabetes treatment.

Texas Attorney General Ken Paxton claims that through an alleged kickback scheme Eli Lilly “fraudulently sought to maximize profits at taxpayer expense.”

Lilly will receive exclusive rights to develop and commercialize drug candidates discovered using Superluminal's AI-driven platform.

"Eli Lilly accused of bribing providers to prescribe GLP-1RA drugs" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand.

Texas Attorney General Ken Paxton alleges that Eli Lilly bribed Texas medical providers to provide the company's drugs. Eli Lilly denies the claims.

On Thursday, Eli Lilly and Co. (NYSE:LLY) said it will sharply increase the list price of its weight-loss and type 2 diabetes drug Mounjaro (tirzepatide) in the United Kingdom. The moves underscore growing competition with Danish rival Novo Nordisk A/S (NYSE:NVO) in the lucrative obesity drug market.

Lilly's weight-loss medications Mounjaro and Zepbound are gaining market share on Novo's Wegovy and Ozempic, but investors remain unconvinced.

Eli Lilly hiked its 2025 guidance and posted second-quarter earnings that topped estimates on strong demand for its blockbuster weight loss and diabetes drugs.

LLY's orforglipron study results disappoint, shifting investor focus to Novo Nordisk's bid for first FDA-approved oral obesity pill.