An ordinary suburban neighborhood with a modest light gray house and a tree-lined street is not far from the majestic Rocky Mountains.
It’s not where you’d expect an Ozempic black market investigation to take you. But it worked.
A CNBC investigation into counterfeit weight loss drugs revealed a global illegal market where criminals either brazenly alter the drugs or ship the real product from overseas, which is illegal under federal law and known as drug diversion.
The operations mostly involve counterfeit or illegal versions of the diabetes medication Ozempic from Novo Nordisk and the obesity medication Wegovy from Eli Lilly. The four medications belong to the GLP-1 class of drugs, which are extremely popular for weight loss. Criminal schemes have attempted to take advantage of the skyrocketing demand for the treatments.
CNBC purchased a medicine known as Ozempic from a company called Laver Beauty, whose website and corporate documents listed its Boulder, Colorado, address as that peaceful residential street. Even though they have received mail and a 1099 IRS tax form addressed to Laver Beauty, the Boulder homeowners claim to have no connection to the business. However, the drug cost $219 for a month’s supply, which is a small amount compared to the list price of $968 for a month’s supply of Ozempic in the United States.
DHL transported the medication that CNBC purchased from an office building in Shijiazhuang, China, approximately four hours’ drive from Beijing. The plain cardboard box with two melted ice packs that was delivered to the CNBC headquarters in Englewood Cliffs, New Jersey, had no refrigeration. Ozempic should be kept at room temperature. The Novo Nordisk logo and Chinese writing appeared to be authentic on the drug packaging.
Novo Nordisk stated in an email that the medication appeared to be a “diverted legitimate product that was produced for, and distributed to, the Chinese market during the late ’23 and early ’24.” As a result, it would not be permitted or approved for the US market.
“Cannot confirm the sterility, which may present an increased risk of infection for patients who use the counterfeit product,” the business added.
A person who identified himself as a company representative told CNBC in a WhatsApp chat that “all our products are genuine.” Law enforcement sources told CNBC that the Ozempic received from China is part of a larger ongoing federal investigation into Ozempic packages being shipped to the United States. Laver Beauty did not respond to CNBC’s request for comment. We do not sell counterfeits.” The individual acknowledged that CNBC had purchased a product aimed at the Chinese market.
The delegate additionally informed that the Stone location “is the past location of our U.S. distribution center.” The Boulder address was removed from the company’s website a day after CNBC asked about it.
Counterfeit medication CNBC’s purchase of Ozempic is regarded as an illegally diverted drug. The rise of counterfeit drugs, which are fake goods that claim to be real, is a separate but related problem that is getting worse.
Last year, authorities in the United Kingdom seized hundreds of counterfeit Ozempic pens, insulin pens rebranded as Ozempic.
According to Andy Morling, deputy director of criminal enforcement for the Medicines and Healthcare Products Regulatory Agency in the United Kingdom, “We saw that the demand increased and quite often as it happens in these situations, criminals try to fill a gap where the supply and demand aren’t balanced for a particular product, and we started seeing real counterfeit versions of the Ozempic product on the market.”
From a warehouse outside of London, where the counterfeits are kept, Morling spoke to CNBC. In 2023, 869 counterfeit Ozempic pens were seized.
Pharmaceutical companies and federal officials assert that counterfeit weight loss medications pose serious health risks. They may sometimes result in death for those who use them.
Mounjaro and Zepbound’s manufacturer, Eli Lilly, stated that it is actively combating counterfeits.
Before medicines can be administered to patients, we use a complex and stringent testing procedure. However, “unfortunately, counterfeits do not go through that system at all,” stated Dr. Daniel Skovronsky, president of Lilly Research Labs and chief scientific officer of Eli Lilly.
He showed CNBC a sophisticated prank with the name “Mounjaro” on it, but inside was a completely different medication for Type 2 diabetes that didn’t help people lose weight.
He stated, “It comes in a box that is labeled as Mounjaro, and it looks to the world like Mounjaro.” Additionally, there are Mounjaro-themed pens in it. However, it is not at all Mounjaro.”
A weight loss medication that the company hasn’t even put on the market yet is being taken advantage of by counterfeiters to make a profit: retatrutide. CNBC discovered that it is sold online.
It is currently being evaluated in Phase 3 clinical trials. Skovronksy stated, “We don’t know yet, but I hope to get those results next year and we’ll find out.”
Skovronksy responded, “Yeah, that’s crazy… Even the real retatrutide is not ready for patient use outside of clinical trials,” when asked about websites selling what they claim to be retatrutide.
The sprawling international mail facility on the grounds of New York City’s John F. Kennedy International Airport frequently yields counterfeit or diverted Ozempic and other obesity medications. Port seizures are on the rise. The facility made more than 60,000 seizures of illegal and counterfeit goods in the previous year.
Sal Ingrassia, the port director in charge of U.S. Customs and Border Protection (CBP) at JFK, told CNBC, “I am not surprised, unfortunately, any of these new types of drugs that we’re seeing, whether it be drugs for weight loss or other drugs.” They will either be diverted, counterfeited, or shipped illegally through this facility.
Since January 1, the CBP has seized more than 198 Ozempic-labeled medications, according to the agency. Nine shipments of drug named as Wegovy were likewise seized, as well as one shipment marked as Mounjaro.
The CBP seizures data do not specify the quantity of genuine medication that was diverted to the United States or counterfeit medication.
CNBC showed Ingrassia the Ozempic it bought from Laver Beauty in a package that didn’t have the refrigeration it needed. He said that it was obvious that the shipment had “broken the legal supply chain.”
“If we see this, I believe we will intercept it and take action on it. He stated, “This is a dangerous product.”
