⚖️ Eucalyptus' weight loss
The Australian government has banned the sale of compounded Ozempic. VC-backed Eucalyptus, which will be hit by the decision, says the government is cutting off supply to those who rely on it.
The federal government's decision to ban the compounding of active ingredients in weight loss drugs like Ozempic from October is set to have a profound impact on one of the country’s hottest VC-backed startups, Eucalyptus.
But the Blackbird and Airtree backed startup's CEO Tim Doyle believes it's patients relying on the medication who will be the hardest hit by the move. “Hundreds of thousands of people across the country are going to be left without medication and it doesn't seem like the government has a plan,” he told Capital Brief.
The government’s decision follows intense media scrutiny over the rise of 'miracle' weight loss drugs, which have surged in popularity over the past two years, causing widespread shortages. A recent investigation by the ABC found one registered Australian pharmacist was running an international pharmaceutical racket manufacturing replica Ozempic and illegally exporting it to the United States.
Ozempic and other weight loss drugs have been enormously lucrative for Eucalyptus. Doyle told Capital Brief earlier this year that the company had generated $100 million in just over a year solely from its weight loss business. That figure would likely be even higher now.
