Eli Lilly (LLY) on Thursday secured a partial victory after a US federal judge allowed key portions of its lawsuit alleging false advertising and unfair competition against Aios, which operates as Fella Health and Delilah, to proceed.

According to a court order, Eli Lilly adequately alleged that Fella's marketing of compounded tirzepatide products could mislead consumers and divert sales.

"Eli Lilly has also adequately alleged both economic and reputational injury flowing directly from Fella's alleged deception of consumers through its advertising," Judge Haywood S. Gilliam Jr. for the US District Court for the Northern District of California said in the order.

The court allowed the drugmaker's claims for unfair competition, false advertising under the Unfair Competition Law and Lanham Act, and civil conspiracy to move forward.

Eli Lilly shares were 1% lower in Friday trading.

Price: 888.10, Change: -8.90, Percent Change: -0.99