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Drug-induced hypothyroidism may be caused by: 1  Drugs used for hyperthyroidism (overactive thyroid), such as propylthiouracil (PTU), radioactive iodine, potassium iodide, and methimazole. 2  Treatment with lithium or iodides in certain people.
Hypothyroidism, or an underactive thyroid, is treated with thyroid medication. Levothyroxine (Synthroid, Levoxyl, Levothroid, etc), a synthetic thyroid hormone, is most commonly used. Levothyroxine is T4 which is the long-acting storage form of thyroid hormone.