November 2024
The global 503B compounding pharmacies market size was estimated at US$ 1.08 billion in 2023 and is projected to grow US$ 2.25 billion by 2033, rising at a compound annual growth rate (CAGR) of 7.63% from 2024 to 2033. The need for 503B compounding pharmacies is growing because of the growing focus on patient safety and adherence to regulations.
Unlock Infinite Advantages: Subscribe to Annual Membership
The FDA directly regulates 503B pharmacies through the use of CGMP regulations, which are the subject of the 503B compounding pharmacies market. Pharmaceutical firms also adhere to the same set of CGMP rules. As a result, a 503B pharmacy is a compounding pharmacy that follows the strict CGMP regulations. The only pharmacies authorized to provide compounded pharmaceuticals for use in doctor's offices, clinics, and hospitals are these 503B outsourcing facilities. In recent times, the 503B compounding pharmacy market has undergone significant changes due to a number of key developments that will likely affect 503B outsourcing facilities in 2024 and beyond.
The integration of artificial intelligence (AI) into the 503B compounding pharmacies market is poised to significantly enhance market growth. AI's ability to analyze vast datasets quickly and accurately improves quality control and ensures consistent, high-quality compounded medications. By automating routine tasks, AI reduces human error, streamlines operations, and increases efficiency, allowing pharmacists to focus on more complex aspects of compounding.
Predictive analytics powered by AI can forecast demand trends, optimize inventory management, and minimize waste, leading to cost savings and better resource allocation. Moreover, AI-driven systems can assist in regulatory compliance by maintaining meticulous records and ensuring adherence to stringent standards set by the FDA. AI also plays a crucial role in personalized medicine by analyzing patient data to customize formulations, thereby improving patient outcomes.
The integration of AI not only accelerates the compounding process but also enhances the overall safety and effectiveness of medications. As the healthcare industry increasingly embraces technological advancements, AI's role in 503B compounding pharmacies is expected to expand, driving market growth and setting new standards for precision and efficiency in pharmaceutical compounding.
| Company Name | Revelation Pharma |
| Headquarters | Colorado, U.S. |
| Recent Launch | In May 2024, with the goal of elevating standard pharmacy services through virtual clinical consultation, Revelation Pharma, a network of 503A and 503B compounding pharmacies, is launching ConsultRX, a statewide VIP service provided by the company's network of pharmacies. "The experience of patients and healthcare practitioners is improved by ConsultRX. It has a fully working anti-aging and medicine board made up of licensed clinical pharmacists and practitioners. |
| Company Name | ViTalent |
| Headquarters | Arizona, U.S. |
| Recent Launch | In March 2024, a collaborative agreement was launched by ViTalent and CleanroomsUSA, a provider of cleanroom solutions. ViTalent is a compliance, talent solutions, and consultancy company for the healthcare and life sciences industries. In a regulated setting, the partnership ensures compliance, drives quality, streamlines operations, and provides an integrated, end-to-end solution designed exclusively for 503A and 503B compounding pharmacies. |
By decreasing waste and driving down prescription prices, the hospital can actually lower organizational risk through greater regulatory compliance and minimize waste by choosing the right outsourcing pharmacy partner. Furthermore, 503Bs are better suited to comply with the increasingly strict FDA regulations and cGMPs, which benefit the hospital in ways such as extended beyond-use-date of products (beyond that of in-hospital compounded products), which minimize waste, aid in inventory management, and permit the shipment of goods to hospitals located further within the health system than is currently permitted by federal regulations. Even while these benefits come at a higher cost per unit when compared to the cost of buying a sterile vial of medication, the hospital still pays less for these medications.
It is essential to comply with all applicable regulations in the complex and heavily regulated field of pharmaceutical compounding. Adherence to regulations guarantees the utmost levels of safety, quality, and efficacy for 503B compounding pharmacies, which function as outsourcing facilities manufacturing drugs in large quantities without individual prescriptions. FDA standards, such as Current Good Manufacturing Practices (cGMP), are extremely strict and must be followed by 503B compounding pharmacies. A study of regulatory gaps is one of the best strategies to attain and preserve compliance. In this blog, we'll talk about the need to perform a regulatory gap analysis for 503B compounding pharmacies.
Manufacturing specialized pharmaceuticals is a compounding pharmacy's primary duty. For the purpose of creating pharmaceuticals that are specifically tailored to each patient's needs, they collaborate closely with patients and healthcare professionals. A 50 mg dose or a 100 mg dose, for example, or the actual components can be customized, as can the dosage forms (such as a capsule or syringe) and strength. Compounding pharmacies have a strong position to address the growing demand for specially formulated pharmaceuticals.
North America dominated the 503B compounding pharmacies market in 2023. North America is a center of innovation, home to top pharmaceutical and biopharma businesses as well as medication inventors. The industry has a promising future as patients with rare diseases benefit greatly from advancements made possible by technologies like artificial intelligence, biotech, mRNA, and the cell and gene space. Growth is explained by the existence of major international chains, including Rite Aid Corp., Boots, Walgreens, CVS Health, UnitedHealth Group, Cigna, and Walmart. To increase their dominance and presence, these players are utilizing a variety of techniques and cutting-edge technologies.
By 503B compounding pharmacies market share in 2023, the U.S. led the way. The Federal Food, Drug, and Cosmetic Act's Section 503A or 503B applies to drug products or categories of drug products that provide demonstrable difficulties for compounding. This proposed rule was released by the US Food and Drug Administration (FDA) on March 20, 2024. Under the proposed regulation, drug items or groups of drug products (drugs) that offer observable challenges to compounding would be required to meet certain requirements in order to be listed as DDC Lists. The FDA is working with research partners under two cooperation agreements to gather information for the agency's assessment of bulk medication compounds that are proposed for section 503B compounding usage.
Asia Pacific is expected to grow with the fastest CAGR during the forecast period. The Asia Pacific region's need for compounded pharmacy is being driven by the rising incidence of chronic illnesses, including cancer and other diseases. The region's market is growing because there are a lot of market participants there as well. Compounding pharmacies are also very important in today's world because of all the uses and applications they have. Consequently, in the upcoming years, the 503B compounding pharmacies market expansion will experience a surge due to the increased demand and necessity for compounded pharmaceuticals for better patient treatment.
The 503B compounding pharmacies market is anticipated to grow in India as organized businesses' market share rises. Analysts covering the pharmaceutical industry have stated that the expansion of retail networks and the growing appeal of private labels are responsible for the sector's optimistic growth prognosis. For instance, Apollo HealthCo (APHS) has combined its online and offline pharmacy operations lately in order to improve the healthcare services it provides by utilizing Apollo 24/7's digital platform. With analysts projecting a 20% increase in sales for offline pharmacies and growth in the web sector, these improved capabilities should help the company achieve its goal of improving its profit margins. In addition to a diagnostics division, the largest pharmacy chain in India will receive a $2.7 billion investment from Advent International. With an EBITDA of 7-8%, the management wants to boost revenue from the present Rs 7,734 crores to Rs 25,000 crores in three years.
The FDA labels 503A compounding pharmacies as those that make medications specifically for individual patients based on their prescriptions. These pharmacies must follow certain rules set by the United States Pharmacopeia (USP) and state pharmacy boards. 503A pharmacies can only make small amounts of medication at a time and are not allowed to produce large batches. They must follow strict guidelines, such as USP <795> for non-sterile and USP <797> for sterile compounding. These compounding activities can happen in community pharmacies, hospital pharmacies, and doctors' offices. USP also requires these pharmacies to work in properly designed spaces that ensure correct storage and conditions like temperature, light, ventilation, and moisture control.
November 2024
July 2024
October 2023
Deepa has certified the degree of Master’s in Pharmacy in the Pharmaceutical Quality Assurance department from Dr D.Y. Patil College of Pharmacy. Her research is focused on the healthcare industry. She is the author or co-author of four Review Articles, which include Solid dispersion a strategic method for poorly soluble drugs and solubility improvement techniques for poorly soluble drugs, Herbal Drugs Used In Treatment Of Cataracts, Nano sponges And Their Application in Cancer Prevention and Ayurvedic Remedies of Peptic ulcer. She has also published a Research Article on the Formulation and Evaluation of Mucoadhesive Tablets of Miconazole cocrystal which was published in GIS Science Journal Volume 9 Issue 8. Her passion for secondary research and desire to take on the challenge of solving unresolved issues is making her flourish is the in the research sector.
Annual Access, Limitless Research! Unlock all market research reports with our annual subscription. Stay on top of market trends and crucial insights year-round!
2500+
Client Queries in 20235000+
Insights Published60+
Consulting Projects Per Year40+
Analysts