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Pharmacy
Compounding:

A Blueprint for Eliminating Redundant, Unauthorized, or Ineffective Regulation that Impedes Patient Access to Compounded Drugs

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Overview

Pharmacy compounding plays a vital and time-honored role in American healthcare, offering customized medication solutions when FDA-approved drugs are in shortage or a prescriber judges a custom formulation is needed for an individual patient’s needs. Compounded medications are prepared in licensed pharmacies by trained professionals under rigorous oversight from state pharmacy boards and in general accordance with compounding standards established by the U.S. Pharmacopeia.

Under President Trump’s 10:1 Executive Order requiring the elimination of unnecessary federal rules, we believe pharmacy compounding presents a clear opportunity for reform.

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Protecting Access to Compounded Medications

This document highlights key federal policies or proposals that are redundant, unauthorized by statute, or unproven in their benefit to public health. It offers constructive recommendations to support smarter, more effective regulatory approaches—ones that preserve safety without undermining access or innovation.

A strong regulatory framework for pharmacy compounding is essential. But unnecessary regulation—especially when it fails to deliver a measurable safety benefit—is more than a nuisance; it’s a threat to patient access and a burden on the small businesses that serve those patients.

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1. Unauthorized or Redundant Regulation
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Obsolete: A 1997 MOU between FDA and States

FDA continues to enforce a 1997 Memorandum of Understanding that no longer aligns with today’s legal landscape—thanks to the Drug Quality and Security Act (DQSA). The MOU is burdensome, legally obsolete, and limits patient access, especially across state lines.

Action Needed: Congress must repeal the outdated MOU provision and align federal law with modern compounding practices.

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Overreach on “Demonstrably Difficult to Compound” (DDC) Lists

FDA is trying to apply rules intended for 503B outsourcing facilities to 503A pharmacies—going beyond its legal authority to ban entire drug categories, not just individual formulations.

Action Needed: FDA must follow congressional intent and limit prohibitions under 503A to specific drug products only.

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Arbitrary Restriction of Dietary Supplement Monographs

FDA refuses to recognize dietary supplement monographs as applicable for compounding—even though they meet USP scientific standards.

Action Needed: Recognize all USP monographs, including those for supplements, as valid under Section 503A.

2. Proposed Restrictions or Processes Rooted in Bias, Misinformation, or Insufficient Evidence
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Alarmist FDA Messaging

From GLP-1 warnings to compounded ketamine alerts, FDA public messaging lacks evidence and nuance—undermining trust and misleading the public.

Action Needed: FDA must use balanced, evidence-based communications that clearly distinguish legitimate compounding from counterfeit products.

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Pharma Lobbying Distorts DDC Criteria

Pharma companies are lobbying to add GLP-1 APIs to DDC lists—not because they’re difficult to compound, but to eliminate competition.

Action Needed: FDA must ground decisions in science, not corporate interest.

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Hormone Therapy Under Threat

Millions rely on compounded bioidentical hormone therapy (cBHT), but FDA is using a flawed 2020 report to justify restricting it.

Action Needed: Disqualify the biased NASEM report from influencing any rulemaking. Preserve patient access to tailored hormone care.

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Drug Shortages: Broken Systems

FDA relies on drugmakers to declare shortages—ignoring on-the-ground realities from providers and pharmacists.

Action Needed: Support legislation requiring FDA to consider real-world data when determining drug shortages.

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An Imbalanced Advisory Committee

FDA’s Pharmacy Compounding Advisory Committee (PCAC) excludes real-world voices and favors agency narratives.

Action Needed: Ensure balanced PCAC membership with practicing compounders and equal opportunity for public comment.

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3. Unauthorized, Misguided, or Misinterpreted Regulation

Restore Access and Flexibility in Evaluating Compounded Substances

  • Substances are excluded from compounding for lack of effectiveness evidence—despite compounders being barred from making such claims.
  • Action Needed: FDA should allow any safe substance for compounding, even without efficacy data, to support personalized care.

Veterinary Compounding at Risk

  • New FDA guidance (GFI 256) restricts access to medications for animal patients—without statutory authority or transparency.
  • Action Needed: Rescind or overhaul GFI 256 to protect veterinary care and respect clinician expertise.

“Insanitary Conditions” Rules Need Clarity

  • FDA's guidance lacks objective standards, leaving inspectors and pharmacists confused and inconsistent.
  • Action Needed: Define specific, measurable standards that support safety and consistency.
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“Constructive Transfer” Conflicts

  • DEA prohibits pharmacies from delivering certain medications to prescribers for in-office administration—limiting safe, necessary care.
  • Action Needed: Clarify dispensing rules to allow provider-administered medications when clinically necessary.

Anticipatory Compounding in Jeopardy

  • DEA inspectors sometimes penalize pharmacies for preparing medications in advance—even though FDA allows it.
  • Action Needed: Issue consistent national guidance recognizing the legality and necessity of anticipatory compounding.
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4. A Directive FDA Has (Mostly) Ignored

Where’s the 503B Bulks List?

FDA still hasn’t finalized the 503B bulks list, a critical tool intended to define which bulk drug substances outsourcing facilities can use to prepare compounded medications. This delay—more than a decade since the creation of the 503B pathway—has left hundreds of safe and essential substances in regulatory limbo. Without this list, 503B facilities face uncertainty, risk, and restricted ability to serve hospitals, clinics, and patients in need. The absence of a finalized list hampers patient access to medications, stalls investment, and invites unnecessary enforcement risk.

Action Needed: Finish the 503B review and deliver a science-based, comprehensive bulks list now.

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A Smarter Path Forward

Key Priorities for Removal or Reform:

  • Eliminate the 1997 MOU requirement in Section 503A of the FD&CA.
  • Correct overt overreach in FDA’s draft DDC rules for 503A pharmacies.
  • Mandate that both drug and dietary supplement USP monographs are considered “applicable” in law and regulation.
  • Demand balance and evidence in FDA communication about compounded therapies.
  • Reject drugmaker petitions to add GLP-1 APIs to the DDC list and ensure that decisions about items added to the DDC list are rooted in science and facts.
  • Reject any effort to restrict patient access to compounded hormone therapy and disqualify using the 2020 NASEM report in future policy making.
  • Support legislation to require FDA to rely on a broader range of data in determining drug shortages.
  • Overhaul the FDA PCAC to include pharmacists with current patient-facing experience and allow for those other than the FDA to have an equal amount of time to present to the PCAC.
  • Repair or rescind FDA’s GFI 256 regarding animal drug compounding.
  • Instruct DEA to clarify “constructive transfer” policies to allow for the delivery of controlled substance prescriptions to provider offices for administration.
  • Amend FDA’s “Insanitary Conditions” Guidance to include bright-line standards for compliance.
  • Instruct FDA to finalize a robust 503B bulks list with all deliberate speed.
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The
Alliance
for
Pharmacy
Compounding
is
the
industry
trade
association
and
the
voice
for
pharmacy
compounding,
representing
more
than
600
compounding
small
businesses
including
compounding
pharmacists
and
technicians
in
both
503A
and
503B
settings,
as
well
as
prescribers,
educators,
researchers,
and
suppliers.