The 503B compounding pharmacies engage in producing medications for administration to humans in the absence of a patient-specific prescription. These compounded drugs are utilized to fulfill unmet medical needs of patients who may not be able to take FDA-approved commercially available medications due to allergies or other issues. The compounded medications are utilized to treat a wide range of conditions including pain management, hormone replacement, dermatological conditions.
The U.S. 503B Compounding Pharmacies market is estimated to be valued at US$ 1060.51 billion in 2023 and is expected to exhibit a CAGR of 3.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rising demand for customized medications due to increasing prevalence of chronic health conditions among geriatric population is expected to drive the growth of U.S. 503B compounding pharmacies market over the forecast period. According to Centers for Disease Control and Prevention (CDC), approximately 60-70% of Americans suffer from at least one chronic disease such as arthritis, asthma, cancer, chronic bronchitis, diabetes, heart disease, and stroke. Increasing geriatric population in the U.S. suffering from multiple morbidities is further augmenting the demand for customized compounded medications to treat complex health conditions, thereby propelling the market growth. Additionally, shortage of drugs required by patients for various conditions is another key factor fueling the demand for alternative drug options offered by 503B compounding pharmacies. However, lack of standardized manufacturing practices as well as quality and safety concerns related to compounded medications may hamper the market growth over the forecast period.
Segment Analysis
The U.S. 503B Compounding Pharmacies Market is dominated by 503B outsourcing facilities sub segment. These are compounding pharmacies registered with FDA under Section 503B of the FD&C Act that can produce and ship compounded medications in bulk for hospitals, clinics and other medical practices. These 503B outsourcing facilities are able to produce compounded medications in commercial quantities without receiving individual patient prescriptions and get around certain manufacturing, testing, and labeling standards that apply to traditional compounding pharmacies. As they can produce large volumes of compounds, many healthcare facilities find it more cost-effective to source from these 503B outsourcing facilities rather than compounding medications in-house.
PEST Analysis
Political: The FDA regulates compounding pharmacies under Section 503A and 503B of the FD&C Act to ensure quality and safety standards are met. Any changes to these regulations can impact market dynamics.
Economic: The overall growth of the U.S. healthcare sector and rising demand for customized medications are driving demand in the market. Higher implementation of health insurance is also improving affordability.
Social: Increasing prevalence of chronic diseases necessitating customized medications as well as aging population prone to complex disease conditions are fueling need for compounded drugs. Growing awareness about personalized medicines is also supporting market growth.
Technological: Advanced analytical testing equipment and quality control systems help 503B outsourcing facilities ensure compounded drugs meet specified requirements for potency, purity and quality. Automation in manufacturing aids in standardized, large-scale production.
Key Takeaways
The U.S. 503B Compounding Pharmacies Market Size is expected to witness high growth over the forecast period of 2023 to 2030 supported by the rising geriatric population, increasing prevalence of chronic diseases and growing awareness about personalized medicines. The U.S. 503B Compounding Pharmacies market is estimated to be valued at US$ 1060.51 billion in 2023 and is expected to exhibit a CAGR of 3.1% over the forecast period 2023 to 2030.
Regional analysis: The Western region dominates the market currently due to presence of major 503B outsourcing facilities in states like California and Texas. The Midwest region is expected to grow at a higher rate during the forecast period supported by increasing healthcare investments and demand in states like Illinois and Ohio.
Key players: Key players operating in the U.S. 503B Compounding Pharmacies Market are ANWIL SA (PKN ORLEN SA), Central Admixture Pharmacy Services, Fresenius Kabi USA, LLC, PharMEDium Services, LLC, Cantrell Drug Company and Institutional Pharmacy Solutions. These players are focusing on expanding their product portfolios and production capacities to strengthen market presence.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
