The U.S. 503B compounding pharmacies market facilitates the creation of customized medications for patients who have special medication needs that can’t be met by commercially available pharmaceutical products. 503B compounding pharmacies produce sterile medications such as total parenteral nutrition, ophthalmic solutions, and injections in bulk quantities without a patient-specific prescription. This allows the medications to be quickly produced and made available when needed. The U.S. 503B compounding pharmacies market is expected to alleviate medication shortages, facilitate customized drug therapies, and cater to the needs of an aging population.
The Global U.S. 503B Compounding Pharmacies Market is estimated to be valued at US$ 1221.71 Mn in 2024 and is expected to exhibit a CAGR of 3.1% over the forecast period of 2024 to 2030.
Key Takeaways
Key players operating in the U.S. 503B compounding pharmacies include ANWIL SA (PKN ORLEN SA), BorsodChem (Wanhua Chemical Group Co. Ltd), Ciner Resources Corporation, Covestro AG, Dow, Ercros SA and others. The market is dominated by these major players which cater to the growing need for compounded sterile preparations.
There is a growing demand for customized medications in the U.S. due to rising prevalence of chronic diseases, allergies and other conditions. Compounding pharmacies help meet this demand through personalized formulation of drugs.
With increasing medication shortages and chronic disease burden worldwide, major compounding pharmacy players are expanding their global footprint to address the global need for compounded sterile preparations.
Market Key Trends
One of the key trends in the U.S. 503B Compounding Pharmacies Market is the increasing demand for sterile preparations owing to medication shortages and lack of commercially available drugs for certain patient populations. 503B compounding pharmacies help address this demand by manufacturing sterile medications in bulk quantities. Additionally, the aging population profile in the U.S. and prevalence of chronic conditions requiring customized medication therapies is expected to drive the need for compounded preparations in the country over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as a sizable capital investment is required to set up compounding facilities and obtain 503B registrations and licenses. However, the growing shortage of drugs and increased demand presents opportunities.
Bargaining power of buyers: The bargaining power of buyers is moderate. While some key players dominate the market, the demand for customized medications provides buyers with some negotiating power.
Bargaining power of suppliers: The bargaining power of suppliers is low to moderate. There are multiple API and inactive ingredient suppliers that pharmacies can choose from. However, suppliers of some niche ingredients may wield more influence.
Threat of new substitutes: The threat of new substitutes is low as compounded medications aim to fulfill unmet needs of specific patients. New drug approvals take a long time and may not replace all compounded formulations.
Competitive rivalry: The competitive rivalry is moderate to high as the market comprises several national and regional players investing in advanced facilities and service offerings to gain market share.
Geographical regions: California, Texas, and Florida hold the largest share of the US 503B compounding pharmacies market currently in terms of value due to their large patient pool and favorable regulations for compounding facilities.
The Southeast region of the US is poised to witness the fastest growth during the forecast period. States like North Carolina and Georgia are emerging hubs for pharmaceutical manufacturing and outsourcing. This is likely to drive the demand for 503B compounding services from the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
