The U.S 503B compounding pharmacies market is estimated to be valued at US$ 985.6 Mn in 2022 and is expected to exhibit a CAGR of 7.6% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Compounding pharmacies are pharmacies that prepare medications for patients using FDA-approved ingredients combined to meet a patient's unique needs for dosages, formulations or compounds that commercial pharmaceutical companies do not offer. 503B compounding pharmacies produce medications that are copies of FDA-approved drugs or produce medications from FDA-approved drugs and sell them in interstate commerce. These facilities are required to comply with particular FDA drug manufacturing standards. These compounded medications are prepared based on physician prescriptions for individual patients.
Market key trends:
The rising demand for customized medications among patients is expected to drive the U.S 503B compounding pharmacies market growth over the forecast period. Compounding pharmacies can prepare formulations specifically for patients who may be allergic to ingredients in FDA-approved drugs or who need a medication in a specific dose, delivery method or formulation that is not commercially available. Additionally, the increasing geriatric population sufferings from multiple diseases drives the demand for customized medications. Elderly require mediations which are often not readily available as commercially manufactured drugs or may not be tolerable due to multiple drug allergies or conditions. This is expected to further boost the demand for compounded medications, thereby fueling the market growth during the forecast period.
Porter's Analysis
Threat of new entrants: Low capital requirements for starting a 503B compounding pharmacy pose a moderate threat. However, strict regulatory requirements and lack of brand recognition limit entry of new players.
Bargaining power of buyers: Large group purchasing organizations and insurers have significant bargaining power over pharmacies. However dependence of some specialty medications limits their power to an extent.
Bargaining power of suppliers: A few large API suppliers dominate the market. However, availability of alternative suppliers provides some balance in their bargaining power.
Threat of new substitutes: Threat from therapeutically equivalent FDA-approved drug substitutes is low owing to personalized services offered by compounding pharmacies.
Competitive rivalry: Intense competition exists among existing pharmacies due to no differentiation. Market consolidation is expected to increase rivalry.
SWOT Analysis
Strengths: Personalized medications, therapy expertise, availability of hard-to-find drugs.
Weaknesses: Regulatory risks, brand recognition, high dependency on 503B regulations for revenue. Limited financial resources restrict expansion.
Opportunities: Growing geriatric population and personalized care demand, potential to diversify into other therapies.
Threats: Stringent regulations, reimbursement headwinds, dependence on key personnel. Reliance on few large buyers.
Key Takeaways
The global U.S 503B Compounding Pharmacies Market Size is expected to witness high growth, exhibiting CAGR of 7.6% over the forecast period, due to increasing demand for personalized medications and shortage of pharmaceutical ingredients.
The U.S accounts for the largest share of over 80% in the global market in 2022. California and Texas are the dominant regions in the country due to presence of large healthcare systems and geriatric population.
Regional analysis: North America region dominates the 503B compounding pharmacies market with U.S accounting for over 80% share due to supportive regulations and growing customized medicines demand led by aging population.
Key players operating in the U.S 503B compounding pharmacies market include Central Admixture Pharmacy Services, Inc., Nephron Pharmaceuticals Corporation, QuVa Pharma, Olympia Pharmacy, ASP Cares, Fagron Compounding Pharmacies, Athenex, Inc., Avella Specialty Pharmacy, Atlas Pharmaceuticals, Empower Pharmacy, Carie Boyd’S Prescription Shop, Edge Pharma, Imprimis NJOF, LLC, IntegraDose Compounding services, LLC, Wells Pharma of Houston, LLC, US Compounding Inc., and SCA Pharma.
Read more @ https://www.insightprobing.com/u-s-503b-compounding-pharmacies-market-size-demand-and-trend/
