What gives pharmacies the right to compound prescription drugs?
The legal foundation for pharmaceutical compounding in the United States comes from the federal Food, Drug, and Cosmetic Act (FD&C Act), specifically Sections 503A and 503B, which were clarified and strengthened by the Drug Quality and Security Act of 2013. Understanding these two pathways is essential context for what changed for semaglutide in 2025 and 2026.
Under Section 503A, a state-licensed pharmacist or physician may compound a drug for an individual patient based on a valid prescription when a licensed prescriber determines there is a clinical need the commercially available product cannot meet. The compounded preparation must not be "essentially a copy" of an FDA-approved drug. Examples of qualifying reasons include a documented allergy to a specific inactive ingredient in the commercial formulation, or a clinical need for a dose strength that is not commercially marketed.
Under Section 503B, an FDA-registered outsourcing facility may produce larger batches of compounded drugs without individual prescriptions, provided those drugs appear on the FDA's list of bulk substances for which there is a clinical need, or appear on the federal drug shortage list. These facilities operate under current Good Manufacturing Practice (CGMP) standards. Critically, the FDA does not approve compounded drugs produced by either 503A pharmacies or 503B outsourcing facilities. The designation "FDA-registered" describes registration status only, not product approval or prior safety review.
The FDA's guidance page for compounders of GLP-1 products distinguishes in plain language between what is permitted during a shortage versus what applies outside one.
How did the GLP-1 shortage create a legal opening for compounding from 2022 to 2025?
Section 506E of the FD&C Act requires the FDA to maintain a list of drugs in shortage. When a drug appears on that list, the "essentially a copy" prohibition does not block 503B outsourcing facilities from producing it in large batches. This shortage exemption is the reason compounded semaglutide became so widely available through telehealth platforms.
Semaglutide entered the shortage list in 2022, driven by surging demand following the FDA's approval of Wegovy for chronic weight management in 2021. Tirzepatide (the active ingredient in Mounjaro and Zepbound) followed. The shortage designation opened the market to hundreds of compounders offering GLP-1 preparations for patients who could not access or afford the brand-name products. At peak availability, compounded semaglutide reached a large number of patients through telehealth platforms, driven by the shortage exemption and surging consumer demand.
One fact matters throughout any discussion of this era: compounded semaglutide and tirzepatide were never FDA-approved drugs. The shortage exemption allowed them to be legally marketed and dispensed, but the FDA did not review these preparations for safety, efficacy, or quality before they reached patients. That distinction drives everything that followed when the shortage ended.
When did the FDA formally end the shortage designation?
The FDA declared the tirzepatide injection shortage resolved in late 2024, based on the manufacturer's confirmation that supply could meet current and projected national demand. The FDA's declaratory order on tirzepatide is publicly available. The FDA then declared the semaglutide injection shortage resolved on February 21, 2025, covering all doses of injectable semaglutide used in diabetes management and weight management.
These declarations eliminated the Section 506E exemption that had temporarily suspended the "essentially a copy" prohibition. Without that exemption, 503B outsourcing facilities could no longer legally produce large batches of compounded semaglutide or tirzepatide unless those substances appeared on the separate 503B bulks list, which requires demonstrated clinical need independent of commercial availability.
Both decisions were challenged in court by compounding industry associations. On May 7, 2025, a federal district court in Texas upheld the FDA's tirzepatide determination, finding the agency acted within its statutory authority. Analysis of that ruling confirmed that the FDA's interpretation of shortage resolution was legally sound.
What enforcement deadlines applied after the shortage ended?
The FDA did not require an immediate halt to all compounding. Instead, it issued phased enforcement discretion periods to prevent abrupt treatment disruptions for patients mid-course. The table below summarizes the key dates, drawn from the FDA's clarification page for GLP-1 compounders.
| Drug | Pharmacy Type | Enforcement Deadline |
|---|---|---|
| Tirzepatide | 503A state-licensed pharmacy | February 18, 2025 |
| Tirzepatide | 503B outsourcing facility | March 19, 2025 |
| Semaglutide | 503A state-licensed pharmacy | April 22, 2025 |
| Semaglutide | 503B outsourcing facility | May 22, 2025 |
After those deadlines, continuing to compound and dispense these medications as copies of commercial products placed a pharmacy outside the terms of FDA enforcement discretion. Compounders that continued past the deadlines without meeting the narrow patient-specific exception entered legally problematic territory and became targets for the warning letter campaigns described below.
Does any lawful path for compounded semaglutide remain in 2026?
The answer is narrow but not zero. Section 503A of the FD&C Act still permits a state-licensed pharmacy to compound a patient-specific preparation when a licensed prescriber documents a genuine clinical reason the commercial product cannot meet that individual patient's need. Situations that may qualify include:
- A documented allergy to a specific inactive ingredient in the commercially available auto-injector pen, such as a preservative not present in a compounded formulation.
- A clinical need for a dose strength or concentration that is not marketed commercially, supported by prescriber documentation.
- A formulation modification required for a specific patient population that cannot use the commercial device as labeled.
Patient preference, cost, and insurance access alone are not sufficient to establish clinical need under 503A. Legal analysis by Foley and Lardner and similar firm guidance confirms this interpretation: the clinical-need requirement must be documented by the prescriber on a patient-by-patient basis, not applied as a blanket program policy.
Any preparation produced under valid 503A circumstances remains not FDA-approved. Compounded semaglutide has not been evaluated in clinical trials equivalent to those conducted for FDA-approved semaglutide products. A telehealth provider that accurately describes this legal framework and partners with a licensed pharmacy following these requirements is operating within a narrow but real legal pathway. For a deeper look at what quality evaluations are and are not in place for compounded preparations, see Is compounded semaglutide safe?
What about compounded tirzepatide in 2026?
The regulatory story for compounded tirzepatide follows the same arc as semaglutide but on an earlier timeline. The shortage was declared resolved in late 2024, and enforcement deadlines closed the large-batch pathway for 503B outsourcing facilities by March 2025 and the 503A pathway by February 2025 for preparations that amount to essentially a copy of the commercial product.
The same narrow 503A exceptions apply: a patient-specific prescription supported by documented clinical need may still be compounded by a licensed pharmacy. Cost and convenience are not qualifying reasons. The FDA has not approved compounded tirzepatide, and no equivalent clinical trials have been conducted on compounded tirzepatide formulations. For context on how the two molecules differ as FDA-approved drugs, see Semaglutide vs. tirzepatide: what is the difference?
One additional development affects tirzepatide's future. On April 30, 2026, the FDA proposed formally excluding semaglutide, tirzepatide, and liraglutide from the 503B bulks list, finding no demonstrated clinical need for outsourcing facilities to compound these molecules from bulk substances. That proposal is discussed in the next section. Liraglutide (the active ingredient in Victoza and Saxenda) currently remains on the drug shortage list, so compounding of liraglutide by 503B facilities continues under that separate exemption as of mid-2026.
What were the three waves of FDA warning letters about?
Between September 2025 and June 2026, the FDA issued more than 110 warning letters to compounders and telehealth companies. The letters addressed two distinct problems: compounding outside the permitted framework, and misleading marketing claims. The marketing enforcement campaign was notably broad and affected companies whose compounding operations may have been otherwise compliant.
Specific language that drew citations in warning letters included calling compounded products "generic" versions of brand-name drugs, stating a product contains "the same active ingredient as" a named brand, claiming FDA approval for either the facility or the product, implying clinical equivalence to an approved drug by citing that drug's published trial results, and placing "FDA-approved active ingredient" language in proximity to a compounded product description. The FDA evaluates the overall impression a website creates under the "net impression" standard, not individual sentences in isolation.
| Wave | Date | Letters Issued | Primary Focus |
|---|---|---|---|
| Wave 1 | September 9, 2025 | 55+ | Compounding violations and marketing claims; Hims and Hers among recipients |
| Wave 2 | February 20, 2026 | 30 | Misleading marketing; FDA published its official "5 prohibited practices" list |
| Wave 3 | June 16, 2026 | 25 | Website claims for compounded semaglutide, tirzepatide, and liraglutide |
The full Wave 2 announcement, including the five specific prohibited practices, is available at the FDA's press release page. The five practices cover the most common marketing patterns that cross the line into misbranding under Section 502(bb) of the FD&C Act. A detailed Wave 3 breakdown is available in the McDermott Will analysis from June 2026.
What is the FDA's 503B bulks list proposal and what would it mean?
On April 30, 2026, the FDA announced a proposal to formally exclude semaglutide, tirzepatide, and liraglutide from the 503B bulks list. The formal notice was published in the Federal Register on May 1, 2026, with a public comment period that closed June 29, 2026. As of mid-2026, the proposal has not been finalized.
The 503B bulks list governs which active pharmaceutical ingredients (API) outsourcing facilities may use to produce compounded drugs outside a declared shortage. To appear on the list, the FDA must find evidence of a clinical need that approved commercial products cannot address. The agency reviewed nominations for these three GLP-1 molecules and concluded that sufficient clinical need had not been demonstrated. It explicitly rejected affordability and insurance access as constituting clinical need under the 503B framework.
If finalized, the rule would permanently close the large-batch bulk pathway for these molecules rather than leaving it contingent on shortage status. It would not eliminate the narrow 503A patient-specific exception. It would not change the fact that compounded semaglutide and tirzepatide are not and have never been FDA-approved. Stakeholders submitted comments during the comment period, and the outcome of the rulemaking process will shape the practical landscape for compounders through 2027 and beyond.
What patient safety data shaped the enforcement approach?
Regulatory decisions rarely occur in isolation from clinical reports. By early 2025, the FDA had received more than 455 adverse event reports linked to compounded semaglutide and more than 320 linked to compounded tirzepatide. Many involved dosing errors: patients self-administering from multi-dose vials, sometimes measuring 5 to 20 times more than the prescribed dose due to confusion between milligrams, milliliters, and insulin units. Several cases required hospitalization, with adverse effects including severe nausea and vomiting, dehydration, fainting, and acute pancreatitis.
The FDA-approved auto-injector pens sold by brand manufacturers include fixed dose mechanisms specifically designed to reduce user error. Compounded vials require patients to draw and measure each dose manually with a syringe, a task that is error-prone for people without prior injection experience. These safety considerations are distinct from the question of whether licensed compounding pharmacies can produce high-quality preparations: a well-operated 503B facility with CGMP standards and independent batch testing can produce a chemically accurate product, and the dosing error problem is partly one of delivery device and patient education rather than formulation quality alone.
For a fuller discussion of the quality-control factors to evaluate when considering any compounded GLP-1 preparation, see Is compounded semaglutide safe? Any treatment decision in this space should involve a licensed healthcare provider who can assess individual medical history, document clinical need where applicable, and provide instructions on safe self-administration.
How can a patient verify that a provider is operating within current law?
For patients evaluating telehealth options, several concrete steps help determine whether a program is likely operating within the current legal framework. These checks are the same ones that regulators and accreditation bodies apply, and they are available to any member of the public at no cost.
| Check | What to Look For | Where to Verify |
|---|---|---|
| State pharmacy license | Current, active license in the dispensing state | State board of pharmacy license lookup (each state has its own tool) |
| 503B FDA registration | If a 503B facility is claimed, it must appear in the FDA registry | FDA outsourcing facility registry |
| PCAB accreditation | Pharmacy Compounding Accreditation Board certification for sterile compounding | nabp.pharmacy accreditation lookup |
| Named pharmacy partner | The telehealth company should name the specific pharmacy, not just claim "FDA-registered" | Ask directly, then check that pharmacy's license independently |
| Prescription requirement | Medication must follow a provider evaluation; "no prescription needed" is illegal | Confirm a provider visit or reviewed questionnaire precedes any prescription |
| Marketing language | Phrases like "generic Ozempic" or "FDA-approved product" for the compounded drug are red flags | Read the provider's own website before enrolling |
A provider that accurately describes compounded semaglutide as not FDA-approved, names the specific licensed pharmacy, and requires a provider evaluation before dispensing is displaying the baseline transparency that current law expects. Patients considering any GLP-1 prescription through telehealth will find a broader guide to the evaluation process in How do you get a GLP-1 prescription online? The cost landscape for both compounded and brand-name options is covered in How much do GLP-1 medications cost per month?
