Compounded Medications: Where They Fit in Modern Formularies
GoGoMeds Team
What is a compounded medication?
A compounded medication is prepared by a licensed pharmacist for an individual patient based on a prescription, with a customized strength, dosage form or ingredient composition. Compounding gives prescribers a patient-specific option when a commercially available product doesn’t meet a documented clinical need, such as an allergy to an inactive ingredient or a dose that isn’t manufactured.
A Shift in How Providers Think About Compounding
For years, compounded medications were viewed as niche solutions, reserved for cases when commercially available drugs could not meet a patient’s needs. Today, more providers, employers and digital health platforms are asking where compounding fits in their pharmacy strategy, and what it takes to use it appropriately.
Compounding allows licensed pharmacists to prepare medications customized in strength, dosage form or ingredient composition. Compounding gives prescribers a patient-specific option when a commercially available product doesn’t meet a documented clinical need, such as an allergy to an inactive ingredient or a dose that isn’t manufactured.
What Changed After the GLP-1 Shortage
Demand for certain therapies, particularly in metabolic health, brought new visibility to compounding. During the GLP-1 shortages, compounders could make versions of medications that were in short supply, and many providers, employers and digital health platforms built compounded options into their programs.
FDA declared the tirzepatide and semaglutide shortages resolved in late 2024 and early 2025, and the temporary enforcement discretion that followed has ended. Today, 503A compounding rests on a valid prescription for an identified patient, and a prescriber-documented, patient-specific need when a formulation differs from a commercially available product. (Read more: What Telehealth Operators Need to Know After the GLP-1 Shortage)
What This Means for Members
For members, compounding can provide an option when a commercially available medication doesn’t meet a documented clinical need. Potential situations include:
- An allergy or sensitivity to an inactive ingredient, such as a dye or preservative
- A dose or strength that isn’t commercially manufactured
- A dosage form the patient needs, such as a liquid for a patient who can’t swallow tablets
In each case, the prescriber determines and documents the patient-specific need, and the medication is prepared for that individual patient.
How Employers and Digital Health Are Responding
Employers and digital health organizations are taking a closer look at how compounded medications fit into their broader pharmacy strategies. Formularies are being revisited with patient-specific needs in mind, allowing compounded therapies where a prescriber documents a clinical need.
Digital health platforms, in particular, are well positioned to support this, because they can connect prescribing, fulfillment and patient engagement in a more coordinated way. That coordination matters for compounding, where each prescription must be issued for an identified patient and supported by appropriate documentation.
The Role of Technology in Compounding
Technology will play a larger role in how compounded prescriptions are managed, from prescription intake and documentation to fulfillment and patient communication.
That makes the prescribing workflow itself important. FDA has raised concerns about technology platforms that give prescribers preselected options for significant-difference statements. Technology should support clear, individualized documentation, not replace it. Prescribers determine treatment, and a licensed pharmacist verifies every prescription.
Compounded medications are a patient-specific option for when a commercially available product doesn’t meet a documented clinical need. A pharmacy model built around that standard reflects where pharmacy care is heading.
Patient-Specific Compounding with GoGoMeds Select
GoGoMeds Select provides patient-specific compounding. Every compounded prescription is patient-specific and verified by a licensed pharmacist on our dedicated compounding team. Our compounding follows USP <795>, <797> and <800>, with sterility testing on every sterile batch.
Select’s current licensure covers sterile compounding in all states except Alabama, Arkansas, California and Washington, D.C., and nonsterile compounding in all states except Alabama, Arkansas and Washington, D.C. Compounded prescriptions ship only where Select is licensed.
Talk with our team about patient-specific compounding for your program.
Frequently Asked Questions
What is a compounded medication?
A compounded medication is prepared by a licensed pharmacist for an individual patient based on a prescription, with a customized strength, dosage form or ingredient composition.
When is compounding appropriate?
Compounding gives prescribers a patient-specific option when a commercially available product doesn’t meet a documented clinical need, such as an allergy to an inactive ingredient or a dose that isn’t manufactured.
Are compounded medications FDA-approved?
No. Compounded medications are not FDA-approved, which means FDA does not review their safety, effectiveness or quality before they’re dispensed. (FDA)
Did the end of the GLP-1 shortage change compounding?
Yes. FDA declared the tirzepatide and semaglutide shortages resolved in late 2024 and early 2025, and the temporary enforcement discretion that followed has ended. 503A compounding now rests on a valid prescription for an identified patient and, when a formulation differs from a commercially available product, a prescriber-documented, patient-specific need.
What is the difference between 503A and 503B compounding?
503A pharmacies compound medications for identified individual patients based on valid prescriptions, mainly under state pharmacy oversight. 503B outsourcing facilities register with FDA, follow current good manufacturing practice requirements, and may supply compounded medications without a patient-specific prescription in certain circumstances.
