Compounding pharmacies market is estimated to be valued at USD 11.18 Bn in 2024, and is expected to exhibit a CAGR of 6.1% over the forecast period (2024-2031). The global compounding pharmacies market is estimated to witness high growth due to increasing geriatric population and growing personalized medication trends. furthermore, the market is witnessing high growth owing to the increasing geriatric population globally who require specialized medications that are not commercially available. compounded medications aim to fulfill this unmet need by preparing customized drugs as per the patient's requirement.
Market Dynamics:
Global compounding pharmacies market growth is primarily driven by increasing prevalence of chronic diseases and growth of aging population globally. As per estimates, over half of the adults in the U.S. suffer from at least one chronic medical condition like diabetes, heart disease, cancer, and others. Their effective management requires prescription drugs to be compounded, modified or reformulated as per patient needs. This can boost demand for compounding pharmacies. Tthe senior population aged over 65 years requires more customized medications due to multiple comorbidities or inability to consume certain ingredients.
Increasing Demand for Personalized Medication
Global compounding pharmacies market growth is driven by growing demand for personalized medication among patients. Compounded drugs allow pharmacists to formulate medications tailored to individual patient needs, such as modifying dosages, changing drug formulations, and providing alternatives for patients who are allergic to common inactive ingredients in mass-produced drugs. This drives more patients and physicians to rely on compounding pharmacies for customized treatments. Growing awareness about the benefits of personalized care approaches can boost demand for compounded medications in the near future.
Shortage of Drugs in Standard Dosages and Formulations
Frequent shortages of drugs in standard oral solid and liquid dosage forms can drive the market growth. Compounding pharmacies address these shortages by producing alternative formulations. These provide customized medication options for patients when a drug is not available commercially in the required dosage strength, form or pack size. Growing frequency of drug shortages, particularly for older, off-patent medicines, has significantly boosted demand for the services of compounding pharmacies. This driver is expected to persist as pharmaceutical supply chain issues regularly cause disruptions.
Compliance and Regulatory Issues
Strict regulations can hamper the growth of global compounding pharmacies market. Compounding pharmacies must follow rigorous safety and quality standards set by regulatory bodies like the U.S. FDA and other national drug authorities. Frequent reformulations of such regulations increases compliance costs for the market players. Recent regulations also ban certain types of compounding from larger compounders that are seen to be effectively manufacturing unapproved drugs. Navigating the complex regulatory landscape raises operating expenses and discourages new entrants.
Recalls and Safety Scandals
Major product recalls and safety issues from key market players can hamper the market growth. High-profile compounding pharmacy scandals and recalls, such as the meningitis outbreak linked to contaminated steroids from the New England Compounding Center, has severely dented consumer confidence. This has made physicians and patients wary of relying entirely on compounded medications. Frequent adverse media reports on compounding pharmacies persist due to the sensitive nature of their work. Such negative publicity poses reputational risks for all industry players.
Expanding into International Markets
Most compounding pharmacies currently operate only within the domestic borders of their home country, mainly the U.S. However, there is huge untapped potential in expanding services internationally, especially in countries with growing healthcare sectors and demand for specialized treatments. This represents a major growth opportunity as cross-border compounding pharmacy businesses begin addressing the global market. Regulatory frameworks are also evolving to encourage international trade of these customized drugs.
Entering Therapeutic Niches
A key opportunity lies in specializing compounding services for specific therapeutic areas with high unmet needs, such as oncology, pediatrics, veterinary medicine and geriatrics. Compounding presents opportunities for developing alternative formulations and customized doses for vulnerable patient groups that face challenges getting treatments through traditional pharmaceutical channels. Those able to carve out expert niches in areas like extemporaneous compounding, hormones, radiopharmaceuticals and transdermal gels are poised to experience the growth.
Link: https://www.coherentmarketinsights.com/market-insight/compounding-pharmacies-market-3199
Key Development
- On April 10, 2024, Myonex, a global clinical trial company, announced that it had completed its acquisition of Saveway Compounding Pharmacy. The acquisition allowed Myonex to better supply patients in clinical trials with medication and equipment as needed. It will also help the company expand its clinical trial designs and include direct-to-patient and home healthcare provider capabilities.
- In July 2022, Fagron, a leading global player in pharmaceutical compounding, acquired a 503B outsourcing facility from Fresenius Kabi in Boston, U.S. With this acquisition, Fagron expanded its U.S. sterile compounding footprint.
- In June 2022, Osceola Capital, a private equity firm, announced the eighth addition to the Revelation Pharma Corporation platform by purchasing Wedgewood Pharmacy’s human health book of business. Wedgewood Pharmacy operates compounding pharmacies that offer sterile and non-sterile compounded medications for animal patients.
- In March 2021, the National Association of Boards of Pharmacy (NABP) launched Compounding Pharmacy Information-Sharing Project with U.S. Food and drug Administration
- In March 2021, Osceola Capital, a lower middle-market private equity firm, announced the formation of Revelation Pharma Corp. to pursue investments and partnerships across the pharmacy compounding market in partnership with industry executives
Key Players: Avella Specialty Pharmacy, Central Admixture Pharmacy Services, Fagron, Fresenius Kabi AG, PharMEDium Services, Institutional Pharmacy Solutions, Cantrell Drug Company, Triangle Compounding Pharmacies, Lorraine’s Pharmacy, Rx3 Compounding Pharmacy, B Braun SE, Clinigen Group PLC, QuVa Pharma, ITC Compounding Pharmacy, Advanced Pharmacy
