The U.S. Compounding Pharmacies Market is estimated to be valued at USD 5,290.4 Mn in 2024, exhibiting a CAGR of 6.1% over the forecast period (2024-2031). The market is witnessing significant growth owing to the rising prevalence of chronic diseases such as cancer, diabetes, cardiovascular diseases, etc. and growing geriatric population susceptible to various chronic conditions are driving the demand for customized medicines and supplements catering to patients' individual needs. Furthermore, compounding pharmacies allow the production of medicines for conditions not catered by manufactures, thereby expanding treatment access.
Market Dynamics:
There are two key drivers behind the growth of the U.S. compounding pharmacies market during the forecast period. Firstly, the prevalence of chronic diseases has been on the rise over the past few decades. As per Centers for Disease Control and Prevention (CDC) estimates, around six in 10 American adults suffer from at least one chronic disease like heart disease, cancer, or diabetes. Since these conditions require long-term medical management, they contribute significantly to the growth of the compounding pharmacies market. Secondly, the U.S. population aged 65 years or older is projected to grow from 57 million to 95 million between 2020 and 2060. Older population is more prone to develop multiple chronic conditions that may not be alleviated by commercially available drugs, thus driving the demand for customized compounded medication and supplements
Increasing demand for customized medications
Compounding pharmacies allow for specialized medications to be created based on a patient's unique medical needs. This has led to the growing demand as more patients and doctors seek alternatives to manufactured drugs that may have undesirable side effects or are not suitable for certain medical conditions. Compounded medications can be tailored to specific dosages, modified routes of administration like topical gels or creams, or altered to remove undesirable ingredients like dyes or preservatives that could irritate sensitive patients. As awareness of compounding increases, more patients are realizing the benefits of customized care through these pharmacies.
Rise of complicated drug formulations
Complex medical cases often require compounding expertise to develop formulations that address multiple pharmaceutical needs. As modern treatments become more advanced, the medications prescribed also grow in complexity. Compounding pharmacies play an important role in creating specialized mixtures and delivery methods for patients with polypharmacy or conditions like cancer that may benefit from coordinated drug interactions customized for an individual's body. Their skills are vital for innovating newer drug formulations designed specifically for difficult-to-treat diseases. This rise of intricate pharmaceutical mixtures is driving greater demand for compounded medications.
Potential quality and safety issues
While compounding allows flexibility, it also introduces quality control challenges compared to manufactured drugs. Compounded medications are not Food and Drug Administration approved which raises risks if produced improperly. Any contamination or inaccurate dosing during production can potentially threaten patient safety. Recent pharmacy outbreaks from improper sterility procedures have prompted regulatory backlash and public distrust of some compounders. Ensuring consistent safety standards across all compounding facilities remains an obstacle limiting wider market growth and acceptance.
Reimbursement and pricing obstacles
Compounded drugs are generally not covered by insurance formularies the way standard manufactured medications are. Patients often face high direct costs that may not be reimbursable. This limits access for those unable to afford the extra expense. It is also difficult for compounding pharmacies to set appropriate prices that balance costs of specialized preparation with what patients are willing to pay out-of-pocket. Negotiating reimbursements is challenging when payers consider these drugs experimental. However, this tug-of-war over costs between pharmacies, patients, and insurance bodies restricts the potential patient pool.
Expanded therapeutic areas
As the population ages and chronic disease prevalence rises, new conditions will require compounded formulations. Compounding abilities allow for innovations adapting to existing drugs to serve patient groups otherwise untreatable or underserved. Growing areas like pediatrics, geriatrics, veterinary medicine, and niche populations present opportunities if compounded options can be validated and taken to market. Success in emerging therapeutic areas could broadly expand market reach.
Link - https://www.coherentmarketinsights.com/market-insight/us-compounding-pharmacies-market-3142
Key Development
- In July 2022, Fagron, the leading global player in pharmaceutical compounding pharmacies, 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 50 states.
- 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,Ltd, Rx3 Compounding Pharmacy, B Braun SE, QuVa Pharma, ITC Compounding Pharmacy, PharMEDium Services, Cantrell Drug Company, Triangle Compounding Pharmacies,Hoye’s Pharmacy, Vertisis Custom Pharmacy, Smith Caldwell Drug Store, Nephron Pharmaceuticals Corporation, Clinigen Group PLC, and Lorraine’s Pharmacy
