Compounding pharmacies combine, mix, or alter ingredients to create customized medications for patients according to their individual needs, often to fulfill special dosing needs or change routes of administration or dosage forms for existing FDA-approved drugs, to eliminate allergenic excipients, or to address a shortage of a commercially available drug. The compounded medications are prescribed by a physician to meet the unique medical needs of individual patients. The rising prevalence of chronic diseases like cancer, diabetes, neurological disorders, and others is the major driver for the growth of the U.S. 503B compounding pharmacies market. It is estimated that 60% of Americans currently suffer from at least one chronic disease. Compounding pharmacies play a crucial role in providing customized medications for better management of these chronic conditions.
The global U.S. 503B compounding pharmacies market is estimated to be valued at US$ 1060.51 billion in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the U.S. 503B compounding pharmacies market is the increasing preference for topical formulations. Topical formulations such as gels, creams, and ointments allow direct application of medications to the skin which improves bioavailability and reduces systemic toxicity. This is highly advantageous for treating chronic conditions affecting the skin such as psoriasis, dermatitis, and wounds. Most compounders are focusing on expanding their product portfolios with innovative topical formulations. Secondly, the market is witnessing increased demand for specialized/personalized medications. Chronic conditions often require complex treatments customized to individual patient needs. Compounding pharmacists help in optimizing therapies by modifying dosage forms, strengths to fulfill unmet medical needs not catered to by commercially available drugs. This driving growing demand for their specialized services.
Porter's Analysis
Threat of new entrants: Low barriers to entry and strong regulatory compliance requirements make new entrants unlikely in the short term.
Bargaining power of buyers: Individual consumers have low bargaining power but large group purchasing organizations wield significant influence over pricing and licensing.
Bargaining power of suppliers: 503B compounding pharmacies rely on a small number of active pharmaceutical ingredient suppliers giving suppliers some bargaining leverage.
Threat of new substitutes: New drug formulations and delivery methods pose a medium threat as substitutes but require significant development time and costs.
Competitive rivalry: Competition between existing 503B players is intense on service offering, quality, and pricing with a drive for differentiation through specialized compounds and therapies.
Key Takeaways
The global U.S. 503B Compounding Pharmacies Market Share is expected to witness high growth. Regional analysis related content comprises Regional analysis related content (The North American region currently dominates the market owing to favorable regulations and growing prevalence of various conditions requiring compounding. However, the Asia Pacific region is expected to grow at the fastest pace during the forecast period.)
Key players
Key players operating in the U.S. 503B Compounding Pharmacies market are Merck & Co., Inc., Ferring Pharmaceuticals, Inc., EMD Serono, Inc., Pfizer Inc., Novartis AG.
The global U.S. 503B Compounding Pharmacies Market size was valued at US$ 1060.51 Bn in 2023 and is projected to reach US$ 1772.54 Bn by 2030, expanding at a CAGR of 6.3% during the forecast period. Specialized compounded therapies in areas like pain management, dermatology and veterinary medicines are expected to drive higher demand.
For more details on the report, Read- https://www.insightprobing.com/u-s-503b-compounding-pharmacies-market-demand-share-analysis/
