Pharmaceutical Compounding Market: By Application (Pain Management, Dermatology, Harmone Replacement Therapy, Oncology, Others), By Service (Ingredient Alteration, Application or Delivery Alteration, Pharmaceutical dosage alteration, Filling Supply Storage), By Route of Administration (Oral, Parental, Topical, Rectal) By Usage (Pediatric, Geriatric, Adults, Veterinary) and Geography

Pharmaceutical Compounding Market size was valued at USD 14,410.1 million in 2023, growing at an 6.6% CAGR from 2024 to 2030. According to the Food and Drug Administration (FDA), Pharmaceutical Compounding is defined as “a practice in which a licensed pharmacist, a licensed physician, or, in the case of an outsourcing facility, a person under the supervision of a licensed pharmacist, combines, mixes, or alters ingredients of a drug to create a medication tailored to the needs of an individual patient”. According to Professional Compounding Centre of America (PCCA): “Pharmacy compounding is the art and science of preparing personalized medications for patients. Compounded medications are made based on a practitioner’s prescription in which individual ingredients are mixed together in the exact strength and dosage form required by the patient. This method allows the compounding pharmacist to work with the patient and the prescriber to customize a medication to meet the patient’s specific needs. Increasing drug discovery activities; growth in the pharmaceutical and biotechnology industries; and increasing demand for outsourcing these services are some of the key factors driving the market.

The drug pipeline has seen a visible surge in recent years. According to Pharma R&D annual review 2022, the R&D pipeline consisted of 17,737 drugs in 2020, while in 2022, the number of drugs in the pipeline rose to 20,109. The growing drug pipeline is expected to create opportunities for the market. During the COVID-19 pandemic, the majority of COVID-19 vaccines and drugs were in the pipeline. However, in 2022, biotechnology and anticancer drugs were the major drugs in the pipeline, as per Pharma R&D annual review 2022. The pipeline for these drugs is expected to improve in the coming years due to the high demand for biotechnology and anticancer drugs globally. This is expected to increase the demand for compound management of biotechnology and anticancer drugs in the post-pandemic period. Growing drug discovery collaborations between public and private entities are expected to boost global demand for compound management services. For instance, in January 2022, pharmaceutical company AstraZeneca expanded its (AI)-powered drug discovery partnership with Benevolent AI to discover drugs for diseases such as systemic lupus erythematosus and heart failure. Such partnerships are likely to be profitable for the market.

Pharmaceutical Compounding Market Key Developments:

• In May 2021, Slade Health a division of icon group, and the Aukland district Health Board ADHB agreed to a long-term partnership to supply sterile compounding service to fulfill the expanding demands of cancer patients. Through this deal, a top notch GMP (medsafe)-registered sterile compounding plant would be built and run, providing chemotherapy, antibiotic, analgesic, and nutritional infusion for public and private hospitals throughout the New Zealand.
• In November 2020, B Braun formed a strategic alliance with Grifols to integrate the B Braun’s Safe Infusion Systems with Grifols’ automated compounding portfolio for ensuring the safety of automated drug delivery.