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503A vs 503B compounding: what is the difference?

A side-by-side chart of the two federal pathways for compounded drugs, written by a pharmacist.

503A pharmacy vs 503B outsourcing facility

Both make compounded drugs. The law treats them differently. Last checked 5 November 2026.

503A: compounding pharmacy503B: outsourcing facility
Federal lawSection 503A of the FD&C Act (21 U.S.C. 353a)Section 503B of the FD&C Act (21 U.S.C. 353b)
Who compoundsA licensed pharmacist in a State-licensed pharmacy or a Federal facility, or a licensed physician.Compounded by or under the direct supervision of a licensed pharmacist, in a facility that registers with FDA as an outsourcing facility (the statute defines one as a facility that compounds sterile drugs).
Prescription needed?Yes. Compounded for an identified individual patient on a valid prescription. The statute allows limited quantities before a prescription arrives, based on a history of orders within an established relationship.A patient-specific prescription is not required; an outsourcing facility may or may not obtain prescriptions for identified patients. A drug dispensed or distributed other than on a prescription for an identified patient must be labeled “Office Use Only.”
Manufacturing standardExempt from the federal current good manufacturing practice (cGMP) requirement in 21 U.S.C. 351(a)(2)(B) when the 503A conditions are met.cGMP applies.
Bulk ingredientsTiered conditions: a USP or NF monograph substance if one exists; otherwise a component of an FDA-approved drug; otherwise a substance on FDA’s list established by regulation. The ingredient must also come from a registered establishment with a valid certificate of analysis.The bulk substance must be on FDA’s 503B bulks list, or the drug must be on FDA’s drug shortage list. The substance also needs a registered manufacturer and a certificate of analysis, and must meet a USP or NF monograph if one exists.
Copies of approved drugsThe statute bars compounding essentially copies of a commercially available drug “regularly or in inordinate amounts.” A change made for an identified patient that the prescriber determines produces a significant difference for that patient means the drug is not treated as essentially a copy.Not being essentially a copy of an approved drug is a condition of the exemption.
FDA registration and oversightNot registered with FDA as an outsourcing facility. State boards of pharmacy have primary oversight.Registers with FDA each year (registration window: October 1 to December 31). FDA inspects on a risk-based schedule.
Reporting to FDAThe outsourcing-facility reporting duties do not apply. State board rules may impose their own.Reports adverse events to FDA and submits product reports at initial registration and then each June and December.
LabelNo 503B-style statutory label list applies. State board labeling rules apply, and other FD&C Act provisions still apply.Must say “This is a compounded drug,” plus the facility name, address and phone number, lot or batch number, dosage form and strength, quantity, dates compounded and of expiration, storage and handling instructions, a list of ingredients, and “Not for resale.” FDA may specify a comparable alternative to the compounded-drug statement.
Shipping across state linesThe statute limits distribution outside the State to 5% of prescription orders unless the State has signed a memorandum of understanding with FDA. FDA’s state information page covers the standard MOU and where it stands; check it before relying on the 5% figure.Not part of 503B.
FDA approvalNeither is FDA-approved. FDA says compounded drugs are not FDA-approved and that it does not verify their safety, effectiveness or quality before they are marketed.

Sources: 21 U.S.C. 353a, 21 U.S.C. 353b, FDA Compounding and the FDA: Questions and Answers, and FDA’s chart of FD&C Act provisions that apply to compounding. A general summary, not legal advice.

How to check who made it

  • A pharmacy (503A). Look the pharmacy up in your state board of pharmacy’s license database. FDA’s BeSafeRx page links every state’s database and advises against using a pharmacy that is not listed. FDA: locate a state-licensed online pharmacy
  • An outsourcing facility (503B). Check FDA’s list of registered outsourcing facilities, which FDA updates weekly. A facility that does not re-register in the October 1 to December 31 window is removed on January 1. The list does not show state board actions. FDA: registered outsourcing facilities

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