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HHS/FDA RIN: 0910-AB58 Publication ID: Fall 2000 
Title: Pharmacy and Physician Compounding of Drug Products 
Abstract: Section 503A of the Federal Food, Drug, and Cosmetic Act (the Act) (21 U.S.C. 353a) describes the circumstances under which compounded drugs may qualify for exemption from three requirements of the Act: (1) that a drug be manufactured according to current good manufacturing practice; (2) that a drug have adequate directions for use; and (3) that a marketing application be approved by FDA before a new drug product is introduced for sale (i.e., sections 501(a)(2)(B), 502(f)(1), and 505 of the Act (21 U.S.C. 351(a)(2)(B), 352(f)(1), and 355)). To qualify for the exemption, a pharmacist or physician must meet statutory conditions for compounding, including the following: (1) there generally must be a prescription for an identified individual patient before compounding; (2) compounding before receiving a prescription is allowed only under limited circumstances; (3) the quantity of drugs that may be shipped out of state is limited and may vary depending on whether the compounder is located in a state that has entered into a memorandum of understanding (MOU) with FDA; (4) drug products may only be compounded using a bulk drug substance (which is essentially the active ingredient) that is listed in the United States Pharmacopoeia (USP) or National Formulary (NF), or a bulk drug substance that is a component of an FDA-approved drug product, or a bulk drug substance that is listed in the regulation as one that FDA has found to be suitable for compounding; (5) the bulk drug substance must be made in a facility registered with FDA and the bulk drug substance must be accompanied by a certificate of analysis; (6) limited quantities of copies of commercially manufactured drug products may be compounded only in special circumstances; (7) drug products may not be compounded if they are listed in a regulation as having been removed from the market or had their FDA-approval withdrawn because they were found to be not safe or not effective; (8) drug products that are listed in the regulations as "demonstrably difficult to compound" may not be compounded. The regulations will amplify and explain the statutory requirements as well as execute tasks Congress assigned FDA in section 503A. This proposed rule will be one of several rulemakings implementing section 503A. Related regulatory initiatives are described below: (1) FDA has issued a final rule listing drug products that may not be compounded because they were found to be not safe or not effective and were removed from the market or had their FDA approval withdrawn; (2) FDA has also issued a proposed rule and is preparing a final rule listing drugs that are not the subject of a USP or NF monograph, and are not components of an FDA-approved drug product but are suitable for compounding; (3) FDA is currently preparing a proposed rule listing those drugs that are demonstrably difficult to compound and are not allowed to be compounded; and (4) FDA has published a Federal Register notice announcing the availability of a draft MOU between FDA and State boards of pharmacy. 
Agency: Department of Health and Human Services(HHS)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: Undetermined  Unfunded Mandates: Undetermined 
CFR Citation: 21 CFR 216   
Legal Authority: 21 USC 331    21 USC 351    21 USC 352    21 USC 353a    21 USC 355    21 USC 360    21 USC 371   
Legal Deadline:  None

Statement of Need: Pharmacy compounding can provide substantial benefits to the public health. It can give to patients, who are allergic to inactive ingredients found in commercially available drug products, versions of those drug products from which the allergenic ingredient has been omitted. Patients who have difficulty taking a commercially available drug product may obtain a compounded version of the drug product in a different dosage form. In certain instances, pharmacy compounding can also enable physicians to access certain drugs that are not commercially available. Just as compounded drugs may present significant benefits to health, they can also present significant risks. Compounded drugs are generally not evaluated by FDA for safety or effectiveness. They are not made according to current good manufacturing practices and have generally not been tested for strength, quality, or purity. Stability testing, to establish the useful shelf life of the products, has generally not been performed on compounded drug products. Compounders have made illicit copies of FDA-approved drug products, threatening the integrity of the drug approval process. FDA is attempting to maximize the public health benefits of pharmacy compounding, while minimizing the potential threat to the public health.

Summary of the Legal Basis: Section 127 of the Food and Drug Administration Modernization Act of 1997 (FDAMA) adds section 503A to the Act. Sections 503A(b)(1)(A)(i)(III) and (d)(2) direct FDA to publish regulations establishing a list of drugs that are suitable for compounding. Section 503A(b)(1)(C) directs FDA to publish in the Federal Register a list of drug products that have been withdrawn or removed from the market because such drug products or components of such drug products have been found to be unsafe or not effective. Section 503A(b)(1)(D) directs FDA to define the term "compound regularly or in inordinate amounts" relating to compounding drug products that are essentially copies of a commercially available drug product. Section 503A(b)(3)(A) directs FDA to develop a list of drug products that may not be compounded because they are demonstrably difficult to compound. Efficient enforcement of section 503A would benefit from publication of a substantive rule that interprets and applies the statutory language.

Alternatives: Section 127 of FDAMA directs FDA to develop regulations, so no alternatives to regulations have been considered. FDA has considered a wide range of options and approaches within the framework of a regulation. FDA has convened and consulted the Pharmacy Compounding Advisory Committee, which consists of representatives of the United States Pharmacopoeia, the National Association of Boards of Pharmacy, and a consumer organization, as well as members of the pharmacy and pharmaceutical manufacturing industries, physicians and academics.

Anticipated Costs and Benefits: FDA has not yet quantified the costs and benefits of any regulatory approach. FDA has not been significantly involved in the regulation of pharmacy compounding, and does not have any economic data on the industry at this time. Responses to the NPRM will be important in determining the costs and benefits of any regulation.

Risks: None.

Timetable:
Action Date FR Cite
NPRM  04/00/2001    
Additional Information: See RINs 0910-AB57, 0910-AB59
Regulatory Flexibility Analysis Required: Yes  Government Levels Affected: Federal, State 
Small Entities Affected: Businesses  Federalism: Undetermined 
Included in the Regulatory Plan: Yes 
Agency Contact:
Wayne H. Mitchell
Regulatory Counsel, Office of Regulatory Policy
Department of Health and Human Services
Food and Drug Administration
Suite 3037 (HFD-7), Center for Drug Evaluation and Research, 5600 Fishers Lane, HFD-7,
Rockville, MD 20857
Phone:301 594-2041
Fax:301 827-0951
Email: wayne.mitchell@fda.hhs.gov