What's The Market Like For A Compounding Pharmacy?

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Emin Janaslani

New Member
Sep 6, 2023
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Hello everyone!

I was wondering if anyone had any insight on what a cash only compounding pharmacy's market is looking like nowadays? I am looking specifically into those that do non-sterile hazardous compounding (USP 800 and USP 795). California advice would be a bonus.

The upfront cost of starting an operation like this is around 150K. I know PCCA has a lot of resources and offers guidance, but I'm more trying to learn about if it's even possible to grow and scale a business like this. Are doctor's interested in compounded medications? Are patients willing to spend $100+ on unique compounds rather than just letting insurance cover regular drugs? How do you marketing other than trying to get FaceTime with providers?

If anyone has any experience on this and can speak on it I would love to hear it.


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Don't know the California Market, but the Compounding Pharmacy landscape has taken a huge turn in the last 10 years. We are looking at multi-state mail order companies that keep buying up the independents, like Innovations, T3, others. They have huge marketing budgets and reach with dermatologists. My daughter went to see a Dermatologist for acne. She was prescribed several compounded Rx that were sent directly to an out of state Pharmacy, they filled and sent us the Rx, in minimal time and for a tiny price (for first fill). Amazing how these pharmacies have the dermatologists in their pocket. All chains avoid compounding, most independents are gone.
And no, patients want the easiest, cheapest, most convenient solution.
Good luck going up against big PharmaDerma, the physicians don't care who you are.
My advice, get a job with a big compounding Pharmacy, figure out what angle you need to take.