GLP-1 Compounding Legal Status: What's Actually Legal Now
The FDA declared semaglutide and tirzepatide shortages resolved. Courts upheld those decisions. Here's what compounding is still permitted, what exceptions exist, and what it means for patients.
Compounding "essentially a copy" of semaglutide or tirzepatide is no longer permitted under the shortage exception. However, 503A pharmacies can still compound these medications with a valid prescription if a prescriber documents a specific clinical difference for an individual patient. Courts have upheld the FDA's shortage determinations. Some companies are adding B12, changing doses, or altering formulations to claim a "clinical difference" — whether this is legally defensible remains contested.
Current Status: December 2025
Shortage Status: Resolved (October 2, 2024)
Court Ruling: Judge Pittman upheld FDA decision (May 7, 2025)
503A Grace Period: Ended February 18, 2025
503B Grace Period: Ended March 19, 2025
Shortage Status: Resolved (February 21, 2025)
Court Ruling: Judge Pittman denied preliminary injunction (April 2025)
503A Grace Period: Ended April 22, 2025
503B Grace Period: Ended May 22, 2025
Liraglutide (Saxenda/Victoza): In shortage — compounding under shortage exception still permitted
Dulaglutide (Trulicity): In shortage — manufacturer reports all presentations available
Timeline: How We Got Here
| Date | Event |
|---|---|
| March 2022 | Wegovy added to FDA shortage list |
| August 2022 | Ozempic added to FDA shortage list |
| October 2, 2024 | FDA declares tirzepatide shortage resolved |
| October 2024 | OFA sues FDA over tirzepatide decision |
| December 19, 2024 | FDA reaffirms tirzepatide decision in declaratory order |
| February 18, 2025 | 503A grace period for tirzepatide ends |
| February 21, 2025 | FDA declares semaglutide shortage resolved |
| February 24, 2025 | OFA sues FDA over semaglutide decision |
| March 5, 2025 | Judge Pittman denies tirzepatide preliminary injunction |
| March 19, 2025 | 503B grace period for tirzepatide ends |
| April 22, 2025 | 503A grace period for semaglutide ends |
| April 24, 2025 | Judge Pittman denies semaglutide preliminary injunction |
| May 7, 2025 | Judge Pittman rules in favor of FDA on tirzepatide |
| May 22, 2025 | 503B grace period for semaglutide ends |
The Legal Framework: What's Still Permitted
Under Section 503A of the FD&C Act, compounding pharmacies cannot produce drugs that are "essentially copies" of commercially available drugs — unless specific exceptions apply.
The "Essentially a Copy" Definition
According to FDA guidance, a compounded product is "essentially a copy" if it has:
- The same active ingredient
- The same or similar route of administration
- The same or easily substitutable dosage strength
- The same or similar dosage form
The Clinical Difference Exception
Compounding is still permitted when a prescriber determines that a compounded product provides a "significant difference" (503A) or "clinical difference" (503B) for an individual patient.
FDA does not consider a compounded product to be "essentially a copy" if a prescriber determination of clinical difference for an individual patient is noted on the prescription or order... FDA generally does not intend to question prescriber determinations that are documented in a prescription or notation.— FDA, Compounded Drug Products That Are Essentially Copies of Approved Drug Products Under Section 503A
Documentation Requirements
For the clinical difference exception to apply:
- The prescriber must document the specific clinical reason on the prescription
- If not initially documented, the pharmacist must contact the prescriber and note the rationale
- Documentation must be retained for 6 years (regardless of state requirements)
- Vague rationales like "medically necessary" or "hypersensitivity to commercial product" without specifics are not acceptable
What Changes Actually Create a "Clinical Difference"?
This is where it gets murky. Companies are taking various approaches to continue compounding:
Different Dose Not Commercially Available
A prescriber determines a patient needs a dose between FDA-approved strengths (e.g., 0.375mg instead of 0.25mg or 0.5mg semaglutide).
Legal basis: Different dosage strength with documented patient need.
Allergy to Specific Excipient
Patient has a documented allergy to an inactive ingredient in the commercial formulation.
Legal basis: Medical necessity for different formulation.
Adding Vitamin B12
Some companies add B12 or other ingredients, claiming this provides clinical benefit (e.g., reduced side effects).
Risk: FDA may view as a pretextual workaround. Clinical evidence for benefit is limited.
"Personalized" Dosing
Companies claim any dose adjustment constitutes a clinical difference.
Risk: If the adjustment is to a dose "easily substitutable" for a commercial dose, may not qualify.
Oral/Sublingual/Nasal GLP-1s
Some companies are offering pills, gummies, drops, or nasal versions of semaglutide.
Problem: These formulations have no FDA approval and limited evidence of efficacy via these routes.
Investigational GLP-1s (Retatrutide)
Retatrutide is still in clinical trials and not FDA-approved for any use.
Legal status: Compounding an unapproved drug is prohibited under any circumstances.
We have many patients on many different additives, and I think it can make a huge difference for patients in like their reported side effects and weight loss and perceived benefit.— Myra Ahmad, CEO of Mochi Health, quoted in Advisory Board, May 2025
The compounding law is clear. There must be an individual patient benefit to the personalization. And so Noom works with [compounding] pharmacies to provide personalized medication when it's clinically indicated.— Geoff Cook, CEO of Noom, quoted in Advisory Board, May 2025
The Court Battles
The Outsourcing Facilities Association (OFA) — a trade group representing 503B compounding facilities — sued the FDA over both shortage declarations. Both cases were heard in the U.S. District Court for the Northern District of Texas before Judge Mark Pittman.
Tirzepatide Case: OFA v. FDA (4:24-cv-00953)
Outcome: FDA prevailed. Judge Pittman denied OFA's preliminary injunction on March 5, 2025, and ruled in favor of the FDA on the merits on May 7, 2025.
The court found that:
- FDA acted within its statutory authority in determining shortage status
- The agency's discretion in managing the drug shortage list is broad
- Plaintiffs did not demonstrate sufficient harm to warrant judicial intervention
Semaglutide Case: OFA v. FDA (4:25-cv-00174)
Status: Preliminary injunction denied in April 2025. Final ruling pending as of December 2025.
OFA's argument:
We are deeply disappointed that the [court] misapprehended or failed to take into consideration the clear and convincing evidence that demonstrates that the manufactured supply of semaglutide is not able to meet the enormous demand in the U.S.— Lee Rosebush, Chairman of OFA, April 2025
Novo Nordisk's response:
We are pleased the court has rejected the compounders' attempts to undermine FDA's data-based decision that the shortage of Wegovy and Ozempic is resolved... No patient should have to be exposed to unsafe, inauthentic semaglutide drugs.— Steve Benz, Novo Nordisk Legal Chief, April 2025
Manufacturer Actions: Beyond FDA Enforcement
Eli Lilly and Novo Nordisk haven't relied solely on FDA enforcement:
Cease and Desist Letters
Both companies have been sending cease and desist letters to compounding pharmacies, telehealth companies, and clinics that continue to offer compounded GLP-1s.
Patent Infringement Litigation
Companies have initiated patent infringement lawsuits against compounders. Semaglutide and tirzepatide are protected by multiple patents that don't expire until the 2030s.
Demonstrably Difficult to Compound Petitions
Both manufacturers have submitted petitions to the FDA requesting that their active ingredients be added to the "Demonstrably Difficult to Compound" (DDC) list. If granted, this would permanently prohibit compounding of these drugs under any circumstances — even with a clinical difference justification.
If semaglutide or tirzepatide are placed on the DDC list, no pharmacy could compound them — not 503A, not 503B, regardless of patient need or prescriber documentation. This is a more permanent restriction than the shortage-based enforcement.
State-Level Complications
Adding to the complexity, state Boards of Pharmacy and Boards of Nursing have issued their own guidance — which sometimes conflicts:
- Kentucky Board of Nursing: APRNs must only prescribe FDA-approved GLP-1s; compounded alternatives are not acceptable substitutes
- Kentucky Board of Pharmacy: Allows narrow exceptions for prescriber-documented clinical differences
- Ohio: Has pursued enforcement actions even when providers documented clinical differences
This creates a situation where federal law may permit compounding, but state boards may not — or vice versa.
What This Means for Patients
If You're Currently on Compounded GLP-1s
The compounding pharmacy filling your prescription is operating in a legally uncertain environment. Your options:
- Ask about their legal basis: Is your prescriber documenting a specific clinical difference? If so, what is it?
- Consider transitioning to FDA-approved versions: With shortages resolved, brand-name medications should be more accessible
- Evaluate cost assistance: Novo Nordisk and Eli Lilly both offer manufacturer savings programs
If You're Seeking New GLP-1 Treatment
FDA-approved medications (Wegovy, Ozempic, Mounjaro, Zepbound) are now the safest legal pathway. If cost is a barrier, explore:
- Manufacturer savings cards and patient assistance programs
- Insurance coverage (increasingly common for FDA-approved weight loss medications)
- Legitimate telehealth providers that work with brand-name medications
Sources
- McDermott Will & Emery: Semaglutide Shortage Resolved
- McDermott Will & Emery: GLP-1 Update: Court Backs FDA in Tirzepatide Compounding Case
- Skadden: Compounding and GLP-1s: What To Expect When GLP-1 Drugs Are Removed From FDA's Drug Shortage List
- Foley & Lardner: GLP-1 Drugs: FDA Removes Semaglutide from the Drug Shortage List
- Pharmacy Times: Out of Shortage, Into Controversy: The Fight Over GLP-1 Compounding
- Advisory Board: Companies find ways around end of GLP-1 shortage
- BioSpace: Lilly Wins Court Battle Against Compounders
- Fierce Pharma: US court decision stops compounders from making knockoffs of Novo Nordisk's semaglutide
Understanding Your Options
Whether you're evaluating compounding pharmacies or exploring FDA-approved alternatives, we can help you navigate the landscape.
Medical Disclaimer: All medication decisions should be made in consultation with a licensed healthcare provider. Compounded medications are not FDA-approved.
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