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503b Outsourcing

Meaning

503b Outsourcing defines the practice where a compounding pharmacy or clinical practice contracts the preparation of non-patient-specific, large-batch compounded drugs to an FDA-registered Outsourcing Facility operating under Section 503B of the Federal Food, Drug, and Cosmetic Act. These specialized facilities must adhere to stringent Current Good Manufacturing Practices (CGMP), similar to commercial manufacturers, ensuring higher quality control, sterility, and potency testing for compounded preparations, including certain hormonal agents and peptides. This structure provides a crucial pathway for clinicians to access sterile, consistently produced medications in quantities suitable for office use and broader patient populations. The 503B facility acts as a quality-assured source, bridging the gap between traditional patient-specific compounding and large-scale pharmaceutical production.