6 Million Prescriptions and a Crackdown
Between 2022 and early 2025, the United States ran short on two of the most sought-after drugs in modern medicine. Semaglutide (sold as Ozempic and Wegovy) and tirzepatide (Mounjaro and Zepbound) couldn't be manufactured fast enough to meet demand. Both had been in shortage since 2022, and patients who needed them for type 2 diabetes management or weight loss faced months-long waitlists.
Compounding pharmacies filled the gap. Under federal law, when an FDA-approved drug is in short supply, licensed pharmacies can prepare their own versions using the same active ingredient. The economics were hard to argue with: compounded semaglutide sold for roughly $199 per month, compared to around $1,300 for brand-name Wegovy without insurance. Limited coverage from insurers pushed even more patients toward the cheaper option.
At the J.P. Morgan Healthcare Conference in January 2026, Novo Nordisk CEO Mike Doustdar estimated that as many as 1.5 million Americans were using compounded versions of GLP-1 drugs. His candor was notable. "It's not because this one-and-a-half million patients like to have unsafe, knock-off versions of our products," Doustdar said. "They grabbed a part of the consumers that simply were price sensitive to our products."
Scott Brunner, CEO of the Alliance for Pharmacy Compounding, put the scale in historical context: "I can't think of another time in history when as many patients were served by a particular compounded therapy," he told Pharmaceutical Technology.
Then the shortages ended. And everything got complicated.
What Changed When the Shortage Ended
The FDA declared the tirzepatide shortage resolved in December 2024 and the semaglutide shortage resolved on February 21, 2025. Both decisions came after Novo Nordisk and Eli Lilly confirmed to the FDA that their manufacturing capacity could meet projected national demand.
Under federal law, compounding copies of an FDA-approved drug is only permitted while a shortage exists. Once the shortage ends, the drug becomes "commercially available," and compounders face strict limits on producing what the FDA calls "essentially a copy." The agency gave pharmacies a wind-down period: 60 days for traditional (503A) pharmacies and 90 days for outsourcing facilities (503B) to stop compounding, dispensing, and distributing copies.
For semaglutide, those deadlines passed in April and May 2025. For tirzepatide, they passed even earlier, in February and March 2025.
But the products didn't disappear. Telehealth platforms like Hims & Hers, Mochi Health, and others kept selling compounded GLP-1 medications. Hims & Hers projected $2.4 billion in revenue for the year despite the shortage ending. These companies argued their formulations weren't "essentially copies" because they had been modified — most commonly by adding B vitamins.
The FDA responded with force. On February 6, 2026, Commissioner Martin A. Makary announced the agency's intent to restrict GLP-1 active pharmaceutical ingredients used in compounded drugs being "mass-marketed by companies — including Hims & Hers and other compounding pharmacies — as similar alternatives to FDA-approved drugs."
The B-Vitamin Loophole, Explained
The core legal question is whether a compounded drug is an "essentially a copy" of a commercially available one. If it is, compounders can't produce it regularly post-shortage. If it's different enough, it may qualify as a unique formulation for an individual patient.
Think of it like a recipe. If you bake the exact same chocolate cake as a bakery down the street, that's a copy. But if you add espresso powder and change the frosting ratio, you've arguably made something different — even though the base cake is the same. Compounders applied this logic by adding ingredients like vitamin B6 (pyridoxine), vitamin B12 (cyanocobalamin), or glycine to their semaglutide formulations.
Robin Feldman, a law professor at the University of California, explained to NPR that compounders could "add vitamin B12 or another vitamin, as many compounders are already doing, and the FDA would decide that means the compounded drugs are no longer copies."
But on April 1, 2026, the FDA directly addressed this strategy. In an updated policy clarification, the agency stated it "may consider a compounded drug product that combines semaglutide API and another API, such as vitamin B12 (cyanocobalamin), to be essentially a copy of a commercially available drug product" when the strengths are within 10% of commercially available products and the route of administration is the same.
Brunner, the compounding industry's top advocate, acknowledged the limits of simply combining ingredients. "Formulations or dosage strengths that aren't commercially available aren't considered a copy," he told Pharmaceutical Technology. "However, simply combining two commercially available drugs into one, without a prescriber's adjustment of dosage form or strength, would be considered a copy under a strict reading of FDA guidance."
Martha M. Rumore, a pharmacist-attorney at Frier Levitt, outlined a more specific example in Pharmacy Times: pyridoxine at 4 mg/0.5 mL is a strength that isn't commercially available, making it a legitimate clinical difference. But pyridoxine at 100 mg/mL is commercially available and wouldn't qualify.
The practical takeaway: adding B vitamins to semaglutide doesn't automatically make it legal. The added ingredient must be at a non-commercial strength, and a prescriber must document why that specific combination serves a clinical need for that specific patient. A blanket "patient prefers compounded version" or "insurance won't pay" does not count as a valid clinical difference, according to FDA guidance.
Two Lawsuits, 30 Warning Letters, and a Lot of Confusion
The compounding industry hasn't accepted the FDA's position quietly. The Outsourcing Facilities Association (OFA) filed two federal lawsuits against the FDA in the Northern District of Texas — one over tirzepatide (Case 4:24-cv-00953) and one over semaglutide (Case 4:25-cv-00174). Both challenged the FDA's decision to remove these drugs from the shortage list, arguing the agency used informal adjudication instead of the formal rulemaking process that federal law requires.
The courts sided with the FDA both times. A Texas federal judge denied the preliminary injunction for tirzepatide on March 5, 2025. The semaglutide injunction was denied on April 24, 2025. OFA appealed the tirzepatide decision to the Fifth Circuit on March 10, 2025, but no reversal has materialized.
Meanwhile, the FDA escalated on another front. In September 2025, the agency sent a warning letter to Hims & Hers CEO Andrew Dudum, specifically citing the company's claims that its compounded semaglutide was a "weekly injectable GLP-1 with the same active ingredient as Ozempic and Wegovy" and contained "clinically proven ingredients." The FDA called these claims false and misleading — compounded drugs, by definition, are not FDA-approved and cannot claim sameness with approved products.
By March 2026, the crackdown widened. The FDA issued 30 warning letters to telehealth companies in a single day for making false or misleading claims about compounded GLP-1 products. Commissioner Makary called it "a new era" and said the agency had sent "thousands of letters" to pharmaceutical and telehealth firms over the preceding six months — more than had been sent in the entire preceding decade.
Separately, Eli Lilly and Novo Nordisk sent their own cease-and-desist letters to compounding pharmacies and physician offices demanding they stop all compounding, dispensing, and sale of compounded GLP-1s. The pharmaceutical companies also sued some compounders over brand name usage in marketing and impurities found in compounded products.
1,150 Adverse Events the FDA Knows About
Compounded drugs occupy an unusual regulatory space. They aren't reviewed by the FDA for safety, effectiveness, or quality before reaching patients. Traditional pharmacies (503A) aren't even required by federal law to report adverse events to the FDA. That means the actual number of problems is almost certainly higher than what FDA data shows.
As of July 31, 2025, the FDA had received 605 reports of adverse events associated with compounded semaglutide and 545 reports associated with compounded tirzepatide. Some of these were serious enough to require hospitalization.
The problems fall into several categories.
Dosing errors are the most common. The FDA received multiple reports of adverse events requiring hospitalization linked to patients measuring and self-administering incorrect doses, and in some cases, healthcare professionals miscalculating doses. Unlike branded auto-injector pens with pre-set doses, compounded versions often come in multi-dose vials that require patients to draw up their own injections.
Quality control failures are a separate concern. When the FDA inspected MedisourceRx — a compounding pharmacy acquired by Hims & Hers in September 2024 — inspectors found troubling problems including bugs at the facility. One patient had been hospitalized for three nights with severe stomach issues after taking compounded semaglutide in January 2025. MedisourceRx failed to report this to the FDA within the required 15-day window.
Improper storage adds another layer of risk. Injectable GLP-1 drugs require refrigeration, but the FDA has received complaints about compounded GLP-1s arriving warm or with inadequate ice packs — something that can degrade the active ingredient and make the drug either less effective or unpredictable.
Counterfeit products are the most alarming category. The FDA has identified fraudulent compounded semaglutide and tirzepatide in the US market with labels listing pharmacies that either don't exist or didn't actually compound the product. Some products have been sold labeled "for research purposes" or "not for human consumption" but marketed directly to consumers with dosing instructions.
The FDA has also flagged that some compounded products use semaglutide salt forms — including semaglutide sodium and semaglutide acetate — which are chemically different from the active ingredient in approved drugs. The agency says there's no evidence these salts have the same properties and no lawful basis for their use in compounding.
What's Actually Legal in April 2026
The rules are complicated, but here's where things stand based on the FDA's April 1, 2026 update.
Neither semaglutide nor tirzepatide appears on the FDA's drug shortage list or the 503B bulks list. This means outsourcing facilities (503B) cannot legally compound either drug at all — the shortage exception is gone, and neither ingredient qualifies through the alternative "clinical need" pathway.
Traditional pharmacies (503A) have a narrow path. They can compound a GLP-1 formulation for an individual patient if a prescriber determines and documents that the compound contains a change producing a "significant difference" — a clinical difference — from the commercially available version, and that this difference is needed for that specific patient.
The "Essentially a Copy" Test: A compound is considered essentially a copy if it has (1) the same active ingredient, (2) the same or similar strength within 10%, and (3) the same route of administration as the approved drug. If all three are true and no documented clinical difference exists, the compound can't be produced regularly.
Even for formulations that qualify as "not essentially a copy," the FDA limits production. Compounders who do produce an essentially-a-copy formulation can fill no more than four prescriptions per month of that specific formulation without triggering the "regularly or in inordinate amounts" prohibition.
| Category | Can Compound GLP-1s? | Conditions |
|---|---|---|
| 503B Outsourcing Facilities | No | Neither drug is on shortage list or 503B bulks list |
| 503A Pharmacies (copy) | Very limited | Max 4 prescriptions/month of any essentially-a-copy formulation |
| 503A Pharmacies (modified) | Yes, with documentation | Prescriber must document clinical difference for individual patient; non-commercial strength required |
| Telehealth platforms | Cannot compound directly | Must partner with licensed compounders who follow the rules above; cannot make misleading marketing claims |
Marketing rules are equally strict. Companies cannot claim that compounded products are "generic versions" of FDA-approved drugs, that they use the "same active ingredient," or that they are "clinically proven." Making these claims constitutes misbranding under the Federal Food, Drug, and Cosmetic Act, and the FDA has threatened seizure and injunction for violations.
One more line that cannot be crossed: retatrutide and cagrilintide cannot be used in compounding under any circumstances. These investigational GLP-1 drugs are not components of any FDA-approved product.
What to Do If You're Taking Compounded GLP-1s Right Now
If you're one of the estimated 1.5 million Americans currently using a compounded GLP-1, the ground has shifted under you. That doesn't mean you need to panic, but it does mean you should take some concrete steps.
Talk to your prescriber — not the telehealth platform's customer service team. The clinical difference determination that makes compounding legal has to come from a prescriber who documents why you specifically need a modified formulation. If your provider can't articulate a clinical reason beyond cost or convenience, the legal basis for your prescription may not hold up.
Check what you're actually getting. Ask your pharmacy for a certificate of analysis (COA) that shows the potency and sterility testing results for your specific batch. A pharmacy that can't or won't provide this information is a red flag. The FDA recommends patients not use any injectable GLP-1 drug that arrives warm or without adequate refrigeration.
Know that branded options have gotten cheaper. Novo Nordisk launched an oral version of Wegovy in January 2026 at a starting cash price of $149 per month — actually below the typical cost of compounded injectables. Eli Lilly and Novo Nordisk have also launched their own direct-to-consumer pharmacy channels with reduced pricing.
Prepare for possible disruption. If you're using a 503B outsourcing facility's product, your source may be shutting down its GLP-1 line entirely. If you're using a 503A pharmacy, verify they have the proper documentation for your prescription — including the prescriber's clinical difference determination, which must be retained for six years.
Report problems. If you experience adverse effects from any compounded medication, report them to the FDA's MedWatch program. Given that 503A pharmacies aren't required to report adverse events to the FDA, patient reports are one of the few ways the agency learns about problems with compounded drugs.
Whether future shortages will return remains an open question. GlobalData pharma analyst Costanza Alciati told Pharmaceutical Technology that as GLP-1s gain approval for additional indications beyond diabetes and obesity, "there's going to be a higher demand and subsequent future shortages" are possible. If that happens, the compounding rules would shift again.
Frequently Asked Questions
Is compounded semaglutide illegal in 2026?
Not categorically, but the legal path is narrow. Traditional (503A) pharmacies can still compound semaglutide if a prescriber documents a clinical difference for a specific patient and the formulation uses a non-commercial strength or combination. Outsourcing facilities (503B) cannot compound semaglutide at all since it's no longer on the shortage list or the 503B bulks list. Compounding a straight copy without clinical justification is a violation of federal law.
Does adding vitamin B12 to compounded semaglutide make it legal?
Not automatically. The FDA's April 2026 guidance specifically addresses this, stating that combining semaglutide with B12 may still be considered "essentially a copy" if the strengths match commercially available products within 10%. The added ingredient must be at a non-standard strength, and the prescriber must document why the combination serves a specific clinical need for the patient.
What are the safety risks of compounded GLP-1 drugs?
The FDA has documented dosing errors leading to hospitalization, quality control failures at compounding facilities, products arriving without proper refrigeration, and counterfeit products with fake pharmacy labels. As of July 2025, the agency had received over 1,150 adverse event reports for compounded semaglutide and tirzepatide combined, and it considers these numbers likely underreported.
Are compounded GLP-1s the same as generic GLP-1s?
No. Generic drugs go through the FDA's approval process, which verifies they contain the same active ingredient in the same amount and work the same way as the brand-name drug. Compounded drugs skip this process entirely. They are not FDA-approved and cannot legally be marketed as generics or equivalents of approved drugs.
What should I do if my compounded GLP-1 supply is cut off?
Talk to your prescriber about transitioning to an FDA-approved alternative. Branded options have become more affordable — oral Wegovy launched at $149 per month in January 2026. Your prescriber can also explore whether a legitimately modified compounded formulation is appropriate for your specific medical situation.
Medical Disclaimer
This article is for informational and educational purposes only and is not medical advice, diagnosis, or treatment. Always consult a licensed physician or qualified healthcare professional regarding any medical concerns. Never ignore professional medical advice or delay seeking care because of something you read on this site. If you think you have a medical emergency, call 911 immediately.












