Overview
Compounding pharmacies have long played a role in providing tailored medications when FDA-approved versions are unavailable or unsuitable. Recently, the surge in demand for obesity and diabetes drugs like semaglutide (Wegovy, Ozempic) and tirzepatide (Mounjaro, Zepbound) led some compounding facilities to produce large quantities of these active ingredients. However, the U.S. Food and Drug Administration (FDA) has proposed excluding these substances from a list of bulk drug substances that can be used for compounding, citing no clinical need. This decision has major implications for patients, prescribers, and compounders. Additionally, the FDA appointed Katherine Szarama as acting director of the Center for Biologics Evaluation and Research (CBER), replacing Vinay Prasad after his controversial tenure. This guide explains the regulatory context, step-by-step processes, and common pitfalls to help you understand these developments.

Prerequisites
Before diving into the steps, ensure you have a basic understanding of:
- The role of the FDA in regulating drug safety and efficacy.
- Differences between FDA-approved drugs and compounded medications.
- The concept of bulk drug substances and the 503B compounding provisions under the Drug Quality and Security Act.
- How obesity and diabetes drugs like GLP-1 receptor agonists work.
No prior legal or pharmaceutical expertise is required, but familiarity with these topics will help you grasp the nuances.
Step-by-Step Guide to Understanding the FDA's Decision
Step 1: Understand the FDA's Authority Over Compounding
The FDA regulates compounding under two pathways: traditional (503A) pharmacies that compound on a prescription basis, and outsourcing facilities (503B) that can produce larger quantities without individual prescriptions. The FDA maintains a list of bulk drug substances that 503B facilities may use for compounding, known as the 503B bulks list. Inclusion requires demonstrating a clinical need—meaning the drug is not commercially available in an FDA-approved form or there is a shortage. When the FDA proposes to exclude a substance, like semaglutide or tirzepatide, it means these compounders cannot legally use them for mass production.
Step 2: Learn the Criteria for Clinical Need
The FDA evaluates clinical need based on several factors:
- Whether the drug is in shortage or otherwise unavailable.
- Whether patients have a medical reason (e.g., allergy to an inactive ingredient) that prevents using the FDA-approved product.
- The volume of compounding and potential risks to public health.
For semaglutide and tirzepatide, the FDA determined that both drugs are widely available through approved products (Wegovy, Ozempic, Mounjaro, Zepbound) and that compounding was not driven by clinical necessity but by cost or convenience. This finding prompted the proposal to exclude them.
Step 3: See How the FDA Applied the Criteria
The agency's analysis included:
- Reviewing shortage data: The FDA confirmed that both drugs have been consistently available in the approved supply chain.
- Assessing patient harm: Compounded versions may pose risks like contamination, incorrect dosing, or lack of sterility.
- Balancing access and safety: While compounding can expand access, the FDA prioritized patient safety and patent protections.
As a result, the FDA proposed removing semaglutide and tirzepatide from the 503B bulks list. This is a victory for Novo Nordisk and Eli Lilly, who hold patents on these ingredients.

Step 4: Implications for Consumers and Manufacturers
For patients: If you were using compounded versions, you may need to switch to branded drugs or explore other options. Discuss with your healthcare provider.
For outsourcing facilities: They must cease making these compounded products once the rule is finalized, or risk enforcement actions.
For prescribers: They should inform patients about the change and help them access FDA-approved treatments.
Step 5: Understand the CBER Leadership Change
Katherine Szarama was named acting director of CBER, replacing Vinay Prasad who left after a tumultuous tenure. CBER regulates vaccines, gene therapies, and blood products. Szarama joined the FDA in late 2024 as Prasad’s deputy. This change may affect how the agency handles biologics, including new obesity drugs that use biologic mechanisms. To stay informed, follow FDA announcements and industry news. The permanent director remains unknown; ophthalmologist Houman Hemmati was a top candidate.
Common Mistakes and Misconceptions
- Assuming all compounding is legal: Not all compounded drugs are FDA-approved; they are regulated differently. Bulk compounding without clinical need may be illegal.
- Thinking the FDA banned the drugs entirely: The proposal only affects large-volume compounding; traditional pharmacy compounding under a prescription might still be allowed in some cases.
- Believing compounded versions are equivalent to branded: Compounded drugs may differ in purity, potency, and safety. The FDA does not review them before marketing.
- Overlooking the role of patents: The FDA's decision aligns with protecting intellectual property, but it also aims to ensure drug quality.
Summary
This guide walks you through the FDA's proposed exclusion of semaglutide and tirzepatide from bulk compounding, driven by a lack of clinical need. It explains the regulatory framework, step-by-step evaluation, and implications for stakeholders. Additionally, it covers the leadership change at CBER with Katherine Szarama as acting director. Understanding these elements helps patients, providers, and industry professionals navigate the evolving landscape of obesity drug access and FDA oversight.