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August 1, 2025

What Is a Compounding Pharmacy — and How It Differs from a Commercial Pharmacy

Written by Amanda Brant, Hillstone Staff Writer

What Is a Compounding Pharmacy?

A compounding pharmacy prepares customized medications based on a prescription from a licensed provider. Instead of dispensing mass-produced drugs, compounding pharmacies use raw pharmaceutical ingredients to create a medication tailored to the unique needs of an individual patient.

This might mean adjusting the strength of a medication, removing allergens or dyes, changing the form (like making a capsule into a cream or a liquid), or combining multiple medications into one.

How Is It Different from a Commercial Pharmacy?

  • Standardized vs. Personalized: Commercial pharmacies dispense medications in fixed strengths and limited forms. Compounding pharmacies create medications tailored to each patient’s specific needs.
  • Ingredient Flexibility: Compounded medications can be made without dyes, preservatives, or other inactive ingredients that may cause sensitivities or allergic reactions.
  • Allergy-Friendly Options: Patients with allergies or sensitivities may benefit from custom formulations that exclude problematic ingredients found in commercial drugs.
  • Customized Strengths: Providers can prescribe a specific dose that isn’t available commercially, and compounding pharmacies can prepare it accordingly.
  • Alternative Routes of Administration: For patients who can’t swallow pills or require localized treatment, medications can be formulated as liquids, topical creams, nasal sprays, or other delivery methods.
  • Pediatric and Veterinary Care: Children and pets often require different strengths, flavors, or forms of medication that aren’t available in standard retail options.
  • Expanded Dosage Forms: Compounded medications can be prepared as troches, suppositories, lollipops, gels, and more- based on what’s most suitable for the patient and the condition being treated.
  • Ongoing Communication: Working with a compounding pharmacy often involves more open communication between the pharmacist, provider, and patient. This helps ensure the formulation aligns with the treatment plan and supports the patient’s comfort and adherence.

How Are Compounded Medications Made?

Unlike commercial medications, which are mass-produced in large manufacturing facilities, compounded medications are prepared in small batches within the pharmacy by licensed pharmacists and trained pharmacy technicians.

Compounding pharmacies adhere to strict protocols and regulatory standards to ensure quality, safety, and consistency. Every step, from weighing raw ingredients to final preparation,  is carefully controlled to align with the prescriber’s instructions and the patient’s needs.

This approach allows for a more individualized treatment option when commercially available medications aren’t the best fit.

When Might a Provider Recommend Compounding?

A provider might prescribe a compounded medication when:

  • A patient is allergic to an inactive ingredient in a commercial drug
  • A child or adult has trouble swallowing pills and needs a different form
  • A medication is temporarily unavailable or discontinued
  • A specific strength or combination is needed that isn’t sold commercially
  • A topical application is needed to target a specific area

Did You Know?

Compounded medications are prescription-only and made specifically for an individual based on their provider’s guidance. They can be prepared in a variety of dosage forms —including creams, capsules, troches, and more — depending on what best supports the patient’s treatment plan.

Explore the different dosage forms offered by compounding pharmacies.