Insight

503B outsourcing facilities and pharma manufacturers

Why the growth of 503Bs may be an opportunity for traditional pharma

Spencer Champagne

Spencer Champagne

Managing Director, Healthcare and Life Sciences Strategy, KPMG US

+1 617-875-5445

Rajesh Misra

Rajesh Misra

Principal, Advisory, Life Sciences Operations, KPMG US

Since 2013, the so-called 503B outsourcing facilities have been the only entities permitted to meet the demand for bulk compounded medications in the U.S. The continued growth of the 503B market is a challenge to pharmaceutical manufacturers, by eroding their hospital-channel revenue.

However, a new KPMG report, 503B outsourcing facilities: An opportunity for pharmaceutical manufacturers, argues that traditional pharma still has clear advantages over 503Bs. This means by entering the sector themselves, pharmaceutical manufacturers can exploit new growth opportunities.