FDA Registered 503B Outsourcing Facility

The Benefits of Stocking 503B-Manufactured Compounded Veterinary Drugs

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Managing a veterinary practice’s inventory of compounded drugs is a balancing act—when stocked medication goes unused, it leads to waste and lost revenue, but not having enough of the right drugs on hand also results in revenue loss and can be detrimental to patient outcomes and client satisfaction. Keeping high-demand veterinary medications stocked sufficiently so they are available in dosages specific to patients’ needs can:

  • Positively impact a practice’s revenue stream.
  • Increase client satisfaction and loyalty rates.
  • Improve patient safety and health outcomes.


Let’s take a closer look at these benefits and how to achieve them:  

Opportunity to Increase Revenue

Effective inventory management can lead to significant revenue gains for veterinary hospitals and clinics. Having the right products and quantities available is a key component to running a profitable practice. Before 503B outsourcing facilities, it was not possible to keep needed compounded drugs in stock. With the Food and Drug Administration’s passage of the Drug Quality Act in 2013 and the new establishment of 503B outsourcing facilities, veterinarians are now able to take advantage of this new revenue potential. Unlike compounded veterinary drugs from traditional 503A compounding pharmacies, which can only be produced in small batches to fill patient-specific prescriptions, compounded medications manufactured by 503B outsourcing facilities can be sold to veterinary hospitals and clinics in large quantities for office use. This means that hospitals and clinics can keep needed medications in their inventory for on-demand prescribing and dispensing requirements.

Additionally, because 503B outsourcing facilities are required to conduct extensive finished product testing on each batch of medication they produce, compounded veterinary drugs from a 503B manufacturer have lengthier expiration dates than compounded medications from traditional 503A compounding pharmacies. As a result, it is feasible to purchase larger orders to keep in inventory without incurring significant costs associated with expiration loss and disposal.

Inventory is a major expense for veterinary hospitals and clinics, second only to labor costs, so knowing which compounded medications should be kept in stock is key. Using the 80/20 rule to make these decisions can help—figure out the top 20% of compounded medications used by the top 20% of your patients, both of which account for 80% of revenue. Use that as a guide in prioritizing which high-use drugs to keep in inventory to meet patient needs.

Considering the costs associated with each phase of the inventory management process is also important. Placing bulk orders for 503B compounded veterinary drugs can reduce costs if bulk order discounts are available, plus bulk ordering also reduces indirect product costs, including staff time spent on non-revenue generating activities like:

  • Placing orders.
  • Receiving orders, opening boxes, and shelving inventory.
  • Paying invoices.


Stay up to date on inventory management best practices. Download our guide for five easy improvements to your practice’s inventory processes. 

Increased Client Satisfaction and Retention

The cost to acquire new clients is high—at least five times more costly than keeping current clients. For this reason, it is important to make client retention key to the sustainable profitability of a veterinary hospital or clinic. One of the most effective ways to improve client retention rates is to provide outstanding customer service and partnering with a 503B outsourcing facility to have in-demand compounded drugs in stock gives veterinary practices a leg up by:

  • Providing clients with high-quality medications tailored to their pet’s needs.
  • Making it more convenient for clients to obtain needed medications by eliminating the need to go to a local 503A compounding pharmacy or through an online pharmacy.
  • Creating another opportunity to nurture the vet-client relationship when counseling clients on how to store and administer the medication.


Improved Patient Safety and Treatment Outcomes

On-hand availability of 503B drugs also increases patient safety. 503B outsourcing facilities that manufacture compounded drugs for veterinary use understand the unique needs of animal patients. Unlike other sources for compounded preparations, their drugs undergo extensive testing in compliance with FDA standards to ensure safety and effectiveness.

When clients can fill prescriptions immediately through the veterinary hospital or clinic, it is advantageous to the patient’s safety and overall treatment quality. Here are a few reasons why:

  • The veterinary staff can ensure their compounded drugs are coming from a 503B outsourcing facility that meets stringent quality and safety requirements for every batch of medication they produce.
  • Treatment can begin right away, avoiding delays due to possible medication shortages and prolonged shipping times, which veterinary practices and clients have experienced during the pandemic.
  • The veterinarian has the opportunity to counsel clients on how to store and administer the medication as well as answer any questions that arise, increasing the likelihood of treatment compliance and positive treatment outcomes.
  • Dosing and medication substitutions are overseen by veterinary staff with knowledge of the nuanced needs of animal patients.
  • Veterinary staff can ensure medications are stored under proper conditions until they are prescribed, so drug quality and effectiveness are maintained.


By having the right balance of high demand 503B compounded medications readily available, your practice can optimize its financial health, patient health, and client satisfaction. With one of the largest selections of 503B compounded drugs manufactured specifically for veterinary use, Epicur Pharma can help you achieve this balance. Create an account to start your order today!

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