Quick Facts:
- The veterinary compounding market is expected to increase from US$ 1.1 Bn in 2020 to over US$ 2.7 Bn by 2031, expanding at a CAGR of around 8.5%
- CNS agents and anti-infective agents show the most lucrative market opportunity
- 2/3 of the market share will come from oral formulations
Source: Persistence Market Research
- Pet healthcare accounts for about 30% of the $100 billion-plus pet industry (American Pet Products Association)
- Animal medication sales, including over-the-counter and prescription, added up to roughly $10.8 billion in 2020 (Packaged Facts)
- Pet medication sales have grown at a healthy CAGR of 9% since 2017 (Packaged Facts)
Veterinary practices are unique in that they can sell medications directly to their clients, which provides an important revenue stream for the business. However, retail stores and online pharmacies have stolen a lot of market share, especially during the pandemic. An article in Veterinary Practice News claims that one “online pet retailer added more than five million customers during 2020 and net sales grew 45 percent.”
These online retailers not only pose a threat to veterinary practices’ revenue, but they also create challenges in regulating quality animal healthcare standards. Most U.S. states require veterinarians to issue prescriptions to clients upon request, allowing the client to fill the prescription at the pharmacy of their choosing. Clients who used to depend on the vet for prescriptions now have more freedom, but veterinarians continue experiencing lost revenue from what used to be a high-value revenue stream with large margins.
So how can veterinary clinics regain market share in pet pharmaceuticals and ensure the best quality of care for patients? Vet hospitals and clinics have to adapt to retain pharmacy revenue, but they can still be competitive, and in the process, increase client loyalty.
Explore how these three approaches can help your practice:
1. Elevate Your Veterinary Pharmacy
Use the 80/20 rule to identify in-demand commercial and compounded drugs and keep those in stock. Consider limiting the pharmaceuticals you carry to those that serve your clientele the best, and most often. Carrying multiple versions of similar items is expensive, especially flea and tick preventives which are more of a commodity. Stand out from the mass retailers and refocus your offerings on the highest quality, in-demand medications.
When stocking medications, pay close attention to shelf life. When ordering compounded medications, keep in mind that 503B manufactured products have a shelf-life range of months to years, without compromising quality. Medications from 503A pharmacies with beyond-use dates (BUDs) have small usage windows – as little as 12 hours for sterile products – which can create a lot of waste. Stocking niche medications is another way to differentiate and increase revenue.
2. Take Control with Online Ordering
Today’s pet owners value convenience and expect online ordering, automatic refill reminders, and home delivery. Relying on clients to remember prescription refills, without calling the clinic in a panic, is not a sound business model. Avoid the hassle and provide the service your clients expect by setting up an online ordering system. Use the system to send reminders about required lab tests and blood work – this simple activity can remove barriers to prescription refills.
Explore more tips for improved inventory management processes – for both your practice and your clients!
3. Stock 503B Manufactured Drugs to Maximize Profits
When a commercially available drug is not available and you look for a compounded medication to fill this need, consider stocking manufactured drugs from a 503B outsourcing facility before purchasing from a 503A compounding pharmacy. 503B manufacturers adhere to FDA guidelines and meet strict quality regulations regarding sterility, stability, and potency. Did you know that per federal law, hospitals are permitted to purchase 503B medications for unlimited hospital administration and dispensing (FDA Federal SEC. 503B. [21 U.S.C. 353b])? By stocking these drugs, veterinary hospitals can offer their clients a wider range of treatment options and earn a higher profit margin on each sale.
Why Carry 503B Medications?
- Improves patient safety
- Long shelf life (less waste!)
- Improves treatment adherence
Offering 503B medications can help veterinary clinics remain competitive by growing revenue, all while helping vets deliver the best possible service to clients and patients. When selecting an outsourcing partner, be sure to choose one with a proven track record of quality and safety, which even includes how the products are packaged (more on that here!).
Want to review more best practices for dispensing and managing veterinary pharmaceuticals?
Our eBook offers more guidance on how to improve your veterinary pharmacy revenue:
More to Read

Why Quality Matters in Compounded Veterinary Ophthalmology Medications
What Should Veterinarians Know About Ophthalmic Eye Drops? Quality matters in every veterinary medication, but when it comes to ophthalmic medications, the stakes are even higher. Eyesight plays a critical role in an animal’s quality of life, and veterinary professionals know that even the slightest variation in ophthalmic preparations can impact healing, comfort, and outcomes. When veterinary ophthalmic medications fail to meet basic standards of quality and consistency, the consequences can extend far beyond the patient. They can influence treatment outcomes, client trust, and confidence in your medication provider. Dr. DJ Haeussler (BS, MS, DVM, DACVO) has seen firsthand how low-quality eye drops can negatively impact patient outcomes and the veterinarian-client relationship. From delayed healing to frustrated pet owners, the ripple effects of unreliable medications are real—and preventable. He helps us break down the common problems with compounded veterinary ophthalmology products today and what to look for in your products and medication partner. Only have 3 minutes? Watch the highlights from our interview with Dr. Haeussler. https://vimeo.com/1191194793/c1c371f5dd?fl=ip&fe=ec What problems are veterinarians seeing with eye drops? Veterinary ophthalmology often relies on compounded medications to meet specific clinical needs. However, not all compounded products are created equal. Many veterinary professionals have experienced challenges with compounded ophthalmic medications, including: Changing formulations without clear communication Inconsistent beyond-use dating Variability in potency or effectiveness Unpredictable stability once dispensed Patient discomfort during administration These issues can make it difficult to determine whether a treatment failure is due to disease progression or the medication itself. There have been many cases where variability in formulation or quality has led to stinging or irritation in the patient’s eyes, complicating treatment compliance even further. In ophthalmology, where precision matters, even small inconsistencies can lead to delayed healing, increased follow-ups, and client frustration—especially when treatment becomes uncomfortable or difficult to administer. Looking for ways to evaluate your medication provider? We’ve got tips for that. I want to know those 5 best qualities Why is consistency important in veterinary ophthalmology medications? Consistency is not just a preference—it is a clinical necessity. Unlike many systemic treatments, ophthalmic medications are applied directly to sensitive tissues, which means they must meet high standards in: Sterility – to prevent ocular infection Potency accuracy – to ensure effective dosing Stability – to maintain performance over time Variability in traditional compounding (503A pharmacies) can lead to differences between batches, while manufacturing under stricter regulations with process control can reduce those risks and support more predictable outcomes. For veterinary teams, that reliability translates into greater confidence in prescribing and clearer expectations for patient response. How do compounded veterinary medications vary in quality standards? Not all compounding environments operate under the same level of oversight or manufacturing rigor. Traditional compounding approaches can introduce variability in potency, sterility, and consistency from one preparation to the next. By contrast, 503B manufacturing facilities are designed to produce compounded medications at scale under current Good Manufacturing Practices (cGMP), with an emphasis on batch consistency and quality control. This distinction matters, especially for medications used frequently in practice or across multiple patients. In fact, when a medication is not available through a commercial manufacturer, guidance often points clinicians toward 503B products as a higher-quality alternative due to their greater consistency and reduced variability compared to traditional compounding. How does packaging impact ophthalmic drug quality? Quality doesn’t stop at formulation. Packaging can also play a major role in quality. Many ophthalmic medications, including tacrolimus eye drops, are highly sensitive to light exposure. Improper packaging can lead to: Drug degradation Reduced potency Shortened shelf life Less predictable dosing If the appropriate packaging is not used in the manufacturing process, the quality of the product is at risk before it even reaches the patient. Opaque bottles help protect light-sensitive products from light, aiding in drug stability and supporting consistent performance and reducing waste for veterinary practices. If you’re receiving eye drops in clear bottles, that’s a warning sign to consider the quality of the product you’re receiving. Packaging Matters! Read more about how packaging affects medication quality. I need to know the details about packaging quality. What should veterinarians look for in an ophthalmic medication provider? For veterinary professionals, choosing an ophthalmic product isn’t just about availability—it’s about trust. You and your practice need to trust that: The formulation will remain consistent over time The beyond-use dating reflects real stability data The medication will perform reliably across patients The manufacturer is transparent and accountable Your provider should be able to confirm the quality of their products and reinforce your trust in them. Key indicators of quality include proven safety standards, batch-to-batch consistency, verified potency and label accuracy, reliable inventory and dating, transparency and support. 503A pharmacies are not required to conduct final product testing. They also have shorter USP limited-beyond-use dates compared to stability-indicating beyond-use dates. Compounded medications are not generics. Products from different facilities containing the same active ingredient often differ in formulation, testing, regulatory requirements, and dating. Variations between 503A and 503B facilities and among individual compounding pharmacies can negatively impact quality, consistency, and the animal’s overall health. How Epicur sets a higher standard for ophthalmic medications. Epicur’s approach to veterinary ophthalmic medications is centered on reducing variability and increasing confidence. As a 503B outsourcing facility, Epicur follows current Good Manufacturing Practices (cGMP)—which requires final product testing including sterility, potency, pH, content uniformity, disintegration and more. This allows for: Greater batch consistency Validated stability and longer, proven expiration dates of up to 365 days Reduced variability compared to traditional compounding Additionally, Epicur prioritizes packaging decisions that support drug integrity, including opaque containers for light-sensitive ophthalmic medications, with testing performed both before and after packaging to verify stability and purity. This combination of manufacturing rigor and thoughtful product design helps veterinary professionals prescribe with confidence and gives pet owners peace of mind. Together, we can set a higher standard for ophthalmic care. By prioritizing consistency, sterility, stability, and transparency, practices can reduce uncertainty and focus on what matters most: delivering better care and

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The Referral Dilemma: Choosing the Best Partners in Veterinary Medicine
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