Compounding pharmacies and telehealth companies will ultimately need to stop producing their versions of semaglutide following the resolution of the short-term shortage of the manufacturer’s original brand drug product. Compounding pharmacies were previously allowed to create generic versions of the diabetes and weight loss drug due to supply issues, but with the Food and Drug Administration (FDA) now declaring the shortage over, production and sales must cease by April 22 for pharmacies and May 22 for outsourcing facilities. The move reignites debates over safety of compounded drugs as well as the manufacturer’s ability to meet ongoing demand for the original drug products. FDA is separately warning the public about counterfeit drugs sold online, offering a way to report issues with counterfeits on the FDA website. In response to the end of the shortage, a trade group representing compounding pharmacies has filed a lawsuit against FDA, contending that the market demand cannot be met and the shortage should be reinstated.
Urgent care line of business: Plenty of urgent care operators have ancillary businesses promoting weight loss, and most are based on the availability of the generic or compounded versions of semaglutide, which cost less than the brand drugs. “Also, part of the business model is for the urgent care to offer an affordable cash price for both medical services and medication—creating a one-stop shop comparable to diet clubs and digital health offerings,” says Alan A. Ayers, MBA, MAcc, President of Urgent Care Consultants and Senior Editor of JUCM. “Without the ability to resell the compounded versions, it would become a less-valuable medical visit only, then the patient would fill a prescription at a pharmacy, similar to a primary care visit.”