We now launch NP practices in all 50 states.Learn more

Are compounded GLP-1s still legal?
What providers need to know about compounded semaglutide, tirzepatide, and retatrutide.

Prax Health Research TeamPublished October 27, 20266 min read

The compounded semaglutide or compounded tirzepatide prescription you could write in 2024 can put you at risk in 2026. While both drugs were on the FDA drug shortage list, federal law let pharmacies compound copies. However, the FDA declared both shortages over in 2025. Since then, the FDA, state boards, state attorneys general, and drugmakers have all moved against compounded as well as unapproved GLP-1s. Here is where the law stands in 2026 for the NPs, PAs, and physicians who prescribe GLP-1s, and what the latest enforcement means for your practice.

Only in narrow cases, and never simply to offer a cheaper version of a branded GLP-1 such as Wegovy (semaglutide) or Zepbound (tirzepatide). Federal law (section 503A of the Food, Drug, and Cosmetic Act) bars a pharmacy from compounding drugs that are “essentially copies” of a commercially available drug “regularly or in inordinate amounts.” Now that both shortages are resolved, the FDA treats Wegovy, Zepbound, and other approved GLP-1s as commercially available.

The exception is a change made for a specific, named patient that produces a “significant difference,” as determined by the prescriber (21 U.S.C. § 353a(b)(2)). A classic example is a documented allergy to an inactive ingredient in the approved product. This is viewed as a justifiable or “medically necessary” reason to create a compound medication using a patented active ingredient. Under the FDA’s 2018 guidance, a compounded drug is a copy if it has the same active ingredient, the same route, and the same or a similar strength. In the FDA’s case, “similar” means “within 10 percent” of the commercial product’s strength.

Can providers still prescribe compounded tirzepatide or compounded semaglutide?

The tirzepatide shortage ended in December 2024, the pharmacy grace period ended March 5, 2025, and the Fifth Circuit upheld the FDA’s decision in August 2026. Search results saying compounding “can resume” date from October 2024 and are out of date.

Similarly, the semaglutide shortage ended in February 2025, and the pharmacy grace period ended April 24, 2025.

Notably, adding an ingredient doesn’t necessarily make a compound compliant. For example, the FDA says a semaglutide and B12 injection still counts as a copy when each ingredient is within 10 percent of commercial strength. In another recent example, the FDA said the same about tirzepatide with niacinamide in its 2026 letter to Empower Pharmacy. State medical and nursing boards may also question whether an add-in was clinically justified.

When did the FDA end compounding for semaglutide and tirzepatide?

Tirzepatide on March 5, 2025, and semaglutide on April 24, 2025, for 503A pharmacies. Each shortage decision came with a short grace period, and each grace period was tied to court rulings in lawsuits brought by the Outsourcing Facilities Association.

Drug Shortage resolved 503A pharmacies (grace period ended) 503B outsourcing facilities (grace period ended)
Tirzepatide (Zepbound, Mounjaro) December 19, 2024 March 5, 2025 March 19, 2025
Semaglutide (Wegovy, Ozempic) February 21, 2025 April 24, 2025 May 22, 2025

The FDA originally set the 503A deadlines at February 18 and April 22, 2025, then extended each until a federal court ruled on a preliminary injunction. The court denied both injunctions, on March 5 and April 24. As of the FDA’s April 1, 2026 update, neither drug is on the shortage list or on the 503B bulks list, and on May 1, 2026, the FDA proposed keeping semaglutide, tirzepatide, and liraglutide off the 503B bulks list entirely.

What has the FDA done since the GLP-1 shortage ended?

It has restricted GLP-1 ingredients, banned specific marketing claims, and sent several rounds of warning letters.

In September 2025, the FDA sent warning letters to telehealth companies and compounders over GLP-1 marketing as part of a broader push on deceptive drug advertising. On February 6, 2026, the FDA announced it would restrict GLP-1 active ingredients intended for non-approved compounded drugs that are mass-marketed as alternatives to approved products. The statement says companies can’t call compounded products generic versions, can’t say they contain the same active ingredient, and can’t say they are clinically proven, and it warns that violations may lead to seizure and injunction without further notice. On March 3, 2026, the FDA sent 30 more warning letters to telehealth companies over compounded GLP-1 marketing.

Does a “significant difference” note protect the prescriber?

Not if it’s standard or templated, meaning the same reason pasted over and over again for many patients. For example, on September 18, 2026, the FDA issued a warning letter to Empower Pharmacy, a large Houston 503A compounder, over compounded tirzepatide with niacinamide and semaglutide with vitamin B12. The FDA said the volume of orders suggested the differences from the approved products were “pretextual,” meaning an excuse to compound rather than a real clinical need.

The FDA cited three kinds of evidence: prescriptions with no significant-difference determination at all, prescriptions whose significant-difference statements were repeated word for word across many records, which suggested they were “pre-generated for selection by the prescriber,” and the sheer number of orders. The FDA also said that third-party technology platforms that give prescribers pre-selected menu options for a significant-difference statement call into question whether those determinations were individualized. For example, ordering compounded GLP-1s through a pharmacy or telehealth portal that offers a dropdown of reasons.

The warning letter went to the pharmacy. However, the prescriptions behind it were written by prescribers, and those prescriptions are now part of an FDA record.

Can providers prescribe retatrutide before FDA approval?

No. Retatrutide, Eli Lilly’s investigational GLP-1, GIP, and glucagon receptor agonist, is not approved for any use, and the FDA says it cannot be used in compounding under federal law. The FDA told the Federation of State Medical Boards and the National Council of State Boards of Nursing this in a March 31, 2025 letter. It has since warned telehealth companies, ingredient distributors, outsourcing facilities, and “research use only” sellers over retatrutide.

Retatrutide has extremely promising clinical trial data: in Lilly’s TRIUMPH-1 trial, the 12 mg dose produced 28.3 percent average weight loss over 80 weeks, and Lilly plans to submit it to the FDA in early 2027. However, until approval, patients can get it only through a clinical trial.

Who is at risk for compounded GLP-1s, the prescriber or the pharmacy?

Both. While FDA letters have mostly gone to pharmacies and telehealth companies, prescribers face additional risks.

  • State boards. A board of nursing or medicine judges whether a prescription met the standard of care, and a compounded copy without a documented, patient-specific reason is hard to defend.

  • State attorneys general. Ohio warned 14 med spas in April 2025, and Connecticut sent letters to clinics, med spas, and practices in May 2025 over compounded GLP-1 claims.

  • Drugmakers. Novo Nordisk sued Hims & Hers in February 2026, and law firms report that Novo and Lilly have sent cease-and-desist letters to clinics and prescribers.

  • Payment and ad partners. Stripe must approve telehealth and online pharmacy businesses before processing their payments. LegitScript, which certifies health businesses for card networks and ad platforms like Google, treats any claim that a compounded GLP-1 is FDA-approved as a violation.

Advertising is where most practices get caught. “Same active ingredient as Wegovy” and “generic Zepbound” are phrases the FDA named in February 2026.

What should providers prescribe instead?

FDA-approved GLP-1s, which now cost far less than they did when compounding took off. For a patient whose commercial plan covers weight loss drugs, a manufacturer savings card can bring Zepbound, Wegovy, or Foundayo down to $25 a month, which is the cheapest path by far. Self-pay prices through LillyDirect and NovoCare Pharmacy start at $149 a month, and eligible Medicare patients can get Wegovy, Foundayo, or the Zepbound KwikPen for $50 a month through the CMS GLP-1 Bridge.

Our guide to making GLP-1s affordable for your patients covers each payment path step by step. For any patient who truly needs a compounded formulation, document in the chart the “change, made for an identified individual patient, which produces for that patient a significant difference” from the approved product (21 U.S.C. § 353a(b)(2)).

We love talking through the nuances of how providers grow their practices compliantly and sustainably. A free call with the Prax team can help you plan your practice and keep you on the right side of regulations.

This guide is for general information only and isn’t legal, tax, or medical advice. Federal and state rules on compounded drugs change. Talk with a qualified professional about your situation.

Last reviewed: October 27, 2026. Reviewed by: Prax Health Research Team.

Disclaimer: The information and/or resources provided in this post and elsewhere on the Prax Health site is provided for general informational purposes only and to assist you as you evaluate engaging in Prax Health’s services. It is not intended as, and Prax Health, Inc. does not provide, medical advice, diagnosis or treatment nor is it intended to be legal or tax advice.

Frequently asked questions

Are compounded GLP-1s still legal?
Only in narrow cases. A 503A pharmacy can compound semaglutide or tirzepatide for an identified patient when the prescriber documents a significant difference for that patient. A 503A pharmacy may not compound copies of Wegovy or Zepbound “regularly or in inordinate amounts,” such as routinely as a cheaper option, now that the GLP-1 shortages are resolved.
Can doctors still prescribe compounded tirzepatide?
Not as a routine substitute for Zepbound. The 503A grace period ended March 5, 2025, and the Fifth Circuit upheld the FDA’s shortage decision in August 2026.
Is compounded semaglutide still legal?
Only in narrow cases. The 503A grace period ended April 24, 2025.
Is a lower price a valid reason to prescribe a compounded GLP-1?
No. FDA guidance says a lower price is not enough to establish that a compounded drug isn’t essentially a copy.
Is retatrutide legal to prescribe?
No. It isn’t approved for use yet, and the FDA says it can’t be used in compounding under federal law. Patients can get it only through a clinical trial until approval.
Is a templated significant-difference statement enough?
The FDA’s September 2026 warning letter to Empower Pharmacy said statements repeated word for word across many prescriptions, or picked from a platform’s menu, call the prescriber’s determination into question.
What’s the first step?
We love talking through the nuances of how providers grow their practices compliantly and sustainably. A free call with the Prax team can help you plan your practice and keep you on the right side of regulations.

Sources

  1. 21 U.S.C. § 353a (FD&C Act section 503A) — the essentially-a-copy limit and the prescriber’s significant-difference exception.
  2. FDA, FDA clarifies policies for compounders as national GLP-1 supply begins to stabilize — shortage resolution dates, grace period end dates, the four-prescription limit, and the April 1, 2026 copy and B12 clarification.
  3. FDA, Compounded Drug Products That Are Essentially Copies of a Commercially Available Drug Product Under Section 503A — lower price is not sufficient, and a prescription naming only the patient and formulation is not enough.
  4. FDA, FDA Intends to Take Action Against Non-FDA-Approved GLP-1 Drugs (February 6, 2026) — API restrictions, banned marketing claims, and seizure and injunction warning.
  5. FDA, FDA warns 30 telehealth companies against illegal marketing of compounded GLP-1s (March 3, 2026) — March 2026 warning letters.
  6. FDA, FDA’s concerns with unapproved GLP-1 drugs used for weight loss — retatrutide can’t be used in compounding, FDA warnings over retatrutide, and semaglutide salt forms are different active ingredients (content current as of October 1, 2026).
  7. FDA, Warning Letter to Empower Pharmacy, WL 738238 (September 18, 2026) — copies compounded regularly, pretextual differences, and templated or menu-selected significant-difference statements.
  8. FDA letter to the Federation of State Medical Boards on retatrutide (March 31, 2025), as posted by the Arizona Board of Osteopathic Examiners — compounded retatrutide doesn’t qualify under 503A or 503B, copied to NCSBN.
  9. FDA, Warning Letter to Royal Peptides LLC (August 24, 2026) — retatrutide sold as “research use only” treated as an unapproved drug for human use.
  10. Eli Lilly, TRIUMPH-1 results (May 21, 2026) — 28.3 percent average weight loss at 12 mg over 80 weeks.
  11. Eli Lilly, Second-quarter 2026 results (August 5, 2026) — plan to submit retatrutide to the FDA in the first quarter of 2027.
  12. Federal Register, 503B bulks list proposal (May 1, 2026) — proposal to exclude semaglutide, tirzepatide, and liraglutide.
  13. U.S. Court of Appeals for the Fifth Circuit, OFA v. FDA, No. 25-10600 — tirzepatide shortage decision affirmed August 27, 2026.
  14. U.S. Court of Appeals for the Fifth Circuit, OFA v. FDA, No. 25-10758 — semaglutide shortage decision affirmed.
  15. Novo Nordisk, legal action against Hims & Hers (February 9, 2026) — patent suit over compounded semaglutide.
  16. Hendershot Cowart, Novo Nordisk and Eli Lilly sending cease-and-desist letters (February 19, 2026) — secondary report of drugmaker letters to clinics, med spas, and prescribing physicians.
  17. Kentucky Board of Pharmacy, Compounding Semaglutide and Tirzepatide — state board guidance repeating the FDA’s lower-price and documentation language.
  18. Alabama Board of Medical Examiners, Notice on Non-FDA Approved (Research-Grade) Peptides — NPs, PAs, and nurse midwives not authorized to prescribe research-grade peptides, physicians can’t delegate them, and consent forms don’t reduce liability.
  19. South Carolina Board of Medical Examiners, Notice re Peptides — South Carolina peptide notice.
  20. Mississippi State Board of Medical Licensure, Peptide Statement — joint Mississippi board statement on peptides.
  21. Ohio Attorney General, AG Yost Warns Med Spas (April 2025) — letters to 14 med spas over compounded GLP-1 claims.
  22. Connecticut Attorney General, letter to weight loss clinics and spas (May 21, 2025) — letters to practices advertising or prescribing compounded GLP-1s.
  23. Stripe, Restricted Businesses — approval required for telemedicine and online pharmacy businesses.
  24. LegitScript, GLP-1 Sales FAQ — claiming a compounded product is FDA-approved is a violation.
  25. CMS, Medicare GLP-1 Bridge: Information for Providers — $50 monthly copay for eligible Part D enrollees.
Filed underGrowing your practiceCompounded GLP-1sFDA enforcementPrescriber risk

Ready to start your practice?
We’ll handle the forms.

Book a free launch call