Due to popularity of the medications, GLP-1s were in short supply up until recently. Obesity is a common issue among Americans, and these medications provided many with a healthy way to drop the weight. Due to both the demand and the need for the drugs, many people relied on compounded medications to fill the gaps in the supply chain.
Key Takeaways
- Before the FDA’s decision, the need for compounded semaglutide was extremely high.
- Some compounding pharmacies were not using the exact same form of semaglutide as the brand-name drugs, instead using cheaper research grade, food grade, and/or different salt forms.
- Olympia is pivoting to what’s still legally allowed and medically needed.
How is FDA's ban on compounded GLP-1s impacting the industry?
However, as companies like Novo Nordisk and Eli Lilly have adapted to the demand and stabilized the supply chain, FDA is enforcing a ban on compounded semaglutides. While the companies that produce the authentic, non-compounded versions of these medications argue that this is to protect people from unsafe compounded versions, this decision is having a major impact on legitimate compounding pharmacies.
Olympia Pharmaceuticals co-founders Stan Loomis and Naomi Loomis spoke with Pharmaceutical Executive about the impact this decision is having on compounding pharmacies.
Pharmaceutical Executive: How significant was the need for compounded semaglutide prior to the FDA’s decision?
Stan Loomis: Before the FDA’s decision, the need for compounded semaglutide was extremely high. When Ozempic and Wegovy were in short supply, compounded semaglutide became a vital option for people struggling with obesity and type 2 diabetes. We had patients coming in regularly who couldn’t get the brand-name products, or couldn’t afford them, and compounding helped fill that gap.
Naomi Loomis: Absolutely. We saw firsthand how much it helped the community and the patients we service across the United States—especially folks without insurance or with high-deductible plans. Patients were seeing real health benefits—losing weight, improving glucose levels, and in many cases, reducing their need for other medications. It wasn’t just a trendy medication; for many, it was their only realistic access to care.
PE: Is it common for the FDA to ban compounded medications like this?
Stan Loomis: It’s not exactly common, but it does happen—especially when a compounded version of a drug is being used widely while the brand-name version is “back in full supply”. The FDA allows compounding during legitimate shortages, but once those shortages are resolved, they typically pull back that permission.
Naomi Loomis: The FDA also had safety concerns. Other compounding pharmacies were not using the exact same form of semaglutide as the brand-name drugs, instead using cheaper research grade, food grade, and/or different salt forms. This could cause adverse reactions, and that raised a red flag. So while it may feel abrupt, it’s consistent with how the FDA handles drugs when safety.
PE: How is Olympia pivoting because of the ban?
Stan Loomis: Olympia is doing what any smart pharmacy would—pivoting to what’s still legally allowed and medically needed. We are now focusing on liraglutide, which is still in shortage and can be legally compounded. That’s a savvy move because there’s still demand, and it helps fill the vacuum left by semaglutide’s ban.
Naomi Loomis: Olympia’s investing in research and development on compounding other GLP-1s that may go on shortage or potential combination GLP-1s to have more accessible options, which will help keep patients on track with their weight loss and diabetes management.
PE: Are there alternative weight-loss medications compounding pharmacies can turn to instead of semaglutide?
Naomi Loomis: Yes. The main one right now is liraglutide. It’s legal to compound due to ongoing shortages, and it’s been used for weight loss under brand names like Saxenda.
Stan Loomis: Right now, liraglutide is the most viable alternative in the compounding world. Other options include our weightloss management kits, skinny shots, and sermorelin.