NotebookLM: Federal Regulation of Drugs II

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Last updated 7:00 AM on 9/27/26
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1. Requirements for Pharmacy Compounding According to the FDCA

Retail Pharmacy Exemption (§ 510(g)): Pharmacies are exempt from registering as manufacturers if they do not manufacture or compound drugs for sale outside the regular course of their business of dispensing at retail[1].


General Compounding Standards:

  • Compounded products must comply with USP standards (such as USP <795> for nonsterile, USP <797> for sterile, and USP <800> for hazardous drugs)[2][3].

  • Compounding bulk substances must be manufactured by FDA-registered entities[2].

  • Products must not be a copy of a commercially available product, made from drugs withdrawn for safety/efficacy, or made from drugs listed as difficult to compound[2].


Traditional Compounding (§ 503A):

  • Limited to extemporaneous preparation of reasonable quantities pursuant to an individual prescription (or limited compounding in anticipation of a prescription)[4].

  • Must be prepared by a licensed pharmacist or physician[4].

  • Interstate distribution is capped at 5% of total prescriptions dispensed unless a state-FDA agreement exists[4][5].

  • Exempt from: Current Good Manufacturing Practice (cGMP) requirements, premarket approval, and "adequate directions for use" labeling[5].


Outsourcing Facilities (§ 503B):

  • Applies to facilities (not required to be licensed pharmacies) registered with the FDA to compound sterile products under direct supervision of a licensed pharmacist[4][6].

  • May compound with or without patient-specific prescriptions[4].

  • Exempt from: Premarket approval and "adequate directions for use" labeling[5].

  • Must comply with: cGMP requirements, FDA inspections, FDCA labeling rules, and adverse event reporting[5][6]. Resale or transfer by third parties (e.g., wholesalers selling to pharmacies) is strictly prohibited[5][6].


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2. Definition of "Orphan Drug"

  • Under the Orphan Drug Act (1983), an orphan drug is defined as a drug intended to treat a rare disease or condition affecting fewer than 200,000 people in the United States[7].

  • Because small patient populations make R&D and clinical trials cost-prohibitive, the Act provides tax incentives and exclusive licensing rights to encourage manufacturers to develop these treatments[7][8].


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3. Poison Prevention Packaging Act (PPPA) in Pharmacy Practice & Packaging

  • Intent & Scope: Administered by the Consumer Product Safety Commission (CPSC) to protect children under 5 years old from accidental poisonings from household substances, including OTC and prescription drugs[9].

  • Packaging Standard: Containers must be child-resistant—defined as 80% of children under 5 being unable to open it, while 90% of adults can open it[9].

  • Container Reuse: Reusing prescription containers is prohibited unless made of glass or threaded plastic, and even then, a new safety closure must be used[9].

  • Exemptions to PPPA:

    • Prescriber request (applies to individual prescriptions)[10].

    • Patient request (patients may issue a blanket opt-out in writing for all prescription drugs)[10].

    • Institutionalized patients (where medications are administered by employees)[10].

    • Specific drug exemptions: E.g., sublingual nitroglycerin, or sublingual and chewable isosorbide dinitrate[10].

    • OTC Packaging: Manufacturers may market one size in noncompliant packaging if clearly labeled "This package for households w/o young children"[10].


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