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Compliance · State rules

Office-use compounding in Michigan

Narrow — a discretionary state authorization naming one pharmacy and one prescriber
USPeptideRx EditorialLast reviewed:

Michigan names office-use compounding in statute and bars it, with two exits: the preparation complies with FDA’s most recent section 353a guidance, which is patient-specific, or the department authorizes a named pharmacy to compound for a named prescriber on application. The second exit is the real one, and it is narrow in a way anybody can check — the state publishes the list of authorized pharmacies, and when this page was written it had two names on it.

The governing rule

Michigan’s office-use position is set by MCL 333.17748b. The text below is quoted verbatim; everything outside a quote block is our summary of it, and the two are kept visually separate on purpose.

MCL 333.17748b(1) — the bar and its two exits
Except as otherwise provided in this subsection, a pharmacist or pharmacy shall not compound nonsterile or sterile pharmaceuticals for a prescriber or health facility or agency licensed under article 17 to administer to the prescriber’s, facility’s, or agency’s patients without a prescription, unless the pharmaceutical compounded by the pharmacist or pharmacy complies with the most recent guidance on pharmacy compounding of human drug products under 21 USC 353a. Upon application by a pharmacist or compounding pharmacy, the department may authorize the pharmacist or compounding pharmacy to compound nonsterile or sterile pharmaceuticals for a prescriber or health facility or agency licensed under article 17 to administer to the prescriber’s, facility’s, or agency’s patients in limited quantities without a prescription. This subsection does not apply to the compounding of topical nonsterile pharmaceuticals.
MCL 333.17748b(8) — the sentence that closes the exit
A prescriber or health facility or agency that obtains compounded pharmaceuticals under this section shall not redispense or sell the compounded pharmaceutical to a patient, a prescriber, or health facility or agency.

What the rule requires in practice

Each item carries a confidence level. Verbatim rule text is high confidence; a reading of how two provisions interact, or a source that could not be re-verified, is not.

The first exit is close to a null setMedium confidence
It requires compliance with FDA’s most recent guidance on compounding under section 353a — and FDA’s position is that compounding under that section requires a patient-specific prescription. A pharmacy relying on this limb is relying on federal guidance that points the other way, which leaves the departmental authorization as the working pathway.
The published list of authorized pharmaciesHigh confidence
MCL 333.17748b(7) requires the department to publish the authorized pharmacies and to update the list at least quarterly. Read directly from the department’s own page on 30 August 2026, it named two pharmacies in its entirety: Northmark Pharmacy, licence #5301010554, and Stokes Pharmacy, licence #5301012201.This is the most checkable fact on this page — the state publishes it, it takes ten seconds to read, and it is dated here because it moves. Any Michigan office-use supply arrangement outside the pharmacies on that list has to run through an outsourcing facility, or through the topical non-sterile carve-out, or it has no visible statutory basis at all. Check the list before you rely on this page.
The application is per prescriber, not per pharmacyHigh confidence
MCL 333.17748b(1)(a)–(e) requires the pharmacy’s name and licence number; the name of the specific prescriber and an affidavit from that prescriber attesting to the need and that the product is only for patients located in this state or in states immediately adjacent to this state; the pharmaceuticals and the reason for them; the anticipated monthly quantities and the frequency of the need; and the conditions of operation including compounding practices and sterility testing.The geographic limit is unusual and easy to miss: an authorization does not travel to patients outside Michigan and its immediately adjacent states.
There is no numeric quantity capHigh confidence
The statute says "in limited quantities" and nothing defines the phrase — it appears nowhere in the Board’s general rules, and neither does "anticipatory". What substitutes is the applicant’s own declared monthly quantity, which the department approves or does not, plus the geographic limit from the prescriber’s affidavit.Any percentage or unit ceiling published as Michigan’s office-use cap is invented. The real limit is whatever the department approved for that particular pharmacy and prescriber, and it is not public. Michigan does carry a 5% dosage-unit threshold at MCL 333.17748f, but that one forces a pharmacy to hold an additional wholesale distributor or manufacturer licence — it caps nothing about office stock.
Office stock may be administered and nothing elseHigh confidence
Subsection (8) forbids a prescriber or facility that obtains compounded pharmaceuticals under this section from redispensing or selling them to a patient, to another prescriber, or to another facility. It is the sharpest edge in Michigan law for this vertical: the stock may be administered in the practice, and it may not be handed to a patient, sold, or transferred.
No 503A office-use label legendMedium confidence
Michigan’s label rule governs containers in which prescription medication is dispensed and requires a patient name, so it does not reach non-patient-specific stock. A legend does exist at R 338.533(6)(d)(iii) — "This is a compounded drug. For office use only" or "Not for resale" — but the rule says "or similar statement", and its opening limits it to a pharmacy registered as an outsourcing facility or compounding under section 503B.Two things a marketer gets wrong here: the legend belongs to the outsourcing-facility route rather than the pharmacy one, and even there it is a safe-harbour example rather than a mandatory form of words.
Records and reportingHigh confidence
MCL 333.17748b(2)(a) requires complete and accurate records on a monthly basis of requests from, and pharmaceuticals compounded for, each prescriber. Sterile records carry eight mandatory elements including the manufacturer and lot number of each ingredient and which pharmacist approved the preparation, retained not less than five years. An adverse event is reportable within 10 calendar days; an out-of-state complaint, federal investigation or accreditation investigation within 30 days. The department may inspect unannounced, must revoke on a confirmed deviation, and may not authorize a pharmacy that is under investigation or in disciplinary status.
Out-of-state pharmacies get no escape hatchHigh confidence
MCL 333.17748(1) triggers on doing business in the state — "to do business in this state, a pharmacy, manufacturer, wholesale distributor, or wholesale distributor-broker, whether or not located in this state, must be licensed under this part." It does not trigger on shipping pursuant to a prescription, which is the wording that lets non-patient-specific stock slip past the licensure hook in several other states. Michigan also requires a pharmacist licensed in this state as pharmacist in charge.The "qualified pharmacy" carve-out does not rescue office use either: it requires that the delivery or trade be intended to fill a prescription for an identified patient.
Last changeHigh confidence
The statute is untouched since it was added in 2014. The Board’s general rules were refiled effective 12 March 2026, and three changes bear on this page: a new provision for board-approved third-party inspection entities, an amended renewal-inspection window of 18 months, and updated adoption of the compounding chapters of the USP. A 2024 act rewrote the Part 177 definitions of dispense, prescriber, prescription and wholesale distributor effective 2 April 2025.Watch the rulemaking opened in 2026 that reopens the entire set of general rules. Its declared scope includes inspections and manufacturer licences, so the outsourcing-facility inspection framework is back in play. There is no draft text and no hearing notice yet, and no pending bill amends the office-use statute itself.

Michigan at a glance

Michigan office-use compounding summary, reviewed 2026-08-30
Human office useNarrow — only by state authorization
Sterile preparationsNo split; only topical non-sterile is carved out
Quantity capNo number — whatever the department approved
Mandatory label legendNone for the pharmacy route
Board reportingAdverse event 10 days; other actions 30 days
Last changeRules March 2026; statute 2014
Governing ruleMCL 333.17748b

Receiving 503B office stock in Michigan

Michigan has no outsourcing-facility licence category. It reaches those facilities by cross-reference and makes them hold a full Michigan pharmacy licence — which brings a Michigan-licensed pharmacist in charge with it, and that is the requirement that catches out-of-state facilities by surprise.

Everything above this heading answers the supply question: may a state-licensed 503A pharmacy ship non-patient-specific stock? This section answers the other half. Registration with FDA under section 503B is a federal exemption from federal law and preempts no state licensing scheme, so it is never the whole answer on its own — a state credential is the norm rather than the exception, it is not always issued by the board of pharmacy, and in some states the category you would search for does not exist. What Michigan asks for is set out below, including where we could not establish it.

What the 503B must hold to ship inHigh confidence
A Michigan pharmacy licence. MCL 333.17748(1) says it in one sentence: "To do business in this state, an outsourcing facility must be licensed as a pharmacy under this part." Registration with FDA is a precondition rather than a substitute — the rules require an out-of-state facility to be inspected and registered by FDA before it may apply for a Michigan licence, and renewal turns on a current good manufacturing practice inspection report completed no more than 18 months before the application. A pharmacist licensed in Michigan must serve as pharmacist in charge.Michigan never writes the section number: the literal string does not appear in this part of the code at all, and the facility is reached purely through a definition that adopts the federal one. Searching Michigan law for the federal label returns nothing, which is a confident false negative. Above a 5% dosage-unit threshold a second licence — wholesale distributor or manufacturer — is forced on top.
Does your practice need a permit?High confidence
No. There is no clinic permit or terminal-distributor analogue in Michigan law — those phrases appear nowhere in the public health code. What Michigan grants instead is a pharmacy licence for each separate place of practice and a drug control licence for the place of practice of a dispensing prescriber, and the second only matters if the practice dispenses.But note who may hold a credential. Michigan defines a prescriber as a licensed individual; the drug control licence carries the name of the dispensing prescriber and is automatically void if that person’s health professional licence is suspended or revoked; and the provision that does contemplate entity licensees is limited to pharmacy, manufacturer and wholesale-distributor licences, with the drug control licence omitted. Practically, the drugs land on a named individual practitioner’s credential at a qualifying address. Whether the invoice or the tax identification number may be the entity’s is simply unaddressed.
Administer vs dispenseMedium confidence
For office stock the question is already settled by MCL 333.17748b(8), which bars redispensing or selling it at all — administration is the only permitted use, so the dispensing apparatus never attaches to it. For the rest of a practice’s inventory, a prescriber who wishes to dispense must obtain a drug control licence for each location where storage and dispensing occur; at a site with no on-site pharmacy, delegation runs only to a registered nurse, is capped at a 72-hour supply, and the dispensing charge must appear as a separate line item on the bill. In-office administration is not reportable to the state monitoring system, which defines dispensing to exclude administering a controlled substance directly to a patient.One question underneath this is genuinely unconstrued: whether drawing a dose from a multi-dose vial for immediate in-office administration is "dispensing" in Michigan. No case, opinion, board ruling or guidance addresses it, and it is the biggest open question for an office-stock model here. Do not build a page — or a protocol — around an answer.
Scheduled (controlled) stockHigh confidence
Michigan requires its own controlled-substance licence, and it is required twice over: MCL 333.7303(1) for anyone who manufactures, distributes, prescribes or dispenses in the state, MCL 333.7303(6) for each principal place of business or professional practice, and R 338.3132(4) for each practitioner licence held. The department’s own guidance states the ordering plainly: obtain the Michigan controlled substance licence before the DEA registration. Records run five years in three separate buckets, the annual inventory is separate for each licensed location, and the administration log — patient, drug and strength, quantity, date, and who administered it — is kept separately from the patient chart.A live conflict worth taking to counsel: the rule requires a separate licence for each place where the applicant stores controlled substances, while the department’s published licensing guide drops the word "stores" and tells practitioners one licence covers all their prescribing locations. The rule is the law and the guide is not, so a multi-site practice holding controlled office stock at satellite sites is exposed.

How to check a facility’s credential before you order is set out in how to place an office-use order.

The federal layer still applies

Whatever Michigan law allows, federal law applies on top of it and is not satisfied by state permission. 21 U.S.C. § 353a conditions the federal compounding exemptions on a drug being compounded for an identified individual patient on receipt of a valid prescription order. A state rule cannot create a federal safe harbour, and several state rules say so in their own text. The separate federal pathway for non-patient-specific office stock is the 503B outsourcing facility — the differences are set out in 503A vs 503B.

For how Michigan compares with the other states reviewed, see the state-by-state comparison.

What this page does not establish

  • Whether MCL 333.17748b gates an outsourcing facility or only a pharmacy compounding under section 503A is genuinely unresolved. A Michigan-licensed outsourcing facility is "licensed as a pharmacy", so the text reaches it — yet the rules elsewhere contemplate an outsourcing facility applying an office-use legend, which would be incoherent if the statute barred the activity. Our reading is that it is the pharmacy-route gateway, and that reading should be put to the department in writing before anyone builds on it.
  • Whether drawing a dose from a multi-dose vial for immediate in-office administration is "dispensing" under Michigan law is unconstrued by any case, attorney-general opinion, board ruling or guidance. For a practice injecting compounded preparations that is the question the whole analysis turns on, and this page cannot answer it either way.
  • Whether administering only — without dispensing anything — triggers a drug control licence is not stated either way: no text says it is exempt and none says it is required. Our reading is that it does not, and it is a reading rather than an answer.
  • Whether the purchase invoice or the tax identification number may be the practice entity’s while the drugs are consigned to a named individual is unaddressed by Michigan law. We found no authority either way.
  • The authorized-pharmacy list is a live document that the department updates at least quarterly. The names and licence numbers on this page were read on the date shown and are certain to go stale; treat them as a demonstration that the list is short, and check the list itself.
  • We searched no attorney-general opinions, declaratory rulings, board minutes, enforcement actions or case law for this state.

Sources

Primary sources, fetched directly from the issuing body. No secondary summaries.

  1. [1]MCL 333.17748b — Compounding for a prescriber to administer without a prescription
  2. [2]MCL 333.17748 — Licensure required to do business in this state
  3. [3]Michigan LARA — the published list of pharmacies authorized under section 17748b
  4. [4]21 U.S.C. § 353a — Pharmacy compounding (Cornell LII)