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Healthcare Defense Glossary

DQSA (Drug Quality and Security Act)

The DQSA (Drug Quality and Security Act of 2013) is the federal statute that restructured the legal framework for pharmacy compounding in the United States. The DQSA's Title I, the Compounding Quality Act, codified section 503A (state-licensed pharmacy compounding under patient-specific prescriptions) and added section 503B (FDA-registered outsourcing facilities authorized for office-use compounding under cGMP requirements) to the Federal Food, Drug, and Cosmetic Act. The DQSA's Title II, the Drug Supply Chain Security Act (DSCSA), addresses pharmaceutical supply chain traceability and serialization.

How the DQSA works

The Compounding Quality Act (DQSA Title I) responded to the 2012 New England Compounding Center fungal meningitis outbreak by creating a two-track federal compounding framework. Section 503A pharmacies operate under state board licensure with limited FDA oversight, compounding under patient-specific prescriptions and using bulk drug substances on the 503A bulks list or appearing on FDA's drug shortage list. Section 503B outsourcing facilities register with FDA, pay annual user fees, comply with cGMP requirements, and may compound for office use without patient-specific prescriptions.

The Drug Supply Chain Security Act (DQSA Title II) created a unit-level traceability requirement for prescription drug products across the supply chain, with phased implementation requirements running from 2015 through 2024 covering serialization, lot-level traceability, and unit-level interoperability. The DSCSA reaches manufacturers, repackagers, wholesale distributors, and pharmacies. Enforcement runs through FDA inspection and, for violations of significant magnitude, civil and criminal action under the Federal Food, Drug, and Cosmetic Act.

When the DQSA applies

The DQSA applies to every U.S. compounding pharmacy, every U.S. drug manufacturer, every wholesale distributor, and (through downstream obligations) every retail pharmacy and physician dispenser. The compounding-side framework (sections 503A and 503B) is the active enforcement focus for the FDA Inspectional and Office of Compliance work. The DSCSA-side framework has been the focus of phased compliance investment by industry participants and is now in the steady-state operational enforcement phase.

The entity's exposure under the DQSA

Compounding pathway violations support FDA Form 483, Warning Letter, consent decree, injunction, criminal referral under the Park doctrine, import alert, and recall. DSCSA violations support the same enforcement framework plus civil monetary penalties under 21 USC 333(b)(2). State board parallel exposure runs through state pharmacy practice acts that adopt or supplement the DQSA framework. The defense framework focuses on the regulatory pathway determination (503A vs 503B), the compliance posture documentation, and the corrective action engagement with FDA when inspectional observations issue.

Related terms

See also