The preparation, mixing, assembling, packaging, or labeling of a drug or device as the result of a practioner, patient, pharmacist relationship in the course of professional practice, or for the purpose of or as an incident to, research, teaching, or chemical analysis and not for sale or dispensing. Compounding also includes the preparation of drugs or devices in anticipation of prescription drug orders based on routine, regularly observed prescribing patterns. A customized medication prepared by a pharmacist according to a doctor's specifications to meet an individual patient need. Pharmacies make medications from scratch using raw chemicals, powders and devices.

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