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Compounding is the combining, or mixing together, of two or more ingredients (of which at least one is a drug or pharmacologically active component) to create a final product in an appropriate form for dosing. It can involve raw materials or the alteration of the form and strength of commercially available products. Compounding also includes the process of reformulating a drug for a for a new therapeutic/medical use.
Compounding does not include mixing, reconstituting or any other manipulation that is performed in accordance with the directions on an approved drug’s label. (Source)