A drug preparation is made when a dosage or form (e.g. syrup, capsule) is not available, when the taste or appearance of a drug is not accepted by a patient, when there is has an allergy to one of the ingredients contained in a commercial medication, or when a product is not yet marketed in Canada or is temporarily unavailable in Canada. A non-sterile compounded preparation is packaged in a clean and controlled environment for topical, oral, vaginal or rectal use.

A drug preparation is made for parenteral administration via subcutaneous, intramuscular, intravenous, or ophthalmic administration. Medications such as antibiotics, painkillers, anticoagulants, and hazardous medications are examples of sterile preparations. Administration is most often done via pump, infusers, or syringes. A sterile preparation must be made under strict aseptic conditions for parenteral or ophthalmic use.

A medication is prepared when a dosage or form (e.g. syrup, capsule) is not available, is not yet marketed in Canada, or is temporarily unavailable in Canada. These products can be associated with RAMQ pseudo-DINs.