Potency variation between compounders is a manufacturing-control question rather than an integrity question, and it is the predictable consequence of preparing a potent peptide by hand at small scale.
Denials come in two flavours and it is worth identifying which you have. A criteria denial means the submission did not evidence something the criteria require, and it is fixed by supplying the evidence. A formulary exclusion means the plan does not cover the drug at any level for any indication, and no amount of clinical documentation changes it — the route there is a formulary exception request or an employer-level appeal.
The internal-then-external appeal path is worth pursuing further than most people do, because the external reviewer is not the plan. Internal appeals are adjudicated by the entity that issued the denial; external review is conducted by an independent organisation against the same criteria, and it overturns a non-trivial fraction of denials.
The statutory basis for the 503A/503B distinction is sections 503A and 503B of the US Federal Food, Drug, and Cosmetic Act as amended by the Drug Quality and Security Act of 2013, and the FDA’s guidance documents on each are the authoritative description of what is permitted.
The caveat is jurisdictional. Almost everything in this area is specific to a country and often to a sub-national jurisdiction, and a confident answer that does not name a jurisdiction should be treated as describing somewhere else.
Ask for the written criteria before you submit. Everything else in the process is easier once you have them.