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Community Pharmacy Sector

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  • Community Pharmacy Sector

    Its been a while since I've posted anything but I thought it would be interesting to see the market valuation for community pharmacy. It seems that the market price has crashed for pharmacies. Some of these pharmacies are worth significantly less than what they would have exchanged for a few years back.

    The most worrying thing is that these valuations were pre COVID-19 I wonder what will happen to the market now? Will some of these contracts be just returned back to LHB because no pharmacist is willing to buy it?

    A couple of things to take into consideration:
    1. I think the COVID-19 will accelerate the decline retail commerce as public move to e-commerce.
    2. The UK economy faces significant set back therefore any hope of uplifts is just wishful thinking.
    3. Pound is unlikely to appreciate therefore the cost of operating a pharmacy is likely to be higher and if the NHS is unable to increase income it will lead to lower profit
    I wonder how others see this situation?

  • #2
    Where did you get your figures for mkt valuations?

    Having asked that; overall I'm not surprised. I sold my business 20+ years ago and was glad to see the back of it.

    Since when trading conditions have grown steadily worse.

    If you want a profession related to health; do Medicine.At least, eventually,you should end up with a middle class income and status. But don't expect an easy ride


    • #3
      Here are my two tablets worth of opinion.
      The move to online has a couple of problems.
      During the lockdown most have been at home or at least someone in a family has.
      This means someone is there to take delivery of medication.

      Are people more forgiving of online delays than the slightest problem at their local pharmacy?

      As for not doing pharmacy, I don't think we will convince anyone not to take up the profession.
      If you look at "student room" there are people who have their heart and mind set on it and they will leap to defend their choice.
      They point to becoming an independent prescriber and the clinical services.
      47 BC : Julius Cesar : Veni Vidi Vici : I came, I saw I conquered.
      2018 AD : Modern Man : I shopped, I clicked, I collected.
      How times change.

      If you find you have read something that has upset or offended you an anyway please unread it at once.


      • #4
        The COVID 19 situation has forced people to nominate like never before. People have been staying at home and expecting their medicines delivered. In some areas it looks like surgeries and repeat ordering services (PODS) have been signposting online services. In some weeks we have had drops in nominations where pharmacies are attached to surgeries and centralised PODS are being used. As it says in the original post this plays into the hands of the online pharmacies. I think they will now begin lobbying for payments for delivery as the pandemic has shown that it is an essential service. The scripts that we are losing are likely low item numbers (asthma, hayfever, bloodpressure). The kind of items that people will pick up with their shopping or when they collect the prescription from the surgery. This will have an effect on the margins of the onlines as the delivery cost is the same for one item or four. It seems that Now Pharmacy are no longer providing prescription services. They had 15,000 nominations but their monthly script items was 17,000. Usually we would expect items to be about double nominations or more while they have less than one item per nomination each month. This indicates lots of single items and or patients who are not on regular medication.
        You can also see from nomination data that the larger multiples have been pushing nominations to their centralised dispensing hubs.
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        • #5
          Yes this happened to me. I am classified as extremely vulnable. The local LLoyds said it was ceasing deliveries and scripts would be transferred to their subsidiary Echo based in West london. A few hiccups at first, but otherwise OK.