Avicenna Membership Services – “the UK’s largest independent pharmacy support group” – has “split from its retail pharmacy operation” following its acquisition by a Dutch buying group, it last week (May 13) revealed.
Speaking to delegates at the annual Sigma conference, former Avicenna sales and purchasing director Brij Valla announced that he has become the offshoot’s managing director, while Salim Jetha is continuing as chair.
The new company, which has been acquired by “leading Dutch buying group Nafinco”, will hold “a full procurement mandate on behalf of members”, the company said.
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“This includes responsibility for negotiating terms with wholesalers, managing brand deal strategies, securing direct deals with manufacturers and overseeing all aspects of stock acquisition”, it added.
“To help that network become more agile and competitive, Avicenna Membership Services is investing heavily in its digital infrastructure and tools,” Avicenna also revealed.
The new company will “shortly” launch a new digital services platform offering booking and delivery support, it explained.
“Next-generation buying group”
“This is a pivotal moment for independent pharmacy,” Valla told delegates.
“With Nafinco’s backing and our increased scale we’re building a next-generation buying group,” he added.
“We now have a sharper focus, a stronger mandate and the resources to do more for our members,” Jetha said.
“This change is about unlocking growth for every independent pharmacy in our network,” he added.
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Speaking to C+D last January, Valla said that the Avicenna Group – which at the time covered both the retail and buying group – was “really starting to feel the squeeze”.
At the time, Avicenna’s community pharmacy arm posted some ostensibly positive results, including a 46% increase in sales – up from £115 million the previous year to £168m - and a rise in operational staff numbers by around 31% from a monthly average of 1,021 in 2022 to 1,337 in 2023.
But the report revealed that these were due to “hive-ups” over the past two years, as other parts of the greater Avicenna company were brought into its retail fold.
