Pharmacy profitability has risen over the past 12 months, with three-quarters of pharmacy operators planning to buy or sell in the next few years, Christie & Co has revealed.
In its annual Pharmacy Market Review for 2026, published today, Christie said the average price of pharmacies sold in 2025 grew by 4.1% - bouncing back from a dip of 6.3% in 2024.
Read more: ‘In a good place’: Christie backs strong pharmacy market
The property brokers also highlighted a 0.7% increase in the average gross margin compared to the previous year, taking the figure to 34.6%.
Earnings before interest, tax, depreciation and amortisation (EBITDA) margins also rose to 11.5% in the first half of this year, which Christie attributed to “the significant uplift” in funding agreed under the 2026/27 community pharmacy contract.
Read more: Pharma’s Market: First-time buys and the strength of the Midlands
The report also noted a “modest increase” in the number of pharmacies operating across the UK, with the additional 47 joining the register in the last year marking “the first increase in over five years”.
The number of distance selling pharmacies (DSPs) rose by 8.8% compared to the previous year, with Christie noting that a “high number of applications” were made before last June, when legislation was passed to block new DSP contracts.
DSPs dispensed the highest number of items on average, at 10,980 per month, followed by 100-hour pharmacies dispensing an average of 10,647 items and 40-hour pharmacies averaging at 9,124.
“Entrepreneurial first-time buyers”
Christie said Boots has maintained its position as the largest pharmacy operator in the UK, owning “almost as many pharmacies as the next five largest operators combined” at 1,734 branches.
But the report found that market activity “continues to be driven primarily by entrepreneurial first-time buyers and agile smaller operators”.
It said first-time buyers accounted for 29% of pharmacies sold, while small existing operators made up 33%.
The proportion of share sales compared to asset sales also increased, demonstrating “increased demand for established businesses where buyers can benefit from operational continuity and existing contractual arrangements”.
Read more: Buying + Selling: DSP sale, high demand, and a quickfire sale
The report highlighted a “significant” increase in pharmacy valuation activity in 2025, with Christie & Co completing 68% more valuations than the previous year.
The property brokers also noted a change in valuation instructions, with transaction-related valuations jumping from 37 in 2024 to 172 in 2025.
“This reflects the higher levels of acquisition activity being seen across the pharmacy market, as operators continue to pursue growth and consolidation opportunities,” it said.
Read more: Sale rescues 150-year-old pharmacy from administration
A survey by Christie found that for 60% of pharmacy professionals, Pharmacy First was their strongest area for growth in 2025, closely followed by weight loss medication at 52% - a shift from last year’s results, when weight loss services drove growth.
This year’s report said Pharmacy First had “strengthened financial foundations, enhanced clinical credibility, increased patient demand and repositioned pharmacies as indispensable providers of accessible NHS care”, in turn “increasing patient footfall” and “driving engagement” with pharmacy services.
Over half have a “negative outlook”
But while community pharmacy is growing in size and profitability, 52% of survey respondents reported having a “negative outlook” on the sector for 2026/27.
Three quarters of people said they had “limited confidence for negotiations for a suitable increase in funding for pharmacy by 2026/27”, while 91% identified rising staff costs as a “major business challenge”.
Read more: ‘Pragmatic’: Allied Pharmacies sells six ex-Jhoots branches
Some 88% also cited drug supply chain issues as “one of the most significant challenges facing pharmacy operators” today, and 56% said staff recruitment remains “a significant challenge”.
Despite the challenges faced by pharmacy owners, the report found that 75% of respondents “indicated an interest in either buying or selling pharmacies”, with first-time buyers showing a “particularly strong interest” in the sector.
Stability, autonomy and growth
Christie & Co head of pharmacy Jonathan Board said that 30% of the broker’s completed deals are “going to new entrants to the market”.
He exclusively told C+D that “while market conditions remain challenging, many aspiring owners recognise that independent pharmacy can still offer long-term stability, professional autonomy and significant opportunities for growth”.
“Another notable trend is the increasing number of first-time buyers receiving support from experienced pharmacy operators from their professional networks,” he added.
Read more: ‘Every little helps’: CPW suspends levy payments for contractors
“This backing ranges from formal investment partnerships to ongoing informal mentorship and practical guidance, both during the acquisition process and after completion.”
It comes after Christie described the pharmacy market as “very good and strong”at this year’s PharmacyForum in Spain.
The property brokers said the sector’s proactive approach to adding new services has helped to sustain buyer appetite for pharmacies.
