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Pharmacy prices rise 12% despite funding cuts

Christie & Co anticipates a further raft of sales in 2017

Activity in the pharmacy market continued “almost unaffected” by the funding cuts last year, property adviser Christie & Co has revealed.

Average pharmacy prices rose by 12% in 2016, despite the funding cuts and other “seismic geopolitical events”, according to Christie & Co's Business Outlook 2017 report.

The property advisor reported “an increased appetite” from existing independent and multiple businesses who see “potential opportunity to acquire further pharmacies".

Tony Evans, head of pharmacy at Christie & Co, said the outlook for pharmacies is "not bad at all”, as the sector continues to be a “safe haven for private investors and family money”.

There is also evidence that the banks are “keen to lend”, he added.

While the cuts have "understandably caused concern within the sector", there were on average eight offers on each pharmacy sold in 2016. Mr Evans anticipates a “further raft of sales” in 2017, he said.

“Contractors will have to implement measures to compensate for losses to funding, but the outlook for 2017 looks positive,” he added.

According to Christie's report, pharmacy prices increased by 13.5% in 2014 and 10.8% in 2015.

Christie & Co also highlighted that 84% of applicants registering were new entrants to the market – a 5% rise on the previous year. It predicted a “similar spike” in 2017, as pharmacists “react to the employment uncertainty as a result of the cuts”.

Last year, Mr Evans told C+D that more locums were looking to buy their own pharmacies as businesses reduce locum hours in the wake of the cuts.

Do you have a pharmacy to sell? – Go to the C+D Marketplace today!

8 Comments
Question: 
Have you bought or sold a pharmacy since the cuts were announced?

Valentine Trodd, Community pharmacist

Oh dear, somebody's telling porkies...

Anybody heard of any pharmacies that have closed down yet? I didn't think so.

N O, Pharmaceutical Adviser

I'm sure people must have noticed "Average pharmacy". Now the word AVERAGE is always in conflict. 

Well, Christie & co have to make this up to get more people to think their money is safe by investing in a Pharmacy (still after the funding cuts) or else the company (C&co) will go bust !!!

Even if they are right, the prices could have been more than the price increase quoted by them, if there were no Funding Cuts.

Shaun Steren, Pharmaceutical Adviser

Yes, there are two sides to this debate, both obviously incredibly biased. Hence why people repeatedly call out for evidence and reasoned explanation. All we ever receive is anecdote, smoke and mirrors and ridiculously biased exaggeration. What are people are trying to hide with these campaigns of misinformation and propaganda? 

P M, Community pharmacist

cuts haven't hit yet ... 

Jupo Patel, Production & Technical

Yes, I'm sure when they do thousands of pharmacies will shut......

Shaun Steren, Pharmaceutical Adviser

So people are too stupid to project the value changing effect of known changes to funding. 

Shaun Steren, Pharmaceutical Adviser

Oh dear, not quite supporting of what certain posters on here make claim for. 

Jupo Patel, Production & Technical

Interesting.

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