2020 saw increase in sales of pharmacies

Latest

2020 saw increase in sales of pharmacies

In Latest

More pharmacies were bought and sold in 2020 than in the previous year, in part due to the sector's high public profile during the Covid-19 pandemic, a property company has said. 

Specialist business property adviser Christie & Co says in its latest business outlook report that 2020 saw a year-on-year 14 per cent rise in completions and a 9.5 per cent rise in pharmacy sales agreed. This spike in sales activity was partly driven by interest from parties currently outside the sector looking to invest for the first time, including private equity and other groups with access to private capital.

The performance comes in spite of findings from a sentiment survey among a pool of predominantly independent pharmacy operators which saw a third saying their business was either significantly or severely impacted by Covid-19.

In particular, the market in Scotland remained strong on the back of a more consistent approach to pharmacy funding. Christie & Co also note the return of competitive bidding “which has resulted in some strong prices being achieved, albeit on a case by case basis”.

Head of pharmacy Tony Evans said: “We saw a lot of first time buyers, a lot of asset sales with companies churning their marginal stock, but we also saw existing operators, notably small independents thinking there were opportunities out there. We have also seen more of a new kind of buyer, the private equity, family offices etc looking at the market, looking at small groups to make an investment for the first time. And the perception of pharmacy is different to what it was this time last year.”

'Neutral price movement'

The report reveals there was "neutral price movement" for the sector in 2020, following a 3.6 per cent decline in 2019. “Valuations of pharmacies have been stable with little effect seen on overall value. Coupled with continued appetite to lend from the banking community, the sector has been resilient,” the company said. 

The company anticipates sales activity in 2021 will follow the progressive relaxation of the currently imposed lockdown measures, with further consolidation of corporate pharmacy estates likely as they continue to divest marginal assets.

“Rather than sectors which have been on hold for a year, pharmacy has kept on going,” the report says. Mr Evans added: “We’re in a different place compared to March last year, when we were looking into the abyss. In our third lockdown people are used to queuing, there’s the delivery model, some are using automation. Generally pharmacy is in a good place, but better equipped as to how they are going to deliver the service.

“We are still seeing activity, offers being made and deals being agreed. Working remotely puts pressure on the speed deals can be agreed, but there’s a lot of debt funding out there, and we are seeing plenty of funded applicants to buy pharmacies.”  

Record my learning outcomes

Latest

Inspiring stories related to health, fitness and the pursuit of wellbeing

Share:

More like this

bookmark_icon_off
Latest

PHE 'must revise PPE guidance for dispensary staff'

The Pharmacists’ Defence Association has called on Public Health England to revise its position on PPE for pharmacy dispensary staff.

2 Min Article

bookmark_icon_off
Latest

IBS sufferers worried about return to workplace

People with irritable bowel syndrome are anxious about lockdown easing and the prospect of going back to the workplace contributing to their symptoms.

1 Min Article

bookmark_icon_off
Latest

Involve more pharmacies in booster programme says CPNI

Community pharmacies in Northern Ireland have delivered more than 100,000 Covid vaccines since the end of March.

1 Min Article

bookmark_icon_off
Latest

Tackling metabolic syndrome in pharmacy

Pharmacists can make a big difference to people’s health through targeted monitoring and nutritional and lifestyle advice.

3 Min Article

bookmark_icon_off
Latest

GPhC holding internal review on controversial exam

GPhC chief Duncan Rudkin says an internal review of what went wrong leading up to the March exam is under way.

2 Min Article

bookmark_icon_off
Latest

IBS sufferers worried about return to workplace

People with irritable bowel syndrome are anxious about lockdown easing and the prospect of going back to the workplace contributing to their symptoms.

1 Min Article

Recommended Learning

bookmark_icon_off
Sponsored education

Understanding abdominal pain, cramps and IBS

This short video explains the symptoms of irritable bowel syndrome (IBS) and how it differs from abdominal cramps to help you recommend a suitable product for your customer’s needs.

3 Min Module

bookmark_icon_off
Sponsored education

Supporting customers to sleep better

Explore the rotating pack shot to find out more about Nytol Liquid Caramel Flavour, a clinically-proven alternative to sleeping tablets, and understand how you can support customers to sleep better.

5 Min Module

bookmark_icon_off
Bayer Business Programme

Make it Count: Team Member version

Find out new insights into the consumers of today and explore how, by taking a customer-first approach, you can add value and help build a loyal customer base.

15 Min Module

Sponsored education

Dry eye consultations

Work through a customer consultation to determine the possible cause of stinging, gritty eyes and recommend an effective treatment to help ease these symptoms.

15 Min Module

bookmark_icon_off
Sponsored education

Understanding constipation treatments

Discover the key benefits of different types of laxatives, and the right questions to ask customers to ensure you know which to recommend

10 Min Module

bookmark_icon_off
Sponsored education

Oral rehydration: a pharmacy guide

Understand the important role oral rehydration products play in helping prevent dehydration after illness

5 Min Module