The government’s cuts to community pharmacy funding have been a telling factor in the reduced number of pharmacies that have been acquired in the last 12 months, according to UHY Hacker Young.
Some 760 pharmacies have been bought in the past year compared with 990 acquired during the previous year despite pharmacies having been “seen as relatively safe acquisition targets due to their stable income from prescription sales,” according to the accountancy network.
It also highlighted that online prescription services such as Pharmacy2U are growing while the “weaker profitability” of Boots and LloydsPharmacy had “temporarily dented their appetite for acquisitions.”
However, UHY Hacker Young said Boots UK, Lloyds Pharmacy and Well led the market “with around 4,800 outlets between them” while “there are another 4,400 small pharmacy businesses with five or fewer outlets.”
UHY Hacker Young also noted that pharmacies had started offering additional services such as non-surgical aesthetic treatments including Botox injections and dermal fillers.
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