Pharmacy update: A year in review

Published: Monday 17 January 2022

Looking back on 2021, the pharmacy sector has been extremely busy, with the impact of the pandemic increasing the number of patients accessing pharmacies for general medical advice, medication, vaccines and testing kits.

The cash flow for pharmacies also improved in this period through Government grants, an increase in Category M prices and advanced cash flow funding, helping owners pay for additional staff and costs to deal with the increased demand, including staff sickness.

On 28 June 2021 it was announced that the advanced cash flow funding would be repaid in full over six months from October 2021 to March 2022. However, pharmacies were able to submit a claim for their costs incurred due to COVID-19, which will offset the repayments.

The large corporates had been rationalising their portfolios either by selling or closing branches. With the pandemic’s change to society upping the demand for medication being delivered door-to-door, this has consequently led to an increase in centralised dispensing.

The market continued to be active over the last 12 months with both corporate and independent acquirers in the market. The number of pharmacies on the market reduced at the start of 2021, which has led to an increase in the price of pharmacies. The availability of pharmacy funding from banks during this period has also helped to keep the market active.

In 2021, we have advised on the sale and purchase of pharmacies in excess of £97 million, contributing to the firm's overall Corporate Finance deal value of more than £1 billion – the best result to have been achieved in Hazlewoods 100-year history. 

Richard Medes, Hazlewoods Director, said: "It has been a demanding time for the pharmacy sector over the last 12 months, but pharmacies have risen to these challenges and shown that they can deliver the services required by the Government.

"Hopefully this will lead to increased utilisation of the pharmacy sector going forward to deliver the requirements of patients."

If you are interested in buying or selling a pharmacy, or would like further advice on raising finance for expansion, please get in touch with Richard Medes at richard.medes@hazlewoods.co.uk or call 01242 680000.

Content image: /uploads/team/unknown.jpg Richard Pontin-Medes
Richard Pontin-Medes
Partner, Pharmacy
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