Key Summary
- The Welsh pharmacy contract places comparatively greater emphasis on consultative, service-led activity.
- Pharmacies dispensing more than 10,000 items per month remain among the most attractive assets in the market.
- Pharmacies in England and Wales are now offering pharmacists a greater role in delivering frontline healthcare.
While England remains the largest market for pharmacy entrepreneurs seeking their next acquisition, Wales is also attracting interest because it is more service-oriented, according to Richard Thomas, Senior Business Agent – Pharmacy, Christie & Co.
In his report, Thomas said that while the Welsh pharmacy market is smaller, healthcare policy and the structure of the pharmacy contract have evolved in slightly different ways. "For buyers planning acquisitions over the next decade, understanding these differences is becoming increasingly important."
Thomas said in the UK, the recent Pharmacy First and the NHS’s intention to expand the role of pharmacists in managing minor illnesses community pharmacy is gradually evolving from a model focused almost exclusively on dispensing toward one that is more clinical and patient-facing.
However, he said the English contract still relies heavily on dispensing activity as the primary source of income for most pharmacies.
In Wales, pharmacies have already moved to embed clinical activity more firmly within the pharmacy contract.
"Over time, the Welsh system has increasingly encouraged Pharmacists to deliver consultations, medicines optimisation, and minor ailment services alongside traditional dispensing. This has subtly reshaped both the professional role of the Pharmacist and the income mix within pharmacies," he said.
In England's pharmacies, income continues to be strongly linked to prescription volume and retained margin on medicines.
"Pharmacies dispensing more than 10,000 items per month remain among the most attractive assets in the market and typically generate strong demand when they come to market," he said.
The Welsh pharmacy contract places comparatively greater emphasis on consultative, service-led activity.
"Consultation-based services, including minor ailment treatment and medication reviews, provide remuneration linked to professional input rather than purely dispensing output.
"For Pharmacists operating within this system, the role increasingly includes clinical assessment and patient consultations alongside the core dispensing function. For buyers, this introduces an additional dimension to assessing operational performance and future potential," Thomas said.
Prescription charges
There is a difference between England and Wales regarding prescription charging.
"In England, some patients are required to pay a prescription charge unless they are exempt. This creates an element of administrative burden for pharmacies and can occasionally affect the speed at which prescriptions are collected.
"In Wales, prescriptions are free at the point of supply. While this does not dramatically alter the overall economics of a pharmacy, it does remove a potential barrier for patients and can support more consistent dispensing patterns and simpler day-to-day operations," Thomas said.
However, there are some similarities in evaluating pharmacies, regardless of location.
"Buyers continue to focus on sustainable prescription volumes, local demographics, staffing costs, and the level of competition from nearby pharmacies."
Pharmacies that offer clinical services are better positioned for the long-term direction of healthcare policy, he added.
Thomas observed that England and Wales are both moving towards offering pharmacists a greater role in delivering frontline healthcare.
