England saw nearly 500 pharmacy closures in the last 12 months
Analysis by IQVIA revealed that over the past four years, from May 2020 to May 2024, the average number of prescriptions processed by pharmacies has risen by 8 million per month.
However, this is happening against the backdrop of a declining number of pharmacies. During these four years, nearly 900 pharmacies have closed in England, with almost 500 of those closures occurring in the last 12 months.
Carol Alexandre, vice president at IQVIA, presented the data at the recent SIGMA UK Community Pharmacy Conference 2024, where she shared insights into the dynamics of the UK market, the pharmacy sector, and the Pharmacy First initiative.
As of August 2024, there were just 10,059 community pharmacies (excluding distance-selling pharmacies) in England, 1,589 less than in March 2015, when the number stood at 11,647 (source: NHS BSA).
There has been a significant shift in the distribution of pharmacy ownership, with independents (single pharmacies and chains with 1-5 stores) and regional chains (pharmacy chains with 6-200 stores) growing at the expense of managed chains.
Over the past year, independents have increased by 557, while regional chains have grown by 116.
Independents now account for 44% of all pharmacies in England, holding 44.3% of the market share.
Meanwhile, the UK pharmacy market continues to grow in both volume and value.
According to IQVIA data, the UK community pharmacy market experienced a value growth of 4.9% and a volume growth of 3.5% (in terms of the number of packs) from June 2023 to June 2024,
The hospital market saw similar volume growth to community pharmacies, but its value increase was significantly higher, with a rise of 12.6% during the same timeframe. “Value is at list price and does not take into account discounts or rebates,” Carol noted.
Community pharmacy was managing 90% of the total volume of drugs dispensed in the UK but represented only 36% of the total value.
In contrast, hospitals accounted for just over 10% of the total volume of dispensed drugs, yet contributed to 64% of the overall value.
Generics accounted for 67% of the volume, growing at 4.9%. However, their value is increasing faster at 7.4%.
Carol noted that factors such as shortages and price inflation are driving the value higher than the volume.
The uptake of new services, like Pharmacy First, contraception, blood pressure checks, and smoking cessation, is gradually gaining momentum with more pharmacies enrolling.
Within three months of its launch, 88% of pharmacies implemented the service. The majority of Pharmacy First consultations, specifically 61%, were related to UTIs and/or sore throats.
Notably, independent pharmacies conduct 40% of these consultations.
Carol noted that when considering the future of pharmacy, it's essential to focus on online pharmacies rather than just traditional brick-and-mortar establishments.
She cited NHS data showing that over the past four years, the share of distance-selling pharmacies has increased from 4% to 7%.
Carol expressed optimism that the evolution of primary care services in the coming years will create lasting opportunities for pharmacies.
Sukhi Basra