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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.

A group of 20 parliamentarians has written to health secretary Wes Streeting MP, calling for urgent government action to address the growing financial crisis facing community pharmacies. In the cross-party letter, supported by Community Pharmacy England (CPE), the MPs warned of a real risk of more pharmacy closures, with one in six pharmacy owners saying that they are unsure if their pharmacy will survive the year. They have urged the Department of Health and Social Care (DHSC) and NHS England (NHSE) to prioritise long-term planning for pharmacies, including the implementation of the Community Pharmacist Prescribing Service. The MPs have also highlighted the need for more effective marketing for Pharmacy First to increase both walk-ins and referrals to this critical service. CPE chief executive Janet Morrison welcomed the support of 20 cross-party parliamentarians and recognising the vital role pharmacies play in the local community. She stressed the urgent need for immediate government intervention to ensure the survival of the sector and to maximise its potential in providing accessible care.

In response to concerns raised by Community Pharmacy England (CPE), ministers have decided to lower the October threshold for the Pharmacy First service to 20. This decision addresses a major worry for pharmacy owners who have struggled to meet the required number of clinical pathways for monthly Pharmacy First payments, especially as the October increase to 30 pathways approached. CPE has been actively engaged in discussions with the Department of Health and Social Care and NHS England over the past few weeks to address this issue. Commenting on the decision, Janet Morrison, CEO of Community Pharmacy England, said: "It is great that ministers have responded to our concerns about another increase to the Pharmacy First payment threshold: this decision will save many community pharmacies from missing out on a vital payment this month." Morrison added that CPE will continue to monitor service data and, if needed, make further representations to ministers about future months. She also emphasised the need to find a long-term solution, which involves "NHS England marketing Pharmacy First effectively and ensuring that GPs are actively referring people to the service."

Pharmacy minister Stephen Kinnock has pledged to enhance the role of community pharmacies, particularly in deprived areas, by making better use of the skills of pharmacy teams. In a video message at the SIGMA UK Community Pharmacy Conference 2024 on Sunday, Kinnock also announced plans to expand the Pharmacy First initiative and introduce an independent prescribing service, making prescribing an integral part of the service delivered by community pharmacies. He said: "Since taking on the role of minister of state for care in government, my message has been very clear: we must get our fantastic primary care sector back on its feet to be able to deliver for our patients. "This government is committed to shifting care from hospital to community, from analogue to digital, and from sickness to prevention, and pharmacies will play a vital role in that." Kinnock acknowledged the pressures faced by the sector and expressed concerns that so many community pharmacies have exited the market over the past decade.

This year has been another turbulent year for the UK pharmacy sector. The sector continues to undergo significant transformations, driven by evolving healthcare needs, regulatory shifts, and economic pressures. For pharmacy owners, staying abreast of these trends is crucial to navigating the challenges and seizing opportunities. IQVIA, a leading global provider of clinical research services, commercial insights and healthcare intelligence, delves into the key issues, challenges, and developments shaping the sector, drawing insights from the latest industry data and reports, supported with data released by NHS England (NHSE). The community pharmacy landscape remains unsettled, with disruptive market dynamics at play. The decline in the number of pharmacies, particularly within the Managed Chains channel, underscores the volatility of the market. The number of active pharmacy contractors in England has dropped significantly, with more closures than openings each month, exacerbated by the exit of Lloyds Pharmacy from the UK market which completed at the end of 2023. In the year ending June 2024, there was a net closure of 440 sites within NHSE which equates to a 4% decline in available pharmacies1. The increase in closures from June 2023 was driven by the closures of Lloyds in Sainsburys and the ongoing divestment of the Boots estate.

Christie & Co, a specialist business property adviser, recently finalised the sale of two pharmacies-one located in Wales and the other in Hampshire. Sylvia Williams Chemist, a well-performing community pharmacy located on the main high street of the Vale of Glamorgan market town of Cowbridge, has been sold after an impressive 50 years of ownership. Dispensing an average of 12,500 items monthly, the business has been owned by Kate Thomas and her family for nearly 50 years. It was put on the market to enable her retirement and allow her to focus on other interests, the broker said. The pharmacy has been purchased by Zaid Salih, making it his second pharmacy acquisition. Jonathan Board, Director - Medical at Christie & Co, who handled the sale, said that Sylvia Williams Chemist attracted a wide range of buyers.

The National Pharmacy Association (NPA) has raised the alarm that many community pharmacies are facing losses on NHS prescriptions due to the "broken" funding system. An analysis of prescription drug prices by the NPA revealed that pharmacies are being underpaid by the NHS by up to £75 a pack for common medicines, resulting in losses of thousands of pounds each month. The analysis report released today (16 October) shows the government reimburses £18.06 for a 56-tablet pack of Amantadine, a drug used to treat Parkinson's symptoms. However, the market price of the drug is £94.05 per pack, leading to a loss of £75.99 per 56-tablet pack for pharmacies-amounting to a shortfall of over £1 per tablet. In some instances, NHS funding covers only one-fifth of the cost that pharmacies have to pay for medicines, according to new figures from the NPA.

The pharmacy market in England has seen a significant transformation in recent years, driven by a trend of large-scale disposals by corporate operators. Jonathan Board, Director - Pharmacy, Christie & Co, has told Pharmacy Business that several corporate operators are looking to sell off their marginal or non-performing assets while independent operators are eager to acquire and enhance businesses further. Due to their scale, corporate operators are compelled to adopt a 'one size fits all' approach. However, Jonathan believes this puts them at a disadvantage compared to many independent operators who are better positioned to meet local patient and community needs, delivering a more personalised approach to patient engagement, and a variety of other services "As such, where corporate disposals have taken place, there has been a steady stream of independent operators eager to take over and develop the businesses further," he said.

As NHS England prepares to relaunch its Pharmacy First public-facing campaign on Monday, 11 November, Community Pharmacy England (CPE) has highlighted the need for a sustained, large-scale effort to maximize the service's impact. Minor updates have been made to the original campaign materials from earlier this year, including additional information on the age criteria for the clinical pathways. Community pharmacies are informed that campaign materials are available on the Department of Health and Social Care's Campaign Resource Centre website. These include a campaign toolkit, social media assets, and posters. These materials can be used ahead of the official launch date. CPE chief executive Janet Morrison said: "It's good that we are finally seeing the resumption of the NHS Pharmacy First marketing campaign, alongside new resources to help with promotion, as we head into winter.

Armstrong's Pharmacy in Sheffield, South Yorkshire has been sold for the first time in 67 years for an undisclosed price. Located on the corner of Gleadless Road, three miles south-west of Sheffield City Centre, the pharmacy dispenses an average of 11,332 items per month, according to Christie and Co, the broker that facilitated the sale. Owned and operated by the Armstrong family since 1957, the business has been acquired by a husband-and-wife team of first-time buyers. The new owners, whose identities were not disclosed, plan to expand the pharmacy by adding more consultation rooms and increasing services offered to the local community. Chris Armstrong, the previous owner, ran the business with his wife Jane before deciding to sell in preparation for their retirement. Commenting on the sale, Chris said: "It was a big decision to sell our multigenerational business but, when it was time to retire, we were glad that Christie and Co were able to quickly market the business successfully."

"Locums are a vital part of pharmacy to ensure branches can remain open and provide vital services to communities and patients across the country," said Jonathon Clarke, CEO and founder of Locate a Locum. In an exclusive email interaction with Pharmacy Business, Jonathon noted that while the demand for locums remains high, there has been a dip from the post-COVID peak, which is also reflected in their rates. Due to the shortage of registered pharmacists, employers are actively seeking locums to cover gaps in their rotas. "Legally, there needs to be a registered pharmacist on site or else a pharmacy is unable to open resulting in an NHS fine," he highlighted. Whether employed or working as self-employed locums, pharmacists face many issues on a day-to-day basis, such as insufficient staffing or commercial pressure to hit "targets". However, locums also face several unique issues on top of these. According to Jonathon, a significant challenge locums face due to the changing market environment in the UK is the "rising workload" associated with offering advanced services such as Pharmacy First.

A key person is an individual who contributes significantly to the success of the business due to their skills, knowledge, experience, and business acumen. In most community pharmacy businesses, which are usually owner managed, the key person(s) are the directors who are also usually the owners of the business. In large organisations, key person(s) could be found at various levels of the overall organisation structure such as managing directors, top salespeople, or technical experts. If you are diagnosed with a critical illness that results in you being unable to work, the financial security of your company, your co-directors and family members involved, could be jeopardised. It could also threaten everything you have worked so hard to build over the years. Where you own shares in the business, what would happen to your shares in case of critical illness or death? In the event of your death, your family would inherit your shares, but it would be impossible for them to take over your role in the business as they may not have the necessary skills or qualifications. There are a few other options available: The family can take a share of profits from the company, but this might be much less if the company is struggling because of your absence. The family could wind up the company and receive a share of its residual value. Sell the shares to your co-directors but they may not have the funds available to be able to purchase your shares. Sell the business on the open market but this would depend on finding a buyer who is prepared to pay the asking price and this could be a long, difficult, and costly process.