October 11th 2023

By Ailsa Colquhoun

Open a pharmacy? We could make a fortune!

DDA conference presentation provides a reality check

“It would be a great idea to open a pharmacy in our surgery – we could make a fortune!”

Or, so you might think! said DDA Board Member Dr Philip Koopowitz in a personal presentation to the DDA 2023 conference.

In his presentation, Dr Koopowitz gave conference delegates a reality check of opening a pharmacy.

Looking at comparative costs, profit potential and regulations, he concluded: “[It’s] not for the faint-hearted Only take on running a pharmacy if someone else opening a pharmacy threatens a significant amount of your dispensing.”

In his presentation, Dr Koopowitz suggested the following comparative gross profits are possible:

• Well-run dispensing doctors’ gross percentage profit: 35-40 per cent
• Well-run pharmacy gross dispensing profit: 20-25 per cent
• Well-run hybrid pharmacy gross dispensing profit: 25-30 per cent

The presentation looked at the details of opening and running a pharmacy, including regulations, costs and forecast income. Options for opening a pharmacy include:

• Stand-alone pharmacy – off site
• Stand-alone pharmacy within surgery
• Pharmacy in same space as dispensary - separate stock held
• Single stock held – hybrid operation

The presentation also looked at the implications of hybrid operations and wholesaler dealer licensing.

Among the cons are:

• Regulations
• Script direction

Pros include: VAT advantages.

View the full presentation: Pharmacies, Hybrids and Wholesale Dealer Licenses