Opening vs Buying a Pharmacy: Which Should You Do?

Should you buy an existing pharmacy, or open a brand-new one from scratch? It’s one of the most common questions I get — and the headline numbers tell the story: one route can cost £800,000 plus, the other a £750 application. But price is only the start of it. Here’s the honest comparison on cost, time, risk and control.

This is the written companion to my video on the same question. If you’d rather hear it straight from me, watch it here, then read on for the detail.

First, understand what you’re actually buying

Whether you take over an existing pharmacy or set up a brand-new one, the thing with real value is the same: the NHS contract. The fixtures, fittings and stock have value too — but the contract is the prize. Why? Because it’s an income stream backed by the government. People, families and investor groups like pharmacy precisely because that income is seen as safe: it’s regular, it’s protected, it “won’t go bust,” and it can be very profitable. That perception of stability is what gives the contract its price.

And there are only two ways to get hold of one: buy an existing pharmacy that already holds the contract, or apply for a brand-new contract from scratch. Everything else is detail. (If you want the deeper mechanics of why entry is restricted, I’ve covered it in why you can’t just open a pharmacy.)

Why most people buy

Most buyers go for an existing pharmacy for one simple reason: it’s already set up and running. The staff are there, the stock is there, the goodwill is there, the income is there — it’s all done. You don’t have to start from zero.

I started one from scratch, so I’ll tell you plainly what that costs you: time, and a lot of it. It was a 100-hour-a-week business in the early days — I worked eight in the morning to twelve at night. It’s a long, hard journey. So I understand completely why people would rather take on a shop that’s already making money than build one from nothing.

But that convenience has a price tag. As a rough guide, a pharmacy generating around £10,000 of profit a month will typically sell for at least £800,000 and upwards. It’s a lot of money — but what you’re buying is a guaranteed, government-secured income stream, not a gamble on a startup.

The catch with buying: you inherit everything

Here’s what first-time buyers underestimate. When you buy an existing pharmacy, you don’t get a blank canvas. You inherit its liabilities and relationships: the staff and their employment rights, the working relationship with local GP surgeries, the trust (or lack of it) with patients, the way the place runs. You can’t just change all that because you feel like it. There’s real risk wrapped up in those relationships, and substantial sums on the line — and if you’re not a pharmacist yourself and don’t know how to run a pharmacy, it can get very difficult, very quickly.

When would I consider opening from scratch?

Opening a new pharmacy used to have an obvious trigger: a new GP practice opening up nearby. That market has largely gone — patients now order medicines remotely and have them delivered, so being right next to a surgery matters far less than it did. Today, the situations I’d actually consider are a new housing estate, or a busy parade with genuine footfall and unmet need.

But remember: opening is controlled market entry. You need approval from the local Integrated Care Board (ICB) — the group that decides whether there is or isn’t a need for a pharmacy — and they base that decision on the Pharmaceutical Needs Assessment (PNA), usually refreshed every three to five years. The PNA tries to foresee where need will appear (a planned housing estate, for example). My honest observation: once a need is signposted, applications tend to go in fast — so you have to be alert and well-prepared.

The risks on both sides

Neither route is risk-free. Be clear-eyed about both:

If you open from scratch, the risk is time and uncertainty — six to eight months (sometimes far longer), bureaucracy, and no guarantee at the end. If you buy, the risk is money and liability — substantial sums, inherited staff, stock and relationships, and the very real challenge of running a pharmacy if it isn’t your trade. There’s no universally right answer; there’s only the right answer for you.

So, which should you do?

Be honest about three things: your capital (can you fund £800k, or is a £750 application all you want to risk?), your appetite for risk and grind (months of red tape, or a big cheque and inherited baggage?), and whether you can actually run a pharmacy. If you have capital and want income now, buying usually wins — provided you respect the liabilities. If you have patience, the right location and the stomach for the process, opening can be a far cheaper way in. And whichever you choose, remember the wider point I keep making: there’s far more you can do with a pharmacy than dispense — if you view it differently.

How I can help

If you’d like to open a pharmacy, weigh up a purchase, or develop your clinical skills and set up a private clinic or consultancy alongside it — that’s exactly the work I do. I can help you with applications start to finish, valuing and pressure-testing a deal, and building the services that turn a contract into a real business.

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