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Independent Community Pharmacy

A nearly forty-year-old community pharmacy in Salem, running prescriptions, compounding, immunizations and medication therapy management with a three-person team and its own delivery service.

Business Highlights

  • Nearly forty years of continuous operation under a single owner
  • Revenue comes from five lines beyond dispensing: compounding, immunizations, durable medical equipment, medication therapy management and delivery
  • Three-person team, which keeps overhead low for a pharmacy at this revenue
  • Local delivery works as a retention mechanism in a category where customers switch on friction

Considerations / Questions to Ask

  • What share of revenue and margin comes from third-party reimbursement, and how have those rates moved over the last three years?
  • How much of the compounding and medication therapy management revenue depends on the owner's own licensure and relationships?
  • What is the pharmacy technician's tenure, and are they interested in staying through a transition?
  • Are there aged or slow-moving items inside the inventory figure?
  • What are the lease terms on the pharmacy premises?

Opportunities

  • Promote the existing pharmacy technician into an operator role, a path the owner has already identified
  • Expand medication therapy management, the highest-margin line already in place
  • Use the existing delivery route to serve nearby assisted living and care facilities
  • Add adherence packaging, which suits an existing base of repeat prescription customers