Aug 14 2024 38 mins
In this episode of the Pharmacy View Podcast, Founder Host Scott Carpenter is joined by Natalie Sirianni, Director & Officer in Effective Control of Attain Pty Ltd, Director of Musculoskeletal Australia, and a Board Member of the Australian Institute of Business Brokers (AIBB). As a leading expert in Pharmacy business brokerage, Natalie offers a deep dive into the current trends and transformations within the industry. From navigating the impacts of the 60-day dispensing policy to leveraging the benefits of the 8th Community Pharmacy Agreement (8CPA), Natalie provides a comprehensive analysis of how these changes are reshaping the market. Join us to explore how the enthusiasm of emerging Pharmacists and the resilience of the industry are creating new opportunities and driving growth in the Pharmacy business.
Natalie outlines their work in Pharmacy valuations and brokerage, including the impact of recent legislative changes such as the 60-day dispensing policy. Natalie explains the cyclical nature of Pharmacy valuations, influenced by economic conditions, community Pharmacy agreements, and interest rates. They highlight the industry's resilience during downturns and how its performance through events like COVID-19 has showcased its stability. Despite challenges such as the 60-day dispensing legislation, banks remain confident in lending to Pharmacies due to their consistent financial performance.
The discussion turns to the 60-day dispensing policy, which initially caused uncertainty and panic in the market. As the policy was implemented, the industry began to recover as the financial impacts became clearer. Natalie notes that while the new system introduced challenges, it allowed for better quantification and adjustment, showcasing the industry's ability to navigate changes with resilience and a historical perspective.
Natalie also addresses the broader impacts of the 8th Community Pharmacy Agreement (8CPA) and the new payments related to the 60-day dispensing policy. The 8CPA provides increased funding and stability, contrasting with the initial uncertainty of the transition period. This agreement has bolstered market confidence, leading to increased buyer interest and a resurgence in Pharmacy transactions. Sellers, particularly those nearing retirement who had previously postponed sales, are now re-engaging with the market, and valuations are expected to stabilize as confidence returns.
Natalie further talks about the invaluable role of young Pharmacists entering the industry through mentorship and succession plans. They describe this dynamic as mutually beneficial: younger Pharmacists gain essential knowledge and business acumen from their more experienced counterparts, while seasoned professionals receive fresh energy and enthusiasm. Natalie believes this intergenerational collaboration is crucial for the continued growth and vitality of the Pharmacy sector, fostering a positive transition and ensuring that the industry remains vibrant and forward-looking.
Natalie outlines their work in Pharmacy valuations and brokerage, including the impact of recent legislative changes such as the 60-day dispensing policy. Natalie explains the cyclical nature of Pharmacy valuations, influenced by economic conditions, community Pharmacy agreements, and interest rates. They highlight the industry's resilience during downturns and how its performance through events like COVID-19 has showcased its stability. Despite challenges such as the 60-day dispensing legislation, banks remain confident in lending to Pharmacies due to their consistent financial performance.
The discussion turns to the 60-day dispensing policy, which initially caused uncertainty and panic in the market. As the policy was implemented, the industry began to recover as the financial impacts became clearer. Natalie notes that while the new system introduced challenges, it allowed for better quantification and adjustment, showcasing the industry's ability to navigate changes with resilience and a historical perspective.
Natalie also addresses the broader impacts of the 8th Community Pharmacy Agreement (8CPA) and the new payments related to the 60-day dispensing policy. The 8CPA provides increased funding and stability, contrasting with the initial uncertainty of the transition period. This agreement has bolstered market confidence, leading to increased buyer interest and a resurgence in Pharmacy transactions. Sellers, particularly those nearing retirement who had previously postponed sales, are now re-engaging with the market, and valuations are expected to stabilize as confidence returns.
Natalie further talks about the invaluable role of young Pharmacists entering the industry through mentorship and succession plans. They describe this dynamic as mutually beneficial: younger Pharmacists gain essential knowledge and business acumen from their more experienced counterparts, while seasoned professionals receive fresh energy and enthusiasm. Natalie believes this intergenerational collaboration is crucial for the continued growth and vitality of the Pharmacy sector, fostering a positive transition and ensuring that the industry remains vibrant and forward-looking.