The Pharmaceutical Journal
Vol 269 No 7211 p205
17 August 2002

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UniChem (www.unichem.co.uk)

UniChem investors unveil pharmacies

The first community pharmacies owned by participants in UniChem's enterprise investment scheme were publicly unveiled last week.

UniChem established its investment scheme in 2000. The scheme consists of a number of parallel companies, each of which is set up to attract tax-efficient investment from community pharmacists and others wishing to put money into pharmacy. The companies use invested funds to buy and operate community pharmacies. UniChem itself has a 27 per cent stake in each company and the pharmacies use UniChem as their principal wholesaler.

The first company, Pharmacy Initiative 1 Plc (PI 1), currently has around 15 to 20 investors and owns a pharmacy at Woodstock, Oxfordshire. A second company, Pharmacy Initiative 2 Plc (PI 2) owns pharmacies at Perivale, Middlesex, and Goring, West Sussex.

John Jaquiss, controller of commercial support at UniChem, explained that typical investors were pharmacists with capital to invest or those looking to retire from business ownership while remaining active in pharmacy. Investors can get income and capital gains tax relief if they comply with the terms of the scheme.

Woodstock Pharmacy was acquired by PI 1 last year and has undergone a full refurbishment, including the fitting of a consultation area with a computer to enable access to patients' medication records and electronic information sources such as the BNF and Martindale. The pharmacy has two pharmacists, one of whom is focused on clinical pharmacy and medicines management. Stock has been merchandised to reflect the upmarket, rural location and an older population. The pharmacy was officially opened by the Duke of Marlborough, owner of Blenheim Palace, on 9 August.

Mr Jaquiss said that Woodstock pharmacy represented the kind of pharmacy the investment companies were looking at — independent businesses providing services to local communities but which are underdeveloped or in need of refurbishment and investment. Each pharmacy is expected to retain its own local name and character.

Watmans Pharmacy, Perivale, was sold to PI 2 by its owner who has been kept on as pharmacy manager. The pharmacy underwent a minor relocation to larger premises and now has a glass-fronted consultation room, used for smoking cessation counselling and similar professional services. Stock is merchandised to reflect a suburban location with many young mothers.

Four further investment companies have been set up by UniChem but they are currently inactive. Mr Jaquiss said that there would be a rolling programme with companies being open for investment for 12 months, then closed for five years before action is taken to allow investors to realise any capital gains made. This could include stock market flotations, trade sales or mergers. Further details and prospectuses can be obtained from Mr Jaquiss at UniChem on 020 8391 2323 (e-mail john_jaquiss@unichem.co.uk).