Question 1

What is the total addressable market for the Australian pharmacy sector?

Accepted Answer

The Australian pharmacy market is projected to reach $22.2bn by 2025, expanding at a 2.9% CAGR. This growth is structurally supported by an ageing population where individuals over 60 years old require 33 prescriptions annually, compared to just 3 for those under 34.

Question 2

How quickly is the industry transitioning to digital sales channels?

Accepted Answer

Online pharmaceutical expenditure will reach $3.0bn by 2025, representing a 14% penetration of total industry spend. This shift is accelerated by the adoption of electronic prescriptions and the evolution of fulfillment models following recent consumer behavior changes.

Question 3

What does the unit economics and scale of the physical pharmacy network look like?

Accepted Answer

There are approximately 5,800 pharmacies in Australia, with average annual revenue per location forecast to grow from $3.3m to $3.7m by 2025. Efficiency is high, with the average pharmacist dispensing 60,000 prescriptions per year.

Question 4

How secure is the revenue stream for these businesses?

Accepted Answer

The sector benefits from high revenue certainty as the PBS provides 60% of total pharmacy funding. Total industry revenue is expected to grow faster than the general population due to the increasing healthcare requirements of the 60+ demographic.

e-Pharma: the rise of online pharmacy

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