Natalie Sirianni identifies four key business messages from the recent APP2020 Online presentations
I know you are all very busy at the moment and may not have the time to watch the APP Online presentations, so I thought I would give you some key points that I took away from the presentations that I watched – from a business perspective:
- 60 Day Dispensing
As we all know, the Government were looking at the possibility of 60 Day Dispensing very closely in their 7CPA negotiations. The 7CPA Panel Session at APP explained that the COVID-19 pandemic has shown us that this proposal does not work for supply in times like this. Therefore, the Government can now see that it does not work. This will no doubt be a positive for all of us.
- Pharmacy is Counter-cyclical
Christian Sirianni of Medici Valuations showed data in his presentation to confirm that historically, pharmacy has been counter-cyclical. That is, where there have been downturns in the economy, pharmacy has actually prospered. This is very pertinent and obvious in the current times and no doubt you are feeling this in your pharmacy.
It sounds like we are almost there! Paul Naismith of FRED advised in his session that the legislation is in place and the work is underway to bring it into fruition. No doubt this will be an important piece going through these challenging times. Paul advised that everyone is working together to fast-track deployment of some components due to COVID-19. Watch out for announcements in the coming weeks.
- Wider Economic Conditions
Craig James, Chief Economist at CommSec, advised that the economic situation remains relatively fluid with Government Stimulus Packages, RBA reducing interest rates to a record low of 0.25% and significant amount of support for financial systems around the globe to get through this crisis in terms of liquidity. Confidence has been impacted significantly by the coronavirus, drought, bushfires and low wages. The good news is, Craig highlighted that, “Pharmacies are in a position of strength”. These views were similar to those covered by Christian Sirianni in his presentation.
These are some of the key business points I took away from some of the sessions from APP Online.
Check out the various presentations at APP Online at https://www.appconference.com/apponline
Natalie Sirianni, is director of Attain Business Brokers. If you have any questions about the pharmacy business sales market or your pharmacy in particular, please feel free to contact me to discuss on 1300 ATTAIN (288 246). I look forward to discussing with you further!
If you are considering buying a pharmacy and would like to learn more about the pharmacy market, the Pharmacy Ownership Ready Conference is being held in Melbourne in May and is a must attend event for any prospective pharmacy owner. The conference will include a range of sessions on how to buy a good pharmacy at a great price, understanding financial statements, valuation principles, legal factors, partnerships and much much more! I look forward to seeing you there!