Online only pharmacy secures £7m to keep 100 per cent growth momentum

Pharmacy2U offers a home delivery repeat prescription service for NHS patients. After doubling growth in six months, the company secured further growth capital to keep up the pace.

In half a year, NHS approved online only pharmacy, has reported 100 per cent growth, and to keep up its momentum, the business has secured a further £7 million of investment from BGF (Business Growth Fund) and other shareholders.

The funding package comes ten months after the business secured an initial £10 million growth capital investment from BGF to support the merger between leading online pharmacy companies and to create a streamlined home delivery repeat prescriptions service for NHS patients. The new funding is to accelerate the company’s marketing strategy and deliver long-term growth across the business.

Based in Leeds, Pharmacy2U has established a dispensing hub, capable of dispensing up to 700,000 prescription items a month.

The management team, led by CEO Mark Livingstone, CFO Gary Dannat, and COO Daniel Lee, has successfully integrated the two businesses, improved operational efficiencies and transformed the brand and marketing strategy.

A newly re-designed website and a multi-channel marketing plan, including TV, print, radio and online advertising, has doubled new patient registrations in the last six months with monthly prescription volumes more than doubling over the last 12 months.

With the continued push by the Department of Health to drive cost efficiencies throughout the pharmacy sector, Pharmacy2U’s model provides a scalable, cost-efficient model and is well placed to capitalise on the positive market dynamics.

“With BGF’s initial investment we were able to successfully merge two of the UK’s leading online pharmacists. BGF has provided us with counsel throughout the year and we are delighted to have secured further investment from them and other shareholders,” Livingstone said. “We look forward to implementing our growth strategy and pioneering the most cost effective digital pharmacy service we can.”

Praseeda Nair

Praseeda Nair

Praseeda was Editor for from 2016 to 2018.

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