SA Drug Retailers – Race for Pharma Space

In this initiation report on Clicks (CLS) and Dis-Chem (DCP), we look at factors impacting growth in the pharmaceutical retail sector, including increased regulations and the shortage of skills.

To better understand the potential impact of the National Health Insurance (NHI), we assess the current state of the SA private and public healthcare sector. We highlight concerns regarding the ageing population and the limited primary healthcare facilities.

Competition for opening of pharmacies has intensified and we believe this could drive up the price multiples of pharmacies.