Markets with Madison: Pharmacies v Chemist Warehouse - who’s winning the medicine mark up?

The listed owner of the Life and Unichem pharmacy franchises says it has been impacted by the aggressive expansion of Chemist Warehouse nationwide, but is confident it can still compete with its marked up medicine prices.

“It has had a bit of an impact on margins, but our strategy is around making sure we show value to the customer, coupled with our expert care and advice,” chief executive of NZX listed company Green Cross Health Rachael Newfield told Markets with Madison.

In light of the competition, Newfield said the company was having to be competitive with pricing on over the counter products like medicine, supplements and cosmetics.

Dispensing of prescriptions and vaccinations was where pharmacies made most of their money, she said.

The now scrapped $5 prescription fee was not collected as revenue, so she was pleased to see that tax ditched.

Watch Newfield explain the economics of a pharmacy, and if they are benefiting from hospital wait times, in today’s episode of Markets with Madison above.

Plus, Greg Smith from Devon Funds reveals why investors may be unimpressed with Tesla and Netflix earnings results.

Get investment insights from the experts on Markets with Madison every Monday and Friday on the NZ Herald.

Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.

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Madison Reidy is the host of New Zealand’s only financial markets show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.