A pharmacy is one of the most stable businesses in the retail sector: demand is not seasonal and is largely unaffected by economic fluctuations. However, it is also one of the most heavily regulated sectors, where the structure of a transaction is determined by licensing requirements rather than financial considerations. The company publishes information on the purchase and sale of established businesses business-broker.com.ua.
The short answer
A pharmacy is valued at 12–24 months’ net profit – longer than typical retail businesses due to licensing requirements, high barriers to entry and stable demand. The retail sale of medicines is subject to licensing, with the licensing authority being the State Service of Ukraine for Medicines and Drug Control. When purchasing a stake in a limited liability company (LLC), the licence remains with the company; when purchasing assets, you need your own licence. This is precisely what makes the sale via corporate rights the primary method in this niche.
Why is the mark-up higher than in a normal shop?
| Format | Payback period in months |
|---|---|
| Grocery shop | 10-14 |
| Cosmetics shop | 11-15 |
| Mini-market | 12-16 |
| Pharmacy | 12-24 |
| Supermarket | 18-30 |
Reasons for the higher multiplier:
- High barrier to entry: licence, requirements regarding premises, staff and equipment
- Stable demand, with little dependence on the season or the economic situation
- A loyal customer base tied to a specific location
- The complexity of setting up from scratch: it takes a considerable amount of time, from finding premises that meet the regulations to obtaining a licence
You can use the business valuation calculator to work out a rough estimate based on specific figures. Stock levels at the pharmacy are added separately.
Licence: the key issue in the agreement
The retail sale of medicinal products is a licensed activity. The relevant licensing conditions are laid down by a resolution of the Cabinet of Ministers, and the licensing authority is the State Service of Ukraine for Medicinal Products and Drug Control.
| Structure of the agreement | What about the licence? |
|---|---|
| Purchasing a share in a limited liability company | The licensee remains the same; the licence remains with the company. Any changes to the information submitted to the licensing authority must be reported |
| Purchase of pharmacy equipment | The licence is non-transferable. The purchaser must have their own licence and a properly registered place of business. |
Practical conclusion: Purchasing equipment, furniture and remaining stock does not entitle you to trade in medicinal products. Consequently, in this sector, the vast majority of transactions are structured as the sale of a shareholding in a company.
At the same time, this approach means that you inherit all the company’s liabilities: tax risks, disputes and debts. The due diligence must be thorough, and the contract must include representations and warranties from the seller.
Please note the following changes: The licensing conditions in this sector were updated in 2026, and the launch of a dedicated agency was planned for early 2027. It is therefore advisable to check with a lawyer which authority is currently responsible and which version of the conditions is in force at the time of the agreement.
Requirements for the premises
This is the second critical area. The premises must comply with the licensing conditions, otherwise the licence is at risk.
Minimum total floor areas for a pharmacy:
| Location | Total area | Retail space |
|---|---|---|
| City. | 50 square metres | 18 square metres |
| Village | 30 sq. m | 11 square metres |
| Village | 18 square metres | 6 square metres |
There are specific regulations governing the location of pharmacies within healthcare facilities, so the floor area must be checked against the specific type of premises.
What else to check inside the premises:
- Isolation and the existence of a separate entrance, subject to the exceptions provided for by law
- Accessibility for people with reduced mobility
- Division into retail and storage areas
- Temperature range and storage conditions
- The serviceability of temperature control equipment
Connection to the tenancy: If the premises are rented and the lease is due to expire, it is not only the business but also the licence status that is at risk. For a pharmacy, a short-term lease poses a double risk, and this must be factored into the price.
Requirements for the Head of Department
The third critical factor that buyers tend to underestimate.
General rule: The head of a pharmacy must hold a Master’s degree in «Pharmacy» with a specialisation as stipulated by the licensing conditions, hold the relevant certificate or document attesting to their professional qualifications, and have at least two years’ experience in the pharmaceutical sector.
Exceptions are provided for: For villages, towns and areas of active hostilities, the licensing conditions permit certain categories of associate degree holders in pharmacy or nursing, without any work experience requirement. For staff with nursing qualifications, the requirement for a specialised certificate will apply from a later date.
What this means for the buyer:
- A person without a pharmaceutical qualification may own a pharmacy
- However, the head must meet the requirements
- If the manager goes off with the sales assistant and you have no one to cover for them, the pharmacy may be unable to continue operating
- Therefore, the agreement with the head of department is verified in person and recorded prior to the contract being signed
Specific requirements depend on the location and may vary, so it is advisable to check them against the current version of the licence conditions.
What is included in the agreement
- Shop fittings: display cabinets, shelving, counters
- Refrigeration equipment for thermolabile medicines
- Temperature and humidity control equipment
- Cash register equipment and accounting system
- Furniture and refurbishment of premises with zoning in accordance with regulations
- Rights under a tenancy agreement
- A licence, where the structure of the agreement so provides
- Stock balances, as a separate item
- Terms and conditions for suppliers and distributors
- A base of regular customers, if there is a loyalty scheme
- Team: head, pharmacists
Stock levels at the chemist’s
A separate section with stricter requirements than in a normal shop.
- Expiry dates for each item: an expired item is not merely unsaleable, but constitutes a breach
- Storage conditions: check temperature-sensitive preparations and ensure that the correct temperature is maintained
- Turnover by group: products that have been in stock for a long time are valued at a discount
- Consistency of purchase prices with documents from distributors
- Reconciliation with the accounting system
- The availability of all necessary documents for the consignment
Carry out the stock-take in person, on the day of handover, drawing up a separate list of items nearing their use-by date.
What to check before signing a contract
- Validity of the licence based on official data from the licensing authority, rather than on a copy provided by the seller
- Compliance with the details stated in the licence actual business activities and address
- Absence of outstanding orders and breaches that may lead to revocation
- Compliance of the premises requirements regarding floor space, zoning, accessibility and storage conditions
- Term of the tenancy agreement and the landlord’s willingness to work with you
- Qualifications required of a head of department and his willingness to stay
- Pharmacists' team and whether they have the necessary documents
- Financial figures for the past 12 months: turnover, number of receipts, average receipt value, sales breakdown
- Stock levels by expiry date and turnover
- Distributor Terms and Conditions and whether there are any outstanding debts
- Condition of refrigeration equipment and temperature control systems
- The legal status of the company, if a shareholding is being purchased: debts, disputes, tax risks
- Competitive environment: The arrival of a chain pharmacy nearby is changing the local economy
Common mistakes made by buyers
- To purchase equipment and stock, on the assumption that the licence will be transferred
- Failure to verify the validity of the licence against official records
- Failing to establish the requirements for the head of department and not having a replacement
- Failure to check that the floor area of the premises complies with the regulations
- Failing to take into account that a short-term tenancy agreement jeopardises the licence status
- Accept stock remaining without checking the use-by dates
- Buy a shareholding without checking the company’s tax and legal history
- Failure to check the storage conditions for heat-sensitive medicines
To get an idea of the price range and the structure of offers in this sector, take a look at the current listings: Go Deal Brokers runs Ukraine’s largest Telegram channel for the sale of ready-made businesses, «GoDealBrokers Ready-Made Business Sales». Be sure to discuss the specific terms of the transaction with a solicitor specialising in pharmaceutical licensing: the requirements are detailed and subject to change from time to time.
Main
The pharmacy is valued at 12–24 months’ profit, with stock valued separately. The structure of the transaction is determined by the licence: when purchasing a share in a limited liability company, the licence remains with the company; when purchasing assets, you will need your own licence. There are three critical areas to check: the validity of the licence according to official records; compliance of the premises with regulations regarding floor space and zoning; and the qualifications of the manager, including their willingness to remain in post. For a pharmacy, a short-term tenancy agreement jeopardises not only the business but also its licence status.
