Pharmacy2U (P2U), the UK’s leading NHS approved online pharmacy, has secured a £7m funding package from BGF, and other shareholders to implement further growth plans.
The funding package comes 10 months after the business secured an initial £10m growth capital investment from BGF to support the merger between leading online pharmacy companies Pharmacy2U and ChemistDirect.co.uk to create a business with a 1.5 million customer base and unrivalled experience in digital pharmacy services.
Based in Leeds, the new business created a state-of the-art dispensing hub last year – capable of dispensing one million prescription items a month. Pharmacy2U also offers an online home delivery prescription service for NHS patients, including clinical advice from pharmacists. Online doctor consultation services are part of the offering, as well as a range of over 6,000 health and wellbeing retail products.
Over the past 10 months the management team, led by Mark Livingstone, has successfully integrated the two businesses, realising some immediate cost synergies and has quickly moved to capitalise on the trend in online prescriptions over the traditional high-street chemist model.
A new multi-channel marketing campaign including TV and radio advertising has driven a strong uplift in new patient registrations. During the past year Pharmacy2U has grown the number of active customers by 150% and more than doubled monthly sales to the NHS.
The new funding round will enable the company to take advantage of immediate opportunities and accelerate longer-term growth across all divisions. BGF is investing £4.3m.
Mark Livingstone said: “With BGF’s initial investment we were able to successfully merge two of the UK’s leading online pharmacists. We are delighted to have secured further investment from them and other shareholders as we continue to pioneer the most cost effective digital pharmacy services we can.”
Richard Taylor, BGF said: “We continue to be excited by the online pharmacy sector. In Pharmacy2U, we are backing a leading provider and a strong management team with a clear strategy for further growth.
“This deal is another example of BGF’s ability to follow our initial investments in the companies we back, and we are delighted to be providing continued support to the business.”
The investment was led by BGF’s Richard Taylor, Chris Boyes and Rob Johnson. Richard Taylor will join the board of the combined business.
The investment was led for BGF by Richard Taylor and Rob Johnson.