Since 23 June 2025, NHS England has not accepted any new applications to open a distance selling pharmacy (DSP). Anyone who wants to run one now will need to buy an existing DSP, as there is no longer a route to open a new one.
For a long time, the distance selling route was the most common way to secure a new NHS pharmacy contract, so the closure has changed the market considerably. The rules for DSPs that are already operating have also tightened. Below we cover what changed in 2025, how DSPs work and what buyers should look at before purchasing one.
What Changed in 2025?
A distance selling pharmacy is an NHS pharmacy that provides its services remotely. Prescriptions are received electronically and medicines are delivered to patients, who do not visit the premises.
Most applications for a new NHS contract have to show that the pharmacy meets a need identified in the local Pharmaceutical Needs Assessment. DSPs were exempt from this test because they were meant to serve patients across England rather than in one area. The government took the view that the exemption was being stretched, as some DSPs had started providing services such as vaccinations to local patients in person. The rules were changed in three stages.
- 23 June 2025. The DSP market entry route closed and no new applications have been accepted since. Applications submitted on or before 22 June 2025 were assessed under the previous rules.
- 1 October 2025. DSPs could no longer provide directed services (advanced, national enhanced and enhanced services) face to face at their premises. These services can still be provided remotely, or off site if the service specification allows it.
- 31 March 2026. The temporary exception allowing Covid and flu vaccinations on DSP premises came to an end. Vaccinations now have to take place off site, and only where the commissioner permits it.
Existing DSPs were not closed as a result of these changes. They remain on the pharmaceutical list, and their owners are still able to sell them or apply to relocate. With no new contracts being granted, though, the number of DSPs in England will not grow, and buyers are competing for a fixed number of businesses.
What Is a Distance Selling Pharmacy?
A DSP holds an NHS contract in the same way as any other community pharmacy. It is included in NHS England’s pharmaceutical list, dispenses NHS prescriptions and is paid under the same Drug Tariff and fee arrangements. What sets it apart is the way it deals with patients.
The NHS (Pharmaceutical and Local Pharmaceutical Services) Regulations 2013 state that a DSP must not provide essential services to anyone who is present at the pharmacy or in its vicinity. In practice, services are delivered through electronic prescriptions, phone and video consultations and home delivery.
Most DSPs operate from offices or warehouse units rather than a high street shop. Some run as online pharmacies with their own website and app, while others concentrate on repeat prescriptions for care homes or patients with long term conditions.
How Does a DSP Work Day to Day?
A patient nominates the pharmacy through the NHS system, their GP sends prescriptions to it electronically, and the pharmacy dispenses the medicines and arranges delivery. A responsible pharmacist must be in charge, the premises must be registered with the GPhC and the pharmacy is inspected in the same way as any other.
There are a number of conditions specific to DSPs. Essential services must be available during opening hours to anyone in England who requests them, and the pharmacy’s publicity must not suggest that it only serves certain areas or certain types of patient. Prescriptions have to be dispensed with reasonable promptness, and refusing an item because the pharmacy cannot obtain it counts as a breach.
Deliveries can be made by staff or by a courier, although patients cannot be charged for the delivery of NHS items. Patients are not able to return waste medicines to the premises. The pharmacy needs arrangements for confidential telephone consultations and live video consultations, but a consultation room is not required.
DSPs also have to meet the Healthy Living Pharmacy requirements that apply to all pharmacies. For a DSP, this means having a website with an interactive healthy living page that patients can find easily.
NHS England can request the standard operating procedures that show how these services are delivered without face to face contact. A DSP that does not meet the conditions can be removed from the pharmaceutical list.
How Can You Get a Distance Selling Pharmacy Now?
As new applications have closed, the only option is to buy a DSP that is already trading. The process is largely the same as buying any other pharmacy, though there are some additional points to check.
1. Find a DSP for Sale
DSPs come to market less often than high street pharmacies, and with the number now fixed, this is unlikely to change. Some are advertised publicly, but many are sold privately through brokers. Our pharmacies for sale page lists the businesses we currently have on the market, and we can contact you when a suitable DSP comes up.
2. Carry Out Due Diligence
The standard checks on accounts, items volume, staffing and the lease all apply, and our buyer’s guide covers these in detail. A DSP needs some further checks on top of these.
If the pharmacy dispenses mainly for patients in one area, make sure its publicity and SOPs do not restrict access in a way that breaches the conditions. If it previously earned income from vaccinations or other services delivered at the premises, that income will have stopped or moved off site since 2025, so recent figures give a more accurate picture than accounts from before the rule changes.
Delivery is one of the largest costs for a DSP and cannot be passed on to NHS patients, which makes it important to look at margins after delivery costs. Many DSPs also rely on a website, an app or dispensing automation, and buyers should establish what is owned, what is licensed and whether those agreements will transfer on the sale.
It is also worth asking the seller for any correspondence with NHS England about breaches of the DSP conditions, and reviewing the pharmacy’s GPhC inspection reports.
The value of a DSP depends largely on its items, its service mix and its running costs. We would recommend a professional pharmacy valuation before making an offer.
3. Apply for Change of Ownership
If you are buying the pharmacy as an asset purchase, you will need to apply to NHS England for a change of ownership, together with fitness to practise declarations for the new owner. In a share purchase, the company holding the contract stays the same, although there are still notifications to make. Our guide to asset purchase vs share purchase explains the differences between the two.
The new owner must notify the GPhC within 28 days of completion. If the form is not received in time, the pharmacy will be removed from the register and must close until it has been restored. A company buying its first pharmacy will also need to nominate a superintendent pharmacist as part of this notification.
We handle these applications on behalf of buyers through our change of ownership and fitness to practise application service.
4. Consider Relocation
Where the current premises are not suitable, it may be possible to apply to relocate the DSP once you have taken over, provided the new premises also meet the DSP conditions. Our relocation and consolidation applications service can advise on this.
Is a DSP Still a Good Investment?
This will vary from one pharmacy to the next. The fixed number of contracts and the ability of a remote model to grow beyond a local catchment both work in a DSP’s favour. On the other hand, DSPs can no longer build income through face to face services at their premises, and their margins rely heavily on dispensing volume and delivery costs.
A DSP with high items and an efficient delivery operation can still be a sound purchase. Where a pharmacy relied on in person services for a large part of its income, buyers should look closely at how the business has performed since the changes came in.
Opening a New Pharmacy Instead
Buyers who would prefer a new NHS contract will need to make a standard application, which involves showing a need in the local Pharmaceutical Needs Assessment. This is more difficult than the old DSP route, although it remains possible in the right location. Our new pharmacy contract applications service can assess whether an area is worth pursuing.
If you are looking for a DSP to buy or would like to discuss whether your plans fit the current rules, please get in touch with our team.
