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3 Tips for Buying a Pharmacy

The latest Gavel & Pestle Podcast focuses on – 3 Tips for Buying a Pharmacy Pharmacy Buyers must be careful […]

May 09, 2017 Community Pharmacy, Law of the Land

The latest Gavel & Pestle Podcast focuses on – 3 Tips for Buying a Pharmacy

Pharmacy Buyers must be careful when buying a pharmacy. An ill-advised pharmacy purchaser may find himself purchasing a headache, and a prepared pharmacy purchaser may find herself getting a better deal than originally anticipated.

The first 2 major questions to answer before beginning the process is to determine the type of pharmacy to purchase and the way you intend to purchase it.

  1. 503A v 503B
    1. Is there adequate space
    2. Compounding within state v out of state
    3. Patients in state v out of state
    4. Large volume compounding v small volume compounding
    5. Sterile v non sterile


Recommended Agreements

  • Agreements with various insurance providers
  • Lease on facility
  • Building/store lease
  • In-store vending machines, such as copiers or photo-processing kiosks
  • Collection service contracts, such as water, utility or phone
  • Business or franchise contracts with third parties, such as UPS or the United States Post Office
  • Building and/or parking lot maintenance contracts
  • Drop-ship vendors for front-end products
  • Direct accounts with suppliers of gifts, cards and so on
  • Pharmacy automation equipment
  • Pharmacy services, such as compounding


  1. Have SOPs in place
  2. Training required for SOPs

Laws of Interest

  1. HIPAA
  2. FCA
  3. Anti-Kickback
  4. Advertising and coupons


Audit the pharmacy

  • All prescriptions have valid prescriptions
  • Billing concerns

Some recommended clauses

  1. Indemnification
    1. Stock purchase v asset purchase
      1. License use/continuation of contracts
  2. Ownership of issues like name etc
    1. State v area of focus
  3. Non Compete/ Non Disparagement
  4. Likely involves some amount of employment by previous owner

Deal Exhaustion is a real thing!!

Darshan Kulkarni, Pharm.D, MS, Esq.
The Kulkarni Law Firm

2929 Arch Street, Suite 1700
Philadelphia, PA 19104
Office Number: 215-948-8183
Twitter: @FDALawyers