Community pharmacy revenue is not evenly distributed across English cities. PharmSee's analysis of dispensing data from seven major urban centres reveals a pattern: cities where GP practices outnumber pharmacies tend to generate higher dispensing revenue per branch. The relationship is not perfect, but it is consistent enough to matter for anyone evaluating where to practise or invest.
The data across seven cities
| City (3-mile radius) | GP practices | Pharmacies | Ratio | Active pharm | Rev per active |
|---|---|---|---|---|---|
| Newcastle NE1 | 67 | 85 | 0.79:1 | 63 | £141,431 |
| Plymouth PL1 | 64 | 43 | 1.49:1 | 35 | £119,334 |
| Liverpool L1 | 150 | 106 | 1.42:1 | 87 | £116,291 |
| Manchester M1 | 100 | 108 | 0.93:1 | 91 | £108,550 |
| Leeds LS1 | 78 | 88 | 0.89:1 | 67 | £99,210 |
| Nottingham NG1 | 67 | 85 | 0.79:1 | 66 | £92,542 |
| London EC1A | 262 | 292 | 0.90:1 | 259 | £66,788 |
Revenue per active pharmacy ranges from £66,788 in inner London to £141,431 in Newcastle — a gap of more than £74,000 per branch.
The logic of the ratio
The GP-to-pharmacy ratio measures how many GP practices exist for each community pharmacy within a defined catchment. A ratio above 1.0 means there are more GP practices generating prescriptions than pharmacies to dispense them. A ratio below 1.0 means pharmacies outnumber GPs.
In theory, a higher ratio should mean more prescription volume per pharmacy. Liverpool (1.42:1) and Plymouth (1.49:1) have the highest ratios and sit in the upper half of the revenue table. Nottingham (0.79:1) and London (0.90:1) have lower ratios and sit in the lower half.
The Newcastle exception
Newcastle disrupts the pattern. Its GP-to-pharmacy ratio (0.79:1) is tied for the lowest in the dataset — yet its revenue per active branch (£141,431) is the highest by a wide margin. This anomaly likely reflects two factors:
First, Newcastle has the highest zero-revenue branch rate (25.9%) of any city measured. When nearly a quarter of registered pharmacies show no dispensing activity, the denominator of "active pharmacies" shrinks, pushing up the per-branch average.
Second, Newcastle's catchment includes several large, high-volume pharmacies serving dense residential areas with older, higher-prescribing populations. The demographics of the catchment — not just the GP-to-pharmacy ratio — affect how much dispensing revenue flows through each active branch.
What this means for the sector
The data suggests that pharmacy branch revenue is shaped by at least three factors: the GP-to-pharmacy ratio (supply and demand for dispensing services), the demographic profile of the local population (older populations generate more prescriptions), and the register quality (how many registered pharmacies are actually operating).
For pharmacy owners and managers considering where revenue potential is highest, the GP-to-pharmacy ratio is a useful starting indicator — but it is not the whole story. Newcastle's example shows that local demographics and register accuracy can override the ratio effect.
For policy makers, the variation raises questions about equitable distribution. London's pharmacies handle the lowest dispensing revenue per branch despite serving the largest population — a consequence of high pharmacy density rather than low demand. Whether this represents healthy competition or unsustainable oversupply depends on how much non-NHS revenue (retail, private dispensing, services) supplements the dispensing figures.
Explore the data
PharmSee's location analysis tool provides GP-to-pharmacy ratios for any English postcode. The pharmacy comparison tool allows side-by-side benchmarking of branch-level dispensing data. For salary context by region, see the salary guides.
Caveats
All revenue figures are drawn from NHSBSA quarterly dispensing data and reflect NHS dispensing income only. Retail sales, private prescriptions, and advanced services income are not captured. The 3-mile radius is measured as crow-flight distance from the city-centre postcode listed. "Active" pharmacies are those with any recorded dispensing revenue in the most recent NHSBSA quarter; zero-revenue branches are excluded from per-branch averages but may include pharmacies with data-reporting delays rather than genuine closures. The seven cities profiled are not a random sample and should not be treated as representative of all English urban areas.
Sources: NHSBSA dispensing data (latest quarterly release), NHS England dispensing contractor register, PharmSee database