A pharmacist's efforts to keep his business afloat have resulted in a significant debt of £145,000, leaving him concerned about meeting his monthly staff payroll obligations.

Tunde Olawoye's struggles are not unique, as many pharmacists in Wales are facing similar challenges due to rising costs, forcing them to sell essential items like aspirin at a loss.

According to the National Pharmacy Association, approximately 60% of pharmacy owners in Wales have resorted to remortgaging their homes or using personal savings to keep their businesses operational over the past year.

The Welsh government claims to have made substantial investments in the sector in recent years, including increased funding for core services aimed at implementing reforms.

Geoff Thomas, a pharmacist with 40 years of experience, warns that the industry is on the brink of collapse unless drastic changes are made.

Another pharmacist revealed that she purchases aspirin for £3.75 and sells it for £3.05, resulting in a financial loss.

Olawoye, 54, stated that the current situation is "not sustainable at all."

He emphasized the need for increased investment in the profession, highlighting the crucial role pharmacists play as the frontline of healthcare in the country.

Initially, Olawoye's business was performing well, but escalating costs eventually outpaced his reimbursement through the Welsh government agreement, leaving him struggling to cover overheads.

As his debt reached £145,000, he was forced to establish a repayment plan to satisfy his creditors.

Olawoye considered selling his business in New Quay, Ceredigion, but realized the sale proceeds would be insufficient to cover his bank loans.

He described the daily challenges he faces, saying, "These are the difficulties we deal with every day."

Olawoye has decided not to sell his business at a loss and is instead exploring ways to make it profitable again.

In Wales, community pharmacies are primarily funded through the Community Pharmacy Contractual Framework, which covers various costs, including dispensing fees and operational expenses.

The framework involves an agreement between pharmacy owners and the Welsh government, outlining the reimbursement amount for services such as dispensing, professional fees, and clinical services.

A 4% increase in the framework was announced in November 2025, bringing the total annual funding to £182m.

However, pharmacy owners argue that this increase is insufficient, as the funding has not kept pace with rising costs over the past decade.

The challenges faced by pharmacists in Wales are not unique, as analysis has shown that England's pharmacy network has shrunk to its smallest size in 20 years due to closures.

Pharmacy services in Northern Ireland were also reported to be "at breaking point" last year due to funding difficulties.

Gwawr Jones, a pharmacist from Barry, Vale of Glamorgan, stated that her costs have increased significantly, driven by inflation and rising drug prices, while funding remains stagnant.

Jones pays £3.75 for 75mg of aspirin but can only sell it for £3.05 due to the funding agreement, resulting in a loss of 70p per box.

She noted that pharmacies may receive a drug concession at the end of the month, increasing the reimbursement cost, but this is only known after dispensing several hundred boxes to patients.

Jones described the November funding increase as insufficient, saying it "has not even touched the sides."

She finds running a pharmacy in Rhoose "impossible" in the current financial climate, the worst she has seen in 26 years.

Jones cited increases in the national living wage, national insurance, energy costs, and fuel costs as additional pressures on the industry.

She acknowledged that other industries face similar challenges but noted that the pharmacy sector's reliance on NHS income through the Welsh government makes it difficult for owners to find a solution.

Jones estimated a £40m shortfall due to contract payments not keeping pace with pharmacy inflation, placing a significant burden on owners to keep pharmacies operational.

Thomas, who has worked in the industry for 40 years, warned of increasing peril in the sector.

He believes that Wales is "heading off a cliff" unless significant changes are made to address the challenges faced by pharmacists.

Thomas explained that pharmacies are forced to purchase drugs at a higher cost than they can be reimbursed for, leaving little margin for staff salaries, deliveries, and other expenses.

He noted that pharmacies are becoming busier as GPs direct patients to them to alleviate pressure on the health service, but this increased workload is not matched by adequate funding.

Thomas stated that the current reimbursement structure has not changed, despite the growing demands on pharmacies.

He expressed his desire to provide services and care for patients but emphasized that the current situation is unsustainable.

Thomas admitted that he is currently focused on "keeping the show on the road" but acknowledged that this cannot continue indefinitely.

He revealed that he took out a short-term loan of £70,000 last September to cover expenses for the month.

Thomas emphasized the need for urgent action to address the challenges faced by pharmacists in Wales.

He warned that the consequences of inaction would be severe, with potential closures of pharmacies and reduced access to healthcare services.

Thomas called for a comprehensive review of the funding structure and reimbursement rates to ensure the long-term sustainability of the pharmacy sector.

He urged policymakers to recognize the critical role pharmacists play in the healthcare system and to provide adequate support to ensure their continued operation.

Thomas concluded that the future of community pharmacies in Wales depends on prompt and effective action to address the current challenges and ensure the sector's viability.

After over 20 years at the helm, the owner of this establishment is now indebted to the bank for an amount exceeding twice the original purchase price of the pharmacy.

The NPA has recently published its latest set of statistics, which are based on a survey of its members in Wales.

The data reveals that in 2025, nearly 40% of Welsh pharmacies were operating at a loss, leaving them in a precarious financial situation.

According to David Thomas, a Welsh board member, the survey's findings should serve as a warning to the Welsh government.

Thomas stated that it is unreasonable to expect pharmacy owners to resort to remortgaging their homes and depleting their retirement savings to cover prescription costs and keep their businesses afloat for the sake of their patients.

The Welsh government has acknowledged the vital role that community pharmacies play in primary care.

A government spokesperson noted that funding for community pharmacies has increased by more than £40m since the reforms began in 2017.

This increase includes above-inflation rises in recurrent funding over the past two years, as well as a £6m stability payment to address specific cost pressures and over £1m in grants to support premises improvements at more than 100 pharmacies across Wales.

The spokesperson also explained that the reimbursement amount for medicines dispensed by pharmacies is determined through consultation with industry representatives, using data on the prices paid to suppliers.

The government stated that pharmacies generally receive higher reimbursement rates from the NHS than they pay to suppliers, allowing them to maintain a profit margin.

Although some medicines may be reimbursed at a rate below their cost on occasion, this is typically offset by the profits generated from the majority of medicines that pharmacies dispense.