Veterinary sector reform: Provisional CMA proposals focus on transparency and choice
Derren Nathan, head of equity research, Hargreaves Lansdown: “The Competition and Markets Authority’s provisional decision from the delayed investigation into the veterinary industry shouldn’t provoke too many barks and howls from the major operators. Price caps look to be limited to prescriptions with an upper limit of £16 per vet slip, around 20% below the current average.
Other measures include a regulated comparison website, comprehensive price lists, upfront cost estimates for treatment plans, and transferable prescriptions allowing pet owners to shop around for better prices online. More visible signposts on practice ownership are also in the mix, allowing better information for animal lovers who prefer to give their business to local independent providers.
The outcome is broadly as expected, but with no major negative surprises should alleviate the uncertainty that’s been weighing on consumer and investor sentiment. That’s seen a share price increase for Pets at Home, with its growing veterinary offer, and a bigger spike for CVS Group, which is more of a pure play on the industry. That said, the line under the matter has only been pencilled in so far. A further consultation is underway and a deadline for publication of the final decision has been set for March 2026.”