Shares in CVS (CVSG:AIM) rose after the Competition and Markets Authority (CMA) finally concluded its veterinary services market investigation. The competition watchdog launched its probe to address weak competition and soaring prices in the UK’s £6.7 billion-plus vets sector.
There was relief among CVS investors, and shareholders in Pets at Home (PETS), as the CMA’s final decision did not introduce new remedies beyond those announced in its provisional decision.
Certainty at last
CVS is the AIM-listed veterinary services provider operating in the UK and Australia.
The company ‘welcomes the certainty that this morning’s announcement brings after more than two and half years of CMA scrutiny.’
Set to come into force later this year, the CMA’s reforms should help pet owners better navigate the veterinary market.
The regulator amended its proposed prescription fee cap following feedback from CVS and the veterinary profession.
The cap is now set at £21 including VAT for the first drug prescribed. An additional £12.50 is allowed for each subsequent drug prescribed simultaneously.
Veterinary practices will have to publish price lists for their services. And a price comparison website will be introduced to help boost competition and drive down prices.
Vets will also have to reveal if they are part of a large group. This is to allay concerns over the opaque ownership of practices.
Holding vets to account
Martin Coleman, chair of the independent Inquiry Group, said: ‘Too often, people are left in the dark about who owns their practice, treatment options and prices – even when facing bills running into thousands of pounds.
‘Our measures mean it will be made clear to pet owners which practices are part of large groups, which are charging higher prices.’
Coleman continued: ‘And for the first time, vet businesses will be held to account by an independent regulator.’
Workable remedies
CVS is pleased to see that the CMA had ‘considered our and the veterinary profession’s feedback in amending the proposed fee cap on prescriptions’.
The company added: ‘Whilst we continue to believe that some of these remedies are not fully justified, we are comfortable with them and believe they are workable.’
CVS pointed out its already complies with many remedies. It is also ‘well advanced in complying with others, with price lists published on our practice websites in late 2025 and 117 CVS UK companion animal practices already jointly branded.’
Roughly 60% of UK households own a pet, so the CMA felt duty bound to intervene in the market. Its reforms will be helpful to consumers grappling with a cost-of-living crisis.
Being tamer than feared, the remedies should also prove manageable for CVS and UK pet care leader Pets at Home.
Read the CMA press release here: https://www.gov.uk/government/news/cma-concludes-market-investigation-with-major-reforms-to-veterinary-sector
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