The UK Competition and Markets Authority (CMA) on Tuesday issued its final ruling on regulatory changes for the veterinary market, adopting a package of measures that largely matches the provisional decision announced in October but softens several of the regulator's earlier proposals.
Among the principal interventions, the CMA has set a prescription price cap at 21, up from an initial proposal of 16 and roughly in line with the current market average of about 20. The final decision also introduces a set of consumer protection requirements: practices must publish prices for a standard list of services, provide written cost estimates where treatment expenses are expected to exceed 500, and give customers itemised bills.
The ruling further strengthens the regulatory position of the Royal College of Veterinary Surgeons (RCVS) by expanding its powers, and updates the overall regulatory framework governing the industry. The CMA said the final measures reflect adjustments from earlier proposals, easing some obligations for larger veterinary groups.
Jefferies analysts described the decision as positive for the UK veterinary sector, saying it removes a source of uncertainty that likely held back trading activity, mergers and acquisitions, and market sentiment. The investment bank maintained a buy recommendation on Pets at Home, setting a price target of 265 pence. That target implies a 47% upside from the previous days closing price of 180.20 pence, according to Jefferies note cited in the CMA coverage.
Pets at Home operates roughly 450 stores across the United Kingdom, many of which include veterinary practices and grooming salons. The company runs 443 first-opinion veterinary practices across both in-store and standalone sites.
Jefferies valuation of Pets at Home uses a sum-of-the-parts approach: it applies a multiple of 6 times fiscal year 2027 estimates to the retail business and uses discounted cash flow analysis for the veterinary division. Those inputs produce a group valuation of .2 billion, according to the Jefferies work cited alongside the CMA decision.
Context note: The CMAs final ruling hews closely to its provisional stance while moderating several previously proposed measures. The package balances consumer-facing transparency requirements with a higher-than-proposed prescription cap, and extends regulatory oversight through the RCVS.