The Drug Tariff Category M pricelist for October 2025 has been published on the NHS Business Services Authority (NHSBSA) website.
At the end of Q4 2024/25 there remains an over delivery of medicine margin of circa £124m.
Based on analysis of the Category M price list for October 2025, Community Pharmacy England estimates there will be an overall reduction in reimbursement on like-for-like Category M medicines of approximately -£77m per quarter, resulting from the combination of:
- Adjustments for underlying market price movements in the reference period April-June 2025. Of particular note is the movement in reimbursement prices of Dapagliflozin 10mg and 5mg tablets, which is reflective of the rapidly falling purchase prices of generic Dapagliflozin tablets.
- A margin adjustment of -£16.3m informed by the latest results from the margin survey of independent pharmacies
In consultation with DHSC regarding Drug Tariff reimbursement, CPE continues to stress the unsustainable financial pressures already being experienced by English pharmacy businesses, making further reductions impossible to absorb.
We remain concerned about the significant number of products being reimbursed at economically unviable prices; the NHS focus on low prices over stability of supply continues to drive disruptions in availability, leading to hundreds of products requiring emergency concession status, and putting patients’ access to medicines at risk. Further reductions in reimbursement prices will only exacerbate these issues.
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