July 2021 Category M Prices Announced

The Drug Tariff Category M pricelist for July 2021 has been published on the NHS Business Services Authority (NHSBSA) website.

The July Category M prices reflect a reduction in margin levels of approximately £34m per quarter. The £15m per quarter uplift that has been in place for the last 3 quarters to mitigate against the impact of Brexit will also be removed from the July Drug Tariff. As such the total quarterly impact on margin will be a £49m reduction, or approximately -19 pence per item on average. The underlying effect of market price movements in the reference period Jan – Mar 2021 will also be reflected in the July Drug Tariff.

PSNC has agreed the adjustments based on our analysis of margin delivery and on current projections for 2020/21. Our objectives are to ensure full delivery of agreed margin and smooth delivery as much as possible.

As always, the impact on individual pharmacies will vary depending on dispensing mix.