Page 35 - P4304.1-V115 PS Magazine November 2025

September 2025 Drug Tariff Part 8A Data –
Distribution and Average Prices

Category Number Average If we take a hypothetical situation
of lines Price (£) where a practice achieves 25%
discount off tariff price on all items
Part VIIIA Category A 430 29.89 then we could calculate a profit for

Part VIIIA Category C 2572 82.46 each item based on average prices
and an 11.18% clawback.
Part VIIIA Category M 614 4.02

Category Reimbursement (£) Purchase (£) Gross Clawback Net
Margin (11.18%) Margin
(£) (£)

Category A 29.89 22.42 7.47 3.34 4.13
Category C 82.46 61.84 20.61 9.22 11.40

Category M 4.02 3.01 1.00 0.45 0.56

• Cat M lines, even with a 25% discount, only yield ~£0.56 per item after clawback.
• Cat A lines perform slightly better (~£4.13), but remain modest.
• Cat C items, because of their higher average price, generate the strongest net return
(~£11.40 each) — reinforcing that Cat C discount optimisation is the primary profit driver.
However, again using Group Avg Net Profit
September 2025 Cat M data, 20.7% Reimbursement (£) per Item (£)
of Cat M lines are priced under £1.
If we apply a 25% supplier discount Cat M < £1 0.76 0.10
and the 11.18% clawback, the
per-item profits look like this: Cat M ≥ £1 4.87 0.67

Cat M 4.02 0.56
(weighted)

or call us on 01904 558 350 Impact of Drug Tariff Categories | PS Magazine 35

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