Page 36 - P4304.1-V115 PS Magazine November 2025

What this means

• Sub-£1 Cat M items barely contribute: ~10p profit per item after clawback, even with
a 25% discount off DT price

• The ≥£1 Cat M items perform better (~67p per item), but the sizeable 20.7% share under
£1 drags the overall Cat M average down to ~56p per item.

• Because Cat M dominates dispensing volume, this low return from a fifth of lines dilutes
overall profitability, making reliance on Cat C discounts essential to keep the practice
in the black.
Now let’s look at the top prescribed generics in 2024/25. The table below illustrates what I am
trying to get over. I have even added in a 50% generic discount off DT price

Drug Tariff Entry Cat DT Price Net Net
(£) Margin Margin
(25% (50%
Disc) (£) Disc) (£)
Atorvastatin Atorvastatin 20mg tablets M 0.62 0.09 0.24

Amlodipine Amlodipine 5mg tablets M 0.59 0.08 0.23

Lansoprazole Lansoprazole 15mg gastro- M 0.76 0.11 0.30
resistant capsules
Omeprazole Omeprazole 20mg gastro- M 0.81 0.11 0.31
resistant capsules
Ramipril Ramipril 10mg capsules M 1.23 0.17 0.48

Levothyroxine sodium Levothyroxine sodium M 0.61 0.08 0.24
50microgram tablets
Bisoprolol fumarate Bisoprolol 5mg tablets M 0.86 0.12 0.33
Colecalciferol Colecalciferol A 6.20 0.86 2.41
800unit tablets
Metformin hydrochloride Metformin 500mg tablets M 0.58 0.08 0.23
Sertraline hydrochloride Sertraline 100mg tablets M 0.99 0.14 0.38

• At 25% discount, Cat M items make pennies per prescription which is regardless of how
good a generic price you buy at.
• At 50% discount, margins roughly triple, but still remain under £0.50 per item for most
Cat M drugs.
• Colecalciferol (Cat A) stands out, generating £2.41 profit per item at 50% discount and
of course this is where your opportunity lies as there are many discounted brands available
so you need to do your research.
What I am getting at here, is that whilst you need and want to make margin on your fastest
moving lines they really generate very little income on reimbursement and if it weren’t for the
dispensing fee then you would not be able to afford to dispense them.

You must focus on Cat C and brands as Cat C manufacturer discounts are the most viable
route to protect margin.

36 Buy direct online at PSUK.co.uk

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