Key Summary
- We have a medicines market and pharmacy contract that is fundamentally broken and in desperate need of reform: Picard
- Continued investment in both margin and medicines pricing is needed to ensure the UK remains competitive in the global market: Harrison
- Every concession represents additional workload, additional uncertainty and additional pressure on already stretched pharmacy teams: IPCN
- Since the new year, the number of concessionary prices has grown exponentially while the number of true shortages has remained stable: Samuels
The number of medicines being granted price concessions for May 2026 has surpassed the previous two record-breaking months and pharmacy sector experts, who spoke to Pharmacy Business, have expressed concerns about the its adverse effect on pharmacies and patients.
In May, price concessions were granted to 219 lines, which is higher than March (201) and April (204).
When community pharmacies cannot source a drug at or below the reimbursement price as set out in the drug tariff, the Department of Health and Social Care (DHSC) can introduce a price concession at the request of Community Pharmacy England (CPE).
While releasing the figures, the CPE had termed it as a "concerning trend" and added that it is putting more pressure on pharmacy owners and their teams, as procuring medicines has become more complex and time-consuming.
Fix pharmacy contract: Picard
The National Pharmacy Association chair, Olivier Picard, said, "Yet another month of record-breaking price concessions is deeply alarming and shows a system under immense strain.
"We have a medicines market and pharmacy contract that is fundamentally broken and in desperate need of reform.
"Pharmacies in the UK have told us they have seen significantly inflated prices for some common medicines, which far exceed the amount they will be reimbursed by the NHS, with this likely to continue as increased costs from the middle east conflict are fed through the supply chain.
"The government must step in to help pharmacies, who are at the sharp end of something that is beyond their control. Pharmacies should not have to subsidise the NHS's medicines bill.
"The government should fully cover these cost increases for pharmacies as well as mitigate the impact of any potential shortage of medicines for patients."
Supply chain stress: Harrison
Company Chemists’ Association chief executive Malcolm Harrison said, "The growing number of price concessions is an indication of the ongoing strain across the medicines supply chain.
"While the latest CPCF settlement is a step in the right direction, it does not resolve these issues. Continued investment in both margin and medicines pricing is needed to ensure the UK remains competitive in the global market and that pharmacies can remain financially viable. We also need reform to the model for distributing margin across the tariff.
"The impact of medicines supply and pricing pressures has been a key focus for the Medicines Reimbursement and Supply Group (MRSG). We were encouraged to see this work recognised by the Minister at our recent event, but further action will still be needed to address the underlying causes of medicines shortages and pricing instability.
"Community pharmacies play a vital role in patient care and access to medicines. A sustainable funding and reimbursement framework is critical if they are to continue delivering these services effectively.
“We welcome the £200 million uplift to the allowable retained margin allowance and the write-off of historic margin over-delivery. These measures will provide a small amount of relief for pharmacies who are facing significant financial pressure. However, it is worth noting that the uplift to the margin is less than the agree write off. The reality is that the ‘new’ level of funding simply matches current levels of margin and will only serve to reduce the likelihood of further clawbacks in the near future."
Reform medical reimbursement: IPCN
The Independent Pharmacy Contractors Network (IPCN) said the continued escalation in concession numbers highlights the growing difficulties pharmacies face in sourcing medicines at Drug Tariff prices and reinforces the need for meaningful reform of the medicines reimbursement system.
Independent pharmacies across England continue to absorb substantial operational pressures as pharmacy teams spend increasing amounts of time sourcing medicines, managing shortages and navigating reimbursement uncertainty whilst maintaining safe and effective patient care.
IPCN spokesperson Rifat Asghar-Hussain said, "The record number of price concessions granted in May should serve as a warning that fundamental pressures within medicines supply and reimbursement have not gone away.
"We were pleased to see the recent CPCF settlement provide much-needed financial certainty for the sector, but these figures demonstrate why margin reform must remain a key priority during the coming year.
"Independent contractors continue to carry significant financial and operational risk when medicines cannot be sourced at Drug Tariff prices. Every concession represents additional workload, additional uncertainty and additional pressure on already stretched pharmacy teams.
"The CPCF settlement has bought the sector some breathing space, but these figures demonstrate that breathing space must now be used to deliver meaningful progress on margin reform, reimbursement reform and medicines supply resilience."
The IPCN said the community pharmacy should not take on additional responsibilities like independent prescribing while continuing to face unresolved challenges around medicines supply and reimbursement.
A sustainable community pharmacy network requires both fair funding and a reimbursement system that accurately reflects the realities of medicine procurement.
The latest concession figures demonstrate why these issues cannot be viewed as separate conversations.
Fix prices monthly: Medicines UK
Mark Samuels, chief executive of Medicines UK, said “The continued record level of concessionary prices indicates a system that is no longer functioning as intended. Concessionary prices should be used as a vital lever to provide a higher, temporary reimbursement price to incentivise UK supply in a globally competitive market.
"But the sheer number of concessionary prices means that a disproportionate amount of Category M margin is going on paying these higher prices, which then makes other commonly available drugs more likely to go into concessionary status in subsequent months. Since the new year, the number of concessionary prices has grown exponentially while the number of true shortages has remained stable.
“It might be that the £200m of extra Category M margin investment following last week's community pharmacy agreement for 2026/27 will help to provide more liquidity, stabilise things and allow the number of concessionary prices to go down. But it might also be that medicine costs continue to rise due to inflation caused by the Iran War.
“Either way, we should also consider other solutions to support an embattled pricing and reimbursement mechanism that has, over two decades, delivered extraordinary value to the NHS, patients and taxpayers.
“Currently, manufacturers provide pricing data quarterly. By the time this information is reviewed and reimbursement prices are set, it can be up to five months out of date. Thus, rising drug prices may not be addressed early enough, leading to concessionary prices.
“A potential solution is for manufacturer and wholesaler data to be supplied monthly, giving the Government access to intelligence – to inform reimbursement prices – that is far closer to real-time market conditions. We want to consider this with the Government.
“Also, crucially, the Government must examine the effects of electronic buying platforms on procurement decisions, and understand what impact these platforms may have in making medicines supply more volatile and less available to patients at the first time of asking.”
