The sector will see a reduction in reimbursement of approximately £34m per quarter based on analysis of the Category M price list for January 2025, Community Pharmacy England (CPE) has warned.

While a reduction would normally be expected following over-delivery of margin in the previous quarter, CPE argued that enacting it now was 'inappropriate' given that contract negotiations for 2024/25 remain unresolved.

Further reductions will be 'impossible to absorb' for community pharmacies in England already under 'unsustainable financial pressures', CPE added.

And it warned that pushing medicines costs down could exacerbate supply issues and put patients’ access to medicines 'at risk'.

In a statement issued last week (23 December), CPE said it was 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,' the negotiator added.

CPE said it had argued against the reduction, which includes a margin adjustment of -£17.9m informed by the latest results from the margin survey of independent pharmacies, an adjustment to reflect movements in the underlying market and entry of new generic medicines into Category M.

But the matter 'was ultimately referred to ministers, who determined that a margin adjustment would be applied to the January Drug Tariff', the negotiator said.

Paul Rees, chief executive of the National Pharmacy Association (NPA) said the reduction in community pharmacy reimbursement was 'the latest reminder of the unjust structure of the current contractual framework, which makes it almost impossible for pharmacies to plan for the future or invest in service improvements'.

'This move is especially painful for independents, who can’t spread financial risk across a large number of contracts,' he added.

A spokesperson for the Independent Pharmacies Association (IPA) said the situation was 'unacceptable'.

And they noted that the reimbursement reductions were also affecting medicines Categories A and C.

In response to the concerns raised by the sector, a spokesperson for the Department of Health and Social Care (DHSC) said: 'Community pharmacy has a vital role to play as we shift the focus of the NHS out of hospitals and into the community, through our 10 Year Health Plan.

'Unfortunately, we inherited a system that has been neglected for too long and isn’t supporting the pharmacists we need to deliver for patients at a local level.

'We will shortly be resuming our consultation with Community Pharmacy England regarding the funding arrangements for 2024/25.'