Drug Pricing
September 24, 2026
8 min

UK Drug Tariff and dm+d explained for European pricing teams

The two British reference artefacts, what a basic price actually represents, and why the UK is a reference market for both the Netherlands and Switzerland.

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Table of contents
    Summary
    • The Drug Tariff sets out what community pharmacy is paid. It is produced monthly by the NHS Business Services Authority on behalf of the health department.
    • Part VIIIA carries basic prices for generics in categories. Category M prices rest on wholesaler data submitted under the Health Service Products regulations of 2018.
    • dm+d is an identification resource rather than a price list, with a five level model separating virtual from actual products and packs.
    • Releases of dm+d and its supplementary items appear every Monday through the national terminology service, under item specific licences and an account.
    • The XML distribution includes a mapping between the actual medicinal product pack and the GTIN, which most European price sources do not provide.

    The United Kingdom publishes more usable pharmaceutical reference data than most European countries and sits outside the European Economic Area, which puts it in an odd position for a European pricing team: highly relevant as a reference market, and outside the regulatory frame that governs the rest. This article looks at the two artefacts that matter, the Drug Tariff and the dictionary of medicines and devices, and at why the Netherlands makes British prices a Dutch problem.

    Two separate things, often conflated

    The Drug Tariff is the monthly publication that sets out what community pharmacy is paid. It is produced by the NHS Business Services Authority on behalf of the health department, and the electronic version is public at drugtariff.nhsbsa.nhs.uk, reachable on 14 September 2026.

    The dictionary of medicines and devices, dm+d, is the NHS standard database of prescription products, used in electronic prescribing and in prescription pricing. It is a terminology and identification resource rather than a price list.

    The two are linked: products listed in Part VIII of the Drug Tariff follow the dm+d naming convention. They answer different questions, and a dataset that treats one as a substitute for the other will be wrong in both directions.

    Part VIII and what a basic price actually is

    Part VIII of the Drug Tariff carries the basic prices of drugs, split into parts and categories. Part VIIIA lists basic prices for generics, subdivided into categories, of which Category M is the one most often discussed.

    The mechanism behind Category M is worth understanding, because it has no real equivalent in continental Europe. Those prices are based on information obtained under the Health Service Products regulations of 2018, under which wholesalers submit their pricing data to the authority.

    In other words, the published figure is derived from actual commercial data submitted under a statutory obligation, rather than from a notified list price or a regulated maximum. That is a different kind of number from an ex-factory price in Belgium or a maximum price in Norway, and it should not be dropped into a European comparison as though it were the same thing.

    What dm+d gives you, and what it costs

    dm+d is distributed through the national terminology service, with releases of the main dm+d and the supplementary items published every Monday. Access runs through an account on that service rather than as an anonymous download, and each item carries its own licence.

    The structure is a five level model: virtual therapeutic moiety, virtual medicinal product, actual medicinal product, virtual medicinal product pack and actual medicinal product pack. The distinction between the virtual and actual levels is the part that European teams usually find unfamiliar and the part that makes dm+d powerful: it separates what was prescribed conceptually from which product was actually supplied.

    For cross-border work one detail matters more than the rest. The XML distribution includes a mapping file between the actual medicinal product pack and the GTIN. That is a bridge between a national coding system and a global identifier, and it is exactly the bridge that most European price sources do not provide.

    The supplementary package adds historic code data and mapping files to other classifications, which is what makes a longitudinal analysis possible rather than only a snapshot.

    Why the UK belongs in a European dataset despite Brexit

    Three reasons, none of them sentimental.

    It is a reference country. The Dutch maximum price calculation reads Belgium, France, Norway and the United Kingdom. British price levels therefore feed into a statutory calculation inside the European Union.

    It is a reference country twice over. Switzerland's foreign price comparison also includes the United Kingdom among its nine reference markets.

    Its identification model is unusually good. The virtual and actual product levels, plus a published GTIN mapping, make British data useful as a modelling reference even for teams that never sell there.

    Against that sits the obvious limitation. The United Kingdom is not in the European Economic Area, so it is outside the regulatory frame that governs authorisation, falsified medicines safeguards and parallel distribution within the single market. A European dataset that includes British prices has to carry that distinction as a field, not as a footnote.

    The virtual and actual levels, and why they matter abroad

    Most European pharmaceutical datasets have one product level that matters, the pack, plus a loose grouping by substance. dm+d formalises the distinction that those datasets leave implicit.

    A virtual medicinal product describes a product in abstract terms: substance, strength, form. An actual medicinal product is a specific branded or generic product from a named supplier. The same split runs at pack level.

    That structure answers two questions separately. What was intended, and what was supplied. For substitution analysis, shortage management and tender work, those are different questions, and a data model that cannot separate them ends up encoding the answer to one of them as a text note.

    Any team designing a European product data model can borrow that idea without borrowing British data, and several of the recurring problems in cross-country matching become easier once the abstract level exists as a first class object rather than as a derived grouping.

    Reading the tariff without over reading it

    A Drug Tariff figure is precise about what it is and silent about everything else. It states what pharmacy is reimbursed for a product in a given month, under a defined category, in a defined part of the tariff.

    It does not state what the pharmacy paid its wholesaler, what the wholesaler paid the manufacturer, or what any contract underneath those transactions contained. The gap between reimbursement and acquisition cost is a deliberate feature of the system rather than a data quality problem, and it is the mechanism through which the system funds dispensing.

    For a cross-border comparison the honest way to use the number is as what it is: a national reimbursement figure at a stated level and month. Converted into euro and dropped into a column next to Belgian ex-factory prices, it measures two different systems and reports the difference as a price gap.

    Three traps for a European team

    Treating the Drug Tariff as a manufacturer price list. It sets out what pharmacy is paid, through a system of categories, and Category M prices in particular are derived from submitted wholesaler data. The concept does not map cleanly onto ex-factory.

    Assuming dm+d is free to take. The data is public in the sense that it is available, but it is distributed through an account based service under item specific licences. That is a registration and licence step to plan, not an anonymous download.

    Ignoring the four nations. Arrangements differ across the United Kingdom, and a figure taken from one tariff does not automatically describe the whole country. Where the distinction matters for a use case, it belongs in the data model.

    How the UK compares with the EU sources

    PropertyUnited KingdomTypical EU source
    Price conceptReimbursement to pharmacy, categories, some based on submitted wholesaler dataNotified or regulated price, often a maximum
    IdentificationFive level model with virtual and actual levelsA national pack code
    GTINMapping file publishedRare, present in Poland and Norway
    DistributionAccount based terminology service, weeklyBulk file or licence
    Regulatory frameOutside the EEAInside the single market

    The comparison shows why the United Kingdom is both attractive and awkward. The data model is the best of the group and the price concept is the least comparable.

    A checklist for UK pricing data

    1. Keep the tariff and the dictionary as separate sources with separate purposes.
    2. Record which part and category a price comes from, because the categories mean different things.
    3. Label prices derived from submitted wholesaler data as such, and do not equate them with an ex-factory price.
    4. Plan the account and licence step for the dictionary before scheduling the integration.
    5. Use the published pack to GTIN mapping as the bridge to other national datasets.
    6. Carry a field for the regulatory frame, because the United Kingdom sits outside the EEA.
    7. Where the four nations differ for your use case, model that difference explicitly.

    Conclusion

    The United Kingdom gives a European pricing team the best identification model in the region and the least transferable price concept. The dictionary of medicines and devices, with its virtual and actual product levels and its published GTIN mapping, is worth studying even for teams with no British business. The Drug Tariff is worth reading carefully and quoting precisely, because what it publishes is what pharmacy is paid, assembled category by category, and not what a manufacturer charges.

    Related reading: European Drug Pricing Database: how cross-border prices work and Pharma pricing Germany: how the system works, plus external reference pricing in Europe and Netherlands drug prices.

    pharmazie.com is the consolidated pharmaceutical data platform by DACON Datenbank Consulting GmbH that bundles 25+ specialist databases into a single search, exclusively for healthcare professionals. Price coverage focuses on the DACH region and a number of further EU countries, with more countries following in the coming months.

    Author Image
    Ursula Tschorn
    Ursula Tschorn is CEO of DACON Datenbank Consulting GmbH and has been building pharmaceutical information infrastructure since 1989. She writes on drug data standards, pricing regulation and market access in the DACH region.

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