Discount Not Given

The list of Drugs for which discount is not deducted is a dynamic list with additions and deletions each month.

Products can be added to the list if requested by PSNC and where one or more of the following criteria apply:

Schedule 2 or 3 Controlled Drug
HazChem (product covered by the Chemical (Hazard Information and Packaging for Supply) Regulations 2002 and appropriate for Pharmaceutical Services)
Cytotoxic or cytostatic item - a list of cytotoxic products can be found in Section 8.1 of the BNF.
Cold-chain storage item (the product must be stored at 2 - 8°C prior to dispensing)
Products where all three of the following apply:

(i) the manufacturer, AAH and Unichem do not offer pharmacy contractors a discount
(ii) fewer than 500,000 items per year are dispensed of the product
(iii) average net ingredient cost per item is more than £50

Contractors only have to endorse (to indicate that no discount has been received) prescriptions for unlicensed medicines (including specials and imported drugs) obtained without discount. Prescriptions for these products should be endorsed 'DNG' (the 'ZD' endorsement will no longer be accepted).

To make a request for a product to be considered for the list or for support on this issue, please contact the PSNC Information Team (01296 432823 / info@psnc.org.uk)

Changes to the List of Items for which Discount is not Deducted (November 2008)

From November 2008 presentational changes were made to simplify and clarify the list of items for which discount is not deducted.

These changes do not affect the criteria for addition or deletion of products from the list. The list of items for which discount is not deducted now appears shorter than before but the total number of active items in the list is the same.

Change 1: Group entries

Group entries (e.g. Cytotoxic/Cytostatic items") are now listed at the front of the list, not placed within the general list. Any item that falls within one of these group entries is automatically included on the list and is an item from which discount is not deducted.

"Cold Chain Storage" is now a group entry.

Other products included in the list of items for which discount is not deducted individually rather than because they fall under a group entry are still listed individually, (subject to the way items where all strengths of a drug are in items for which discount is not deducted are presented).

Change 2: Where all strengths are items for which discount is not deducted

Where all available strengths of a medicine qualify for entry onto the list, the product is listed once and it is indicated by an "ALL" marker that for all strengths no discount shall be deducted.

If a product is available in multiple strengths and not all available strengths qualify for entry into the list, those strengths that do qualify are listed separately. If a product does not have an (ALL) marker next to it this indicates not all the drug's strengths are items for which discount is not deducted, only those individually listed.

Contractors can check the DNG status of individual items using the NHS Dictionary of Medicines & Devices.

Additions and Deletions Archive

Click on the link below to view historical information regarding the additions and deletions to the list of Drugs for which discount is not deducted including all the products removed from the list in September 2006:

Additions and deletions archive

Discount Not Given - FAQs

Click on the link below to view previously asked questions regarding the list of Drugs for which discount is not deducted.

Discount Not Given FAQs

Applying for a Product to be added to the List

Products can only be added to the lists if requested by PSNC and where one or more of following criteria apply.

Schedule 1, 2 and 3 Controlled Drugs and Cytotoxic and Cytostatic items can be found in the new list under these broad categories. As can immunoglobulins, insulins, vaccines and antisera which are all cold-chain storage items. Other products can be found in the list individually.

For Hazardous Chemicals, the product must be covered by the Chemical (Hazard Information and Packaging for Supply) Regulations 2002 and appropriate for Pharmaceutical Services). More information on the CHIP Regulations can be found on the Health and Safety Executive Website. Examples of Hazardous Chemicals that will be included on the new list are Lemon Spirit and Lavender BPC which both may be used in the preparation of extemporaneously dispensed products.

Cold-Chain Storage Items considered for the list must be stored at 2-8°C prior to dispensing. Therefore this would exclude products which only require cold-chain storage after re-constitution in the pharmacy. Information on a product's storage requirements can be found in the products Summary of Product Characteristics (SPC). The SPC for the majority of proprietary products can be found online at http://emc.medicines.org.uk/

The final category is where the following Three Criteria apply:

Please note that the Net Ingredient Cost per item is the average Net Ingredient Cost to the NHS per prescription dispensed and not the list price of the product. As the Net Ingredient Cost is based on the quantity of the product dispensed, it is also independent of product pack size. For new products, the Department of Health will give consideration to whether the product may in time meet the criteria.

Historical information on a products dispensing volume and average net ingredient cost per prescription can be found in the Prescription Cost Analysis (PCA). The most up-to-date information is for 2008. General information on statistical information that is publicly available and of interest to pharmacy is available in the NHS Statistics Section of this website.

If you are unable to obtain discount on a product that you believe should be considered for inclusion in the list of ‘drugs for which discount is not deducted', please contact the PSNC Information Team (01296 432823 / dng@psnc.org.uk). The PSNC information Team will investigate whether this product meets the new criteria and make an application to the Department of Health for the product to be listed as appropriate.

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