Pharmaceutical spending is the expenditure on prescription medicines and self-medication, often referred to as over-the-counter products.

Expenditure on pharmaceuticals includes wholesale and retail margins and value-added tax. In most countries, expenditure is calculated with net spending, that is, adjusted for possible rebates payable by manufacturers, wholesalers or pharmacies. In some countries, other medical non-durable goods are also included. Pharmaceuticals consumed in hospitals and other health care settings are excluded.

This indicator is measured as a share of total health spending, in USD per capita (using economy-wide PPPs) and as a share of GDP.