There are important differences in the markets for medicines in countries in Asia and the Pacific in this study. These are mainly due to the political, financial and regulatory environments as well as characteristics of the pharmaceutical manufacturing industry. However, all countries face the test of transition brought about by demographic changes, shifting epidemiological trends and increasing inequities, among others. As with other regions of the world, a characteristic of lower- and upper-middle-income countries is that pharmaceuticals account for a high proportion of health expenditures. Medicines account for a larger share of the health budgets in resource-constrained countries.