This paper is concerned with describing and explaining some key structural characteristics of Australian pharmaceutical markets and their associated supply chains. It begins with an overview of the three commercial sectors involved in the
supply of medicines to patients: (i) the pharmacists who are the retail outlet for consumers, (ii) the wholesalers that are typically used by suppliers to distribute medicines and (iii) the companies that provide the medicines, either as manufacturers or importers or both. Each sector is described in terms of its relative size, concentration and involvement with the Pharmaceutical Benefits Scheme (PBS).