Pharmacoeconomics is the study which includes the identification, measurement, affordability and cost analysis of the drug therapy to the health care system and society. It is involved with the process of evaluation techniques such as cost minimization analysis, cost effectiveness analysis, cost benefit analysis, and cost utilization analysis, which support identification and quantification of cost of drugs. The study of pharmacoeconomics helps us the type of the drug to be developed, estimate the cost of development, understand the effect of new therapies, to take proper decision on usage of proper developed drugs, best use of limited resources. Pharmacoeconomics categorizes costs into four types:

The measure outcomes are of four types: