The Ministry of Health and Welfare is responsible for pharmaceutical legislation, the provision of national pharmaceutical needs and the regulation of the pharmaceutical sector. The Pharmacy and Health Products and Establishments Unit (Àrea de Farmàcia, Productes i Establiments Sanitaris) at the ministry develops and implements regulations to ensure the quality, safety, and efficacy of imported drugs and to promote rational use of drugs. It licenses pharmacies, importing agents, distributors and manufacturers; conducts inspections; issues safety alerts; and disseminates drug information bulletins. The Ministry of Health and Welfare is in the process of establishing a drug registry that would enumerate all drugs, both foreign and national, that are authorized for sale in Andorra. There is also a plan to set up an approved drug list that would include a selection of pharmaceutical products to be financed publicly according to medical evidence and other criteria such as safety, efficacy and cost-effectiveness. Andorra is also participating in a WHO international project to standardize the quality certification of pharmaceutical products sold internationally.

Every pharmacy is managed by a pharmacist who is licensed by the government. Licenses must be issued by the Ministry of Health and Welfare. There are 54 pharmacies throughout Andorra, or an average of about 1 per 1200 inhabitants, one of the highest ratios in Europe. In 1988, the rate was much lower, with 1 pharmacy per 2072 inhabitants. Andorran pharmacies can sell approved foreign drugs, but they are obliged to trade only with those vendors that have agreements with the Ministry of Health and Welfare. For each pharmacy, the ministry maintains a "quality record" based on standards of pharmaceutical good practice. The Andorran Hospital Centre (Centre Hospitalari Andorrà, or CHA), runs its own pharmacy, which is responsible for the provision of drugs within the hospital. The hospital pharmaceutical service is also responsible for drug selection; maintaining a pharmaceutical guide in collaboration with the pharmaceutical commission; the storage of drugs necessary for the efficient functioning of the hospital; and the preparation of drugs according to patient needs. Opening hours of the pharmacies vary, while the hospital pharmacy is open 24 hours per day.

Drug consumption in 2001 was equivalent to €104.0 per capita, after having increased steadily during the previous decade. Throughout the decade, the government's share was rather constant at about 75%, corresponding to the rate of reimbursement by the Andorran Office of the Social Security (Caixa Andorrana de Seguretat Social, or CASS).

At CHA, the services that require the highest investment in terms of drug consumption are the day hospital, followed by hospitalization. Day hospital care also showed the largest increase between 1998 and 2000.