The pharmacoeconomics is relatively new field in pharmaceutical science. In August, Pharmaceutical Society of Japan published “model core curriculums for pharmacy education” and pharmacoeconomics is included in it. As the Japanese health insurance system is composed of fee for service system and small patients' co-payment, physicians as well as patients have not needed pharmacoeconomic analysis. However the recent economic squeeze begin to direct their attention to the pharmacoeconomics research. The pharmacoeconomic analysis is intended to show alternatives to the decision maker for their consideration. The analyst should not impose his of her conclusion on the decision maker. The analysis must reflect the actual medical practice under the circumstances where the decision-making will be done. Pharmacists in hospitals are expected to conduct pharmacoeconomic analysis for themselves, using their hospital's data, for their decision maker, hospital manager. This article introduces some pharmacoeconomic analysis and outlines analytical measures for the economic evaluation such as cost utility analysis and cost benefit analysis.