This report describes the involvement of Israeli and multinational pharmaceutical industries in the occupation. As the pharmaceutical industry is a highly globalized arena, the report reveals some of the ways in which Israel's occupation of Palestinian lands offers opportunities to exploit the captive Palestinian market. Concurrently, the report describes the development of a vibrant but struggling Palestinian industry. For the vast majority of the Palestinian population, this situation generates higher prices of basic health products, which is especially troubling in light of the fact that the economic situation continues to deteriorate.