CONTEXT: Health expenditures are increasing steadily worldwide and drug prices weigh heavily on those spendings. Algeria does not escape this trend. However, the Algerian reimbursement system is one of the most generous in Africa and Middle East as 90% (38 million people) of the entire population is insured, making the Algerian reimbursement system, one of the most attractive in the region. OBJECTIVES: The objective of this study was to identify and schematize the medicine pricing and reimbursement processes in Algeria, and to highlight the main criteria in payer’s decision making. METHODS: A literature review and interviews with experts from the economic committee and the drug reimbursement committee were conducted. The collected data were analysed thoroughly to schematize the processes. RESULTS: The drug pricing assessment is assured by the economic committee which makes its evaluation according to the drug’s origin, the medical benefit and the prices in benchmark countries. The generic drug price has to be at least 30% lower than the brand’s price. The drug reimbursement committee is in charge of proposing a list of registered drugs that will be reimbursed by the Social Security, and of determining the reference list price that will constitutes the maximum price on the basis of which the reimbursement will be made. This committee’s assessment is based on the analysis of the drug medical benefit and on the added medical benefit, following the French Health Authority (HAS) criteria. CONCLUSIONS:  The pricing assessment is mainly based on external reference pricing and the reimbursement on the drug medical benefit following the HAS criteria. With the Algerian epidemiological transition and the high drug costs, the assessment could be reinforced with heath economic evaluations in order to optimize health care expenditures.