The article is based on a lecture presented to the general chemical audience with the aim to describe some basic facts on pharmaceutical industry and on pharmaceutical research and development. Particular stages of drug discovery and development are explained and basic approaches to this process are mentioned, together with several case studies of either well-known or interesting drugs. Differences between research-based and generic companies are discussed and the importance of both these branches of pharmaceutical industry for the progress in medicinal chemistry as well as the health care accessibility is demonstrated.