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Artemisinin compounds derived from the Artemisia annua plant provide the raw material for new artemisinin based combined therapies (ACT) against malaria. The purpose of this report is to present the different steps in production of these compounds from planting to harvesting, extraction, purification, chemical transformation and final formulation. Factors affecting cost are given special focus to gain better insight into ways of holding down the purchasing price. We also describe the consequences that the April 2004 decision by several international organizations (e.g. WHO and Global Fund to fight AIDS, tuberculosis and malaria) to make ACT the reference treatment for malaria has had on the supply of ACT, i.e., shortages with a sharp price increase followed by overinvestment and surpluses with a sharp price decrease. In view of these fluctuations, we discuss whether regulation is necessary and who should intervene.