A pharmaceutical composition to treat osteoarthritis is provided. The pharmaceutical composition is in the form of micro-emulsion, including at one or more of an active ingredients. The active ingredient includes one "or more of herbs mixed with an aqueous phase along with one or "more of a surfactant and one or more of a cosurfactant. The micrbemulsion is loaded in aloe vera based hydrogel making it suitable for transdermal delivery of active ingredients.