A medication cassette according to the present invention includes a rotatable medication drum located between front and rear covers. The medication drum has a series of outwardly opening medication receiving cells and the front cover and the rear cover cooperate with the medication drum to close the cells. Each cell in cooperation with the covers defines a normally closed medication receiving pocket. The medication drum further includes an accessible drive arrangement for rotating the medication drum relative to the front and rear covers past a dispensing port. Medication in a cell aligned with the dispensing port passes therethrough in a dispensing step. The cassette further includes an alignment arrangement that releasably holds the medication drum against rotation until rotated by drive arrangement. Preferably this drive arrangement is a drive ring generally coaxial with a rotary axis of the medication drum. The medication cassette is cost effective to manufacture, provides security and is advantageously used with an automated dispensing apparatus.