A method of producing a drug coated balloon that comprises the steps of: subjecting a balloon catheter with a folded and wrapped balloon thereon to a pre-annealing step to induce a fold/wrap memory in the resulting pre-annealed balloon unfolding the pre-annealed balloon sufficiently to expose the full circumferential surface of the balloon by application of an inflation pressure that retains said fold/wrap memory applying a drug coating formulation to the unfolded balloon surface releasing pressure to relax the balloon and induce creasing along fold memory and evacuating the balloon slowly to induce refolding and rewrapping of the balloon. The method overcomes the need to use a folding apparatus to fold and wrap a drug coated balloon.
