Abstract: A packaging machine for enclosing items in a package delivers individual items, such as medicine, through a feeder that disposes the item between two strips of packaging material which are then joined together around the item by a closure member thus sealing the item in an individual package. The packaging machine demarcates upper and lower boundaries about the item such that the enclosed item may be separated from a continuously produced strand of packages. The packaging machine includes a selectively operable hole punch portion disposed adjacent the strand of packages for providing a hole in a portion of each package. The hole punch portion includes a punch driving member which is disengable responsive to unexpected resistance encountered by the punch. A cutter/stacker portion adjacent the strand of separable packages separates the strand into individual packages and stacks the packages in a removable magazine.