Prince Henry has iodine in medicine bottle (5)
I believe the answer is:
phial
'medicine bottle' is the definition.
(I've seen this in another clue)
'prince henry has iodine' is the wordplay.
'prince' becomes 'p' (abbreviation).
'henry' becomes 'hal' (short for Henry).
'has' is an insertion indicator.
'iodine' becomes 'I' (I is the chemical symbol for iodine).
'hal' going around 'i' is 'hial'.
'p'+'hial'='PHIAL'
'in' is the link.
(Other definitions for phial that I've seen before include "Small glass bottle for perfume or medicine" , "Small bottle (containing a drug)" , "Ampoule" , "Small flask" , "little bottle" .)