Pharmaceuticals play a vital role in the health system. Policymakers need to balance access for new medicines while providing the right incentives to industry and acknowledging that health care budgets are limited. After inpatient and outpatient care, pharmaceuticals represent the third largest expenditure item of health care spending; accounting for more than a sixth (16%) of health expenditure on average across OECD countries in 2015 (not taking into account spending on pharmaceuticals in hospitals).