Innovation is a continuous process, and appropriate incentives are needed to encourage development of the full potential of healthcare innovations including medicines. Over the lifecycle of a medicine, company sponsors pursue development of new medicinal uses for previously discovered medicines. When these are approved, they are referred to as “new indications” and are usually added to the list of approved uses for the product. However, this requires considerable investment to generate both non-clinical and, more significantly, clinical evidence to support the application for these additional indications to the regulatory authority and for approval for use in healthcare. Without appropriate incentives that make it possible for this investment to be recovered, these important extensions to the therapeutic value of a medicine may not be possible and patients will have fewer new treatment options to improve care.