The Pharmaceutical Management Agency (Pharmac) is responsible for managing the pharmaceutical budget for New Zealand's public health system. In particular, Pharmac decides which medicines will be subsidised. This has caused strained relations with research-based pharmaceutical companies wishing to supply the New Zealand market. In recent years, Pharmac seems to have had the upper hand, but a Supreme Court decision released in August and an agreement between AstraZeneca and Pharmac for the supply of two drugs, may indicate that the tide is turning.