Drug research and development in New Zealand

Taking a sample from a test tube

16 Nov 2023

An increasing number of countries are now outsourcing their research and development (R&D) in pharmaceuticals to other countries. Instead of focusing on in-house development, companies in the industry are making alliances with smaller companies with biomedical research capital to have access to special compounds or drugs that they would otherwise not have access to. Consequently, certain countries are capitalising on this opportunity by effectively developing in-demand drugs to export. Successful drug developments can lead to increased wealth, employment and international trade, but there are significant barriers to establishing a successful R&D industry including high costs, competition, high knowledge capital and uncertain economic benefits. Currently, New Zealand (NZ) is well-positioned to accelerate drug development; NZ has invested in research, development and science, encouraging innovation and entrepreneurship, a Western-aligned culture in the Asia-Pacific. NZ earns significant foreign revenue from the clinical trials industry. It is estimated that NZ makes over 100 million dollars a year from clinical trials.

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Key issues

HEALTH SERVICES AND SYSTEMS

Covering developments in the provision, funding and organisation of health care services.

EQUITY

Exploring the impacts of the health system on minorities within the population, notably including Māori, Pacifica, Asians and LGBTQI.

DRUGS, DEVICE AND DIAGNOSTICS

Covering prescription medicines and medical devices.

PUBLIC HEALTH

Focusing on efforts to promote health and prevent disease through social and economic interventions.

DIGITAL HEALTH

Exploring the potential digital transformation to provide a more connected and accessible health system.

TE TIRITI

Monitoring how the health reforms and the performance of the health sector uphold Te Tiriti obligations.