The Pharmaceutical Market: New Zealand

Summary

Includes 3 quarterly updated outlook reports!

New Zealand is due to create a combined regulatory system for pharmaceuticals and medical devices, through the merger of Medsafe, the current NZ regulatory body, with the Australian Therapeutic Goods Agency. This should bring New Zealand more into line with international norms, potentially saving time and money for local manufacturers and importers. Implementation has, however, been delayed more than once and is not likely before 2007.

The pharmaceutical market in New Zealand is experiencing very limited growth due to the fact that New Zealand is a relatively low-growth economy with an ageing population. The Researched Medicines Industry (RMI) argues, as do many domestic pharmaceutical companies, that this is accentuated by inadequate government funding for the sector and excessively tight reimbursement policies. Pharmac, the organisation charged with administering the budget for the national Pharmaceutical Schedule and responsible directly to the Minister for Health, counters these claims by stating that in the midst of a global downturn in the pharmaceutical industry, New Zealand has performed well and also professes to have negotiated subsidy reductions worth approximately NZ$50.7 million during 2003/04.

The pharmaceutical sector has indeed been targeted by the government as an area where large cost savings can be made. Citing large rises in spending, the government has been increasingly active in implementing measures such as increased use of generics, the introduction of single supplier tenders for public drug purchases and centralised purchasing for hospital drugs. After several rounds of legal battles, the current situation appears to remain that of an uneasy stand-off, with neither side yet adopting a conciliatory tone. In 2004, the Chairman of the RMI described the latest Pharmac Annual Review document as 'a masterly use of smoke and mirrors'.

These pharmaceutical market reports are ideal for executives wanting to understand the key drivers in pharmaceutical markets and have access to a wealth of statistical data. Each report opens with an outlook section that provides analysis of the market, 5-year market forecasts, national data projections, market outlook and key developments such as regulation, pricing/reimbursement, intellectual property, health facilities and government policy. The report also provides extensive background information, population trends, health status, health expenditure, organisation & administration, hospital services, medical personnel, healthcare development, market access information, trade data for raw materials and finished products and essential industry contacts. Included with the report are 3 free quarterly updated outlook reports, enabling you to keep up to date with market developments for a year.

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