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New Zealand’s Drug Development Industry

Author

Listed:
  • Michelle Marie Lockhart

    (School of Pharmacy, Faculty of Medicine and Health Sciences, University of Auckland, Private Bag 92019, Auckland 1010, New Zealand)

  • Zaheer-Ud-Din Babar

    (School of Pharmacy, Faculty of Medicine and Health Sciences, University of Auckland, Private Bag 92019, Auckland 1010, New Zealand)

  • Christopher Carswell

    (Springer Healthcare, Auckland 0632, New Zealand)

  • Sanjay Garg

    (School of Pharmacy and Medical Sciences, University of South Australia, Adelaide SA 5001, Australia)

Abstract

The pharmaceutical industry’s profitability depends on identifying and successfully developing new drug candidates while trying to contain the increasing costs of drug development. It is actively searching for new sources of innovative compounds and for mechanisms to reduce the enormous costs of developing new drug candidates. There is an opportunity for academia to further develop as a source of drug discovery. The rising levels of industry outsourcing also provide prospects for organisations that can reduce the costs of drug development. We explored the potential returns to New Zealand (NZ) from its drug discovery expertise by assuming a drug development candidate is out-licensed without clinical data and has anticipated peak global sales of $350 million. We also estimated the revenue from NZ’s clinical research industry based on a standard per participant payment to study sites and the number of industry-sponsored clinical trials approved each year. Our analyses found that NZ’s clinical research industry has generated increasing foreign revenue and appropriate policy support could ensure that this continues to grow. In addition the probability-based revenue from the out-licensing of a drug development candidate could be important for NZ if provided with appropriate policy and financial support.

Suggested Citation

  • Michelle Marie Lockhart & Zaheer-Ud-Din Babar & Christopher Carswell & Sanjay Garg, 2013. "New Zealand’s Drug Development Industry," IJERPH, MDPI, vol. 10(9), pages 1-13, September.
    • Handle: RePEc:gam:jijerp:v:10:y:2013:i:9:p:4339-4351:d:28795
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    References listed on IDEAS

    as
    1. Lockhart, Michelle & Babar, Zaheer Ud-Din & Garg, Sanjay, 2010. "Evaluation of policies to support drug development in New Zealand," Health Policy, Elsevier, vol. 96(2), pages 108-117, July.
    2. Martin Hoyle, 2011. "Accounting for the Drug Life Cycle and Future Drug Prices in Cost-Effectiveness Analysis," PharmacoEconomics, Springer, vol. 29(1), pages 1-15, January.
    3. Rosenberg-Yunger, Zahava R.S. & Daar, Abdallah S. & Singer, Peter A. & Martin, Douglas K., 2008. "Healthcare sustainability and the challenges of innovation to biopharmaceuticals in Canada," Health Policy, Elsevier, vol. 87(3), pages 359-368, September.
    4. Juha Tuunainen, 2011. "High-tech hopes: policy objectives and business reality in the biopharmaceutical industry," Science and Public Policy, Oxford University Press, vol. 38(5), pages 338-348, June.
    5. Bruce Rasmussen, 2010. "Innovation and Commercialisation in the Biopharmaceutical Industry," Books, Edward Elgar Publishing, number 13680.
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    Citations

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    Cited by:

    1. Ziyuan Sun & Man Wang & Weiwei Zhang & Yanli Li & Dan Wang & Feng Dong, 2019. "How Can We Improve the Transformation Success Rate of Research Results in the Pharmaceutical Industry? The Game Theoretic Model of Technology Transfer Subjects," IJERPH, MDPI, vol. 16(9), pages 1-30, May.

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