This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview

New Zealand’s healthcare system is largely publicly funded (approximately 85% of the total budget) and is free to New Zealand citizens. The annual budget is currently around $11.2 billion covering all items of expenditure including HR and property maintenance etc.

Due to the funding model deployed in New Zealand (whereby the government, through the Pharmac agency acts as a single-payer for selected pharmaceutical products), an opportunity is created for American pharmaceutical companies to market “on-patent” products to the entire population. Pharmac is aggressive in negotiating such contracts, both on price and contractual terms.

 

2016

2017

2018

2019 (Estimated)

Total Local Production
(Estimated)

1000

900

150

150

Total Exports

972

867

126

130

Total Imports

348

252

35.6

50

Imports from the US

61.5

38.1

0

40

Total Market Size

376

285

59.6

70

Exchange Rates

1.40

1.41

1.45

1.44

Unit: USD Million       
Source: Trade Policy Information System, Common Data Platform

Approximately 55 companies in New Zealand are estimated to be engaged in the production of pharmaceuticals or their ingredients. The high cost of developing and bringing a drug to market, compounded by the scarcity of capital in NZ, has led to the industry sector being in a stagnant state, and declining over the long term.

This translates to a small but high-value opportunity for American suppliers of new and efficacious pharmaceutical products.  

Leading Sub-Sectors

  • Oncology

  • Diabetes

  • Cardiac Care

  • Infection Control

  • Combination HIV Treatments

Opportunities

The U.S. Commercial Service maintains regular contact with the government agencies and regulators, as well as the major procurement agencies and the private insurance companies. These sustained good working relationships are enhanced through participation in annual conferences, trade missions to and from the United States and introductions to American clients visiting the market to develop opportunities particularly in the above leading sub-sectors.

Web Resources

Medsafe New Zealand:                                    
Pharmac:                                                          
healthAlliance:                                                   
Ministry of Health:                                              
Southern Cross Healthcare:                              
Stats New Zealand:

Prepared by the International Trade Administration. With its network of more than 100 offices across the United States and in more than 75 markets, the International Trade Administration of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.