New Zealand Pharmaceuticals and Healthcare Report Q3 2012

New Zealand Pharmaceuticals and Healthcare Report Q3
2012

Published: May 2012 No. of Pages: 67 Price: US $ 1175




New Zealand's pharmaceutical regulatory regime continues to be of major concern for multinationals. For
example, according to the Pharmaceutical Research and Manufacturers of America (PhRMA)'s Special
301 Submission for 2012 requested that New Zealand be placed on the Priority Watch List, citing issues
such as transparency, fairness and predictability of the state pricing and reimbursement regime, and the
overall climate for innovative medicines in the country. Such issues, coupled with small population, will
continue to sideline New Zealand in terms of both innovative drug launches and pharmaceutical industry
investment into research and development (R&D). Headline Expenditure Forecasts

Pharmaceuticals: NZD1.35bn (US$1.07bn) in 2011 to NZD1.37bn (US$1.01bn) in 2012; +1.6% in local
currency and -5.1% in US dollar terms. Forecast lower than in Q212 due to macroeconomic factors.

Healthcare: NZD19.37bn (US$15.31bn) in 2011 to NZD20.08bn (US$14.83bn) in 2012; +3.7% in local
currency and -3.1% in US dollar terms. Forecast lower than in Q212 due to macroeconomic factors.

Medical Devices: NZD814mn (US$644mn) in 2011 to NZD833mn (US$615mn) in 2012; +2.3% in local
currency and -4.4% in US dollar terms. Forecast lower than in Q212 due to macroeconomic factors.
Risk/Reward Rating: New Zealand's score increased from 53.9 in the Q212 to 54.4 in BMI's Q312
Pharmaceutical Risk/Reward Ratings (RRRs). The change means that New Zealand now ranks ninth -
up from tenth previously - within the Asia Pacific matrix that ranks 18 key markets. New Zealand's smal
population and the focus on pharmaceutical cost containment will continue to hamper commercial
opportunities for pharmaceutical manufacturers, despite a predictable business environment.

Key Trends & Developments In March 2012, the country's Pharmaceutical Management Agency
(PHARMAC) in New Zealand, which is in charge of reimbursement decisions, reached an agreement with
GlaxoSmithKline (GSK) to provide funds for two new orally administered cancer treatments, namely
Tykerb (lapatinib) and Votrient (pazopanib). The treatments will be funded as substitutes for the
treatments that are already funded by PHARMAC, namely Herceptin (trastuzumab) and Sutent (sunitinib).

The growing gap in healthcare access between rich and poor people in New Zealand has been examined
in The Lancet medical journal. The article, published in March 2012, urged the government to take
appropriate measures to control the growing rate of infectious diseases in the country. In the meantime,
Prime Minister John Key said the health gap is a broad social issue that must be addressed urgently.

Pharmaceuticals and Healthcare Report of New Zealand Q3 2012
Table of Contents
Executive Summary . 5
SWOT Analysis . 7
New Zealand Pharmaceuticals & Healthcare Industry SWOT . 7
New Zealand Political SWOT 8
New Zealand Economic SWOT .. 9
New Zealand Business Environment SWOT . 10
Risk/Reward Ratings .. 11

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Pharmaceuticals Risk/Reward Ratings 11
Rewards ... 12
Risks 12
New Zealand - Market Summary .. 14
Regulatory Regime . 15
Intellectual Property Protection .. 15
Pricing And Reimbursement 16
Reimbursement Funding .. 18
The Year Ending June 2010 .. 21
Recent Regulatory Developments 21
Industry Developments.. 23
Epidemiology ... 23
Healthcare Sector 24
Research and Development (R&D) .. 25
Clinical Trials Sector ... 25
Medical Devices... 27
Medical Devices Classes In New Zealand 27
Industry Forecast Scenario ... 29
Pharmaceutical Market Forecast 29
Healthcare Market Forecast 31
Key Growth Factors - Macroeconomic Forecast 34
NEW ZEALAND - ECONOMIC ACTIVITY . 39
Prescription Drug Market Forecast . 40
Patented Drug Market Forecast .. 41
Generic Drug Market Forecast 43
OTC Drug Market Forecast . 44
Pharmaceutical Trade Forecast 45
Medical Device Market Forecast . 47
Other Healthcare Data 48
Key Risks To BMI's Forecast Scenario . 49
Competitive Landscape . 50
Pharmaceutical Industry .. 50
Company Developments... 50
Pharmaceutical Distribution 52
Company Profiles ... 53
Douglas Pharmaceuticals 53
New Zealand Pharmaceuticals 55
Demographic Outlook 57
NEW ZEALAND - Population By Age Group .. 58
NEW ZEALAND - Population By Age Group .. 58
NEW ZEALAND - Key Population Ratios ... 59
NEW ZEALAND - Rural and Urban Population . 60
Glossary .. 61
BMI Methodology ... 63
How We Generate Our Pharmaceutical Industry Forecasts 63
Risk/Reward Ratings Methodology .. 64
Ratings Overview . 64
Weighting . 66

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