New Zealand’s Drug Development Industry

Michelle Marie Lockhart, Zaheer-Ud-Din Babar, Christopher Carswell and Sanjay Garg
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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

IJERPH, 2013, vol. 10, issue 9, 1-13

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.

Keywords: drug development; economic benefits; New Zealand; clinical research; drug discovery (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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