£810 / $1295 / €985
Low growth potential in New Zealand's pharmaceutical market will attract risk-averse investors. However, we note that regulatory delays in funding new medicines will hinder patients' access to pharmaceuticals, constituting a downside risk for drug companies looking to sell their products in the country.
Headline Expenditure Forecasts
Pharmaceuticals: NZD1.35bn (US$1.07bn) in 2011 to NZD1.36bn (US$1.04bn) in 2012; +1.2% in local currency and -2.7% in US dollar terms.
Healthcare: NZD19.34bn (US$15.29bn) in 2011 to NZD19.93bn (US$15.14bn) in 2012; +3.0% in local currency and -1.0% in US dollar terms.
Medical Devices: NZD814mn (US$644mn) in 2011 to NZD832mn (US$632mn) in 20 12; +2.2% in local currency and -1.8% in US dollar terms.
Risk/Reward Rating: New Zealand was ranked 10th out of 18 pharmaceutical markets surveyed in the Asia region in Q1 13. Its score is dragged down by a low industry rewards score, due to its small and relatively low-growth potential market, and a low industry risks score because of its regulatory processes. In terms of Rewards, New Zealand is rated highly thanks to a stable economic and political environment and developed regulatory regimen.
The competitive landscape section provides comparative company analyses and rankings by US$ sales and % share of total sales - for the total pharmaceutical sector, as well as the OTC, generics, and distribution sub-sectors.