NZ falling behind Australia in lucrative drug-testing field

Parliament's health select committee wants changes made so that New Zealand is a more attractive place for clinical trials of new drugs and medical devices.

It began an inquiry last year, and said in a report released today it had been concerned that New Zealand had lost its international advantage.

"Most submissions we received backed up this view and called for improvement," it said.

"The main elements of the system can be put right at almost no cost, and we believe the returns for New Zealand patients, the health service and the economy will be significant."

It said that 10 years ago clinical trials were generating more than $100 million a year but that had dropped to around $30m.

It wants the Government to implement within 12 months its key recommendations:

• Simplify and streamline ethical review processes;
• Promote collaboration between government departments to co-ordinate the system;
• Develop a national health research action plan to foster innovation and commercialisation; and
• Develop a framework for clinical trial research through District Health Boards.

"This inquiry has shown clearly that clinical trials are beneficial to patients, clinicians, medical scientists, innovators and workforce recruitment, as well as to the health standards in the countries in which they are carried out," the report said.

Falling behind
"Australia has a clinical trial industry with an annual value of $A450m ($NZ590m)...the significant reduction in the value of the New Zealand clinical trial industry is indicative of a weakening competitive advantage."

David Clarke, director of Cranleigh Health, was the specialist adviser to the select committee and with the Cranleigh team came up with a series of recommendations delivered to the committee in The Cranleigh Report.

Mr Clarke said it is critical New Zealand recognises it is falling behind in the clinical trials field: “Australia spends around $600 million and New Zealand’s investment has fallen from around $100 million to $45 million. Clearly we have been losing competitive advantage and not fully utilising our world-renowned scientific capabilities.”

New Zealand spends $13.8 billion on health, it has not had a national clinical research strategy. He points to Counties Manukau District Health Board’s Innovation Health Hub as a potential model for what can be achieved by district health boards. Counties Manukau has invested in significant infrastructure, he says, and now very capably runs clinical trials and develops medical devices, Mr Clarke said.

“However, if we want solutions for New Zealand’s intrinsic health problems, we also have to get big pharmaceutical and biotechnologies companies to invest here again,” he says. “If we do it will be New Zealand patients who benefit, plus it will up skill New Zealand’s R&D sector.”

Positive sign to big bio, big pharma
Dr Neil Domigan, a director and part of the Cranleigh Health team, says the select committee recommends a contestable innovative clinical trial fund be established

“This recommendation will send a positive signal to big bio and pharma that the NZ clinical trial industry is open for business,” Dr Domigan says. “Another major recommendation is streamlining of the ethics approval process for clinical trials. New Zealand has been well recognised for its rigour in the ethic process, but the process has been slow.”

The select committee wants its recommendations implemented within 12 to 18 months.