New Zealand's med tech sector continues to thrive

New Zealand has all the raw ingredients for a vibrant and successful medical technologies sector, according to the results of recent research.

The New Zealand Medical Technologies Sector Overview, commissioned by NZBIO’s medical technologies special interest group, provides the first comprehensive overview of the size, dynamics and economic contribution of New Zealand’s growing medical technologies sector.

“Conservative estimates value the current annual earning power of the medtech industry at more than $550million and reveals it employs nearly 3000 people. This inaugural report proves that medical technologies are a high margin industry and could be an important part of New Zealand’s economy, with the industry projecting a substantial growth in the coming five years,” says chair of the sector special interest group Simon Hall of Fisher & Paykel Healthcare.

“With a strong, educated workforce, access to high quality science and medicine, a history of developing products for offshore markets, good clinicians, surgeons and engineers and the ability to conduct clinical trials, New Zealand is well placed to foster this burgeoning industry,” Mr Hall says.

The report shows that:

New Zealand’s medical technology sector generated revenue of $554m in 2007/2008
Approximately 88 percent of total revenue is attributable to exports.
There are approximately 89 medical technology companies in New Zealand employing around 2840 people.
The majority of the medical technology sector comprises of surgical, healthcare supplies and instruments (16 percent) and diagnostic technologies (13 percent).
The medical technology sector currently contributes approximately $1.1 billion to the New Zealand economy (direct, indirect and induced). This is projected to reach $2.95 billion in three to five years.
New Zealand medical technology companies tend to be small to medium enterprises, with one multinational company, Fisher & Paykel Healthcare.

The report has identified that as with other technology intensive industries, access to capital is an area where medical technology firms see the need for greater support. Funding sources would also ideally recognise the length of time needed to commercialise this type of innovation, respondents said.

Other key themes and recommendations identified in the report included the need for improved access to good quality support, advice and networks, suggesting a whole of government approach to ensure appropriate infrastructure to enhance sector growth and improved support for international marketing.

The research also found that international competition is fierce and New Zealand would benefit from a dedicated programme to ensure its medical technology sector reaches its full potential.  

“The industry would like to see more support for innovation, a strengthened supply of capital, and simplified market access. The value of flow on benefits to the rest of New Zealand should not be underestimated,” NZBIO Chief Executive Bronwyn Dilley says.

The New Zealand domestic healthcare market is estimated at $800 million, representing 0.25 percent of the total global market for healthcare products, so New Zealand manufacturers of medical technologies are required to export to achieve real growth and to develop export capabilities early in their development cycle. 

“There are significant international opportunities for New Zealand’s health and medical technology companies, and this report shows that the industry is in good stead to make the most of these and continue to provide innovative solutions that meet customer needs,” says New Zealand Trade and Enterprise’s Biotechnology Sector Director Chris Boalch.

“Many New Zealand medical technology companies are already succeeding in offshore markets, and from the interest we have seen at the likes of the Medica trade show in Germany, and the Arab Health conference in Dubai in the last few months, this is set to continue.”

The global medical technologies sector was estimated to be worth US$196.8bn in 2007, an increase of 18.5% since 2005. With the world market expected to reach US$266bn by 2012, healthcare is a sector that continues to require technologies to improve patient outcomes and healthcare delivery.

Medical Technologies includes a wide range of products that are used in the diagnosis, prevention, monitoring and treatment of disease or injury. 

The New Zealand Medical Technologies Sector Overview was commissioned by NZBIO’s Medical Technologies Special Interest Group, and funded by the Foundation for Research, Science and Technology and New Zealand Trade and Enterprise. The research was undertaken by AERU at Lincoln University and Flicka Communications.

ENDS
 

© Scoop Media