New Zealand: would a pharmaceutical company do well?

researching, developing new drugs to be used in the treatment of cancer..
things to consider: standards, educated workforce, safety, stable gov't

Kenya: does coffee grow well there? i dont think so, so how would a men's shirt manufacturer thrive in its stead?

Answer:
New Zealand lacks the right infrastructure to be a successful pharma player. While you are correct that it is a safe, stable country with an educated workforce, there are at least 10 other countries that offer everything New Zealand does PLUS they have a favorable environment for pharmaceuticals.

Shortcomings for New Zealand: First, their pricing environment is not favorable to the industry and they demand deep discounts that make drug sales less profitable there. It's also too small a market for the industry to worry too much about. Second, India and China are now sophisticated enough that their research facilities are FDA-worthy, while their work force is considerably more productive. New Zealand would likely have to import much of the experienced talent required. Finally, any drug developed would require a partnership with a major pharma company to market and sell it. The distance from any potential partner in Japan, Europe or the US, while not a deal-breaker, would be a considerable barrier to success of the relationship.

While any one of these three barriers on their own can be overcome, I would put New Zealand far down a list of good markets in which to have a pharma start-up.

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