Drug Companies have been facing many problems in conducting clinical trials in New Zealand. The value of clinical trials has also reduced in the past few years. The value of the trails was $100 million a decade but at present it ranges between b$20 - $40 million. In comparison to New Zealand, phase I-IV trials undertaken in Australia are worth $450 million a year in direct foreign investment.

The matter requires serious concern as it is very significant for the drug industry. Experts suggest that building of skilled health research base and international linkages with drug Companies may help in overcoming the problems.

Medical Director for the New Zealand arm of major drug Company Roche, Jan Campbell says that drug Companies in the country face frustrations in undertaking clinical trials. The government has no national health research action plan.

Campbell added that New Zealand really needs to focus on an area of health research and invest in it. Such practices will draw the interest of drug Companies when they will pant to conduct their clinical trials.

New Zealand is quiet suitable for clinical trials in the area of immunology and treatments related to the central nervous system. Campbell suggested that with the new action plans and government's support New Zealand could become a global leader in the research of metabolic diseases.