It's thought the treatment of children's skin infections with an antibiotic ointment is helping the spread of hospital superbugs.
The use of fusidic acid to treat golden staph is believed to be behind the emergence of a drug-resistant strain of MRSA.
Otago University's Dr Deborah Williamson, who will present her findings today, says it's being driven by New Zealand's high rate of the disease.
"We have, according to published literature, the second highest rates of fusidic acid resistance in the world, second only to Greece."
She says MRSA is becoming more and more prominent in New Zealand.
"We feel very strongly that urgent restrictions are required to curb the high rates of fusidic acid resistance in New Zealand."
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