Puerto Rico: The Emerging Biotech Manufacturing Hub
Puerto Rico, known for decades as a major U.S. manufacturing hub for Big Pharma, is now attracting smaller biotech companies looking for facilities, financial incentives, and talent on the island. With high tariffs affecting manufacturing hubs in countries like India and China, more companies are investing in U.S. facilities, and Puerto Rico offers affordable infrastructure and skilled talent.
The island has been home to manufacturing operations for pharma giants such as Johnson & Johnson, Eli Lilly, Amgen, and Bristol Myers Squibb. It exports over $50 billion in life sciences products annually to more than 120 countries. According to Ella Woger-Nieves, CEO of Invest Puerto Rico, the island provides a cost-effective structure and access to highly skilled talent, making it an attractive option for companies looking to reshore to U.S. soil.
In addition to its manufacturing capabilities, Puerto Rico is also building a reputation for innovation in biopharma. With expertise in biological manufacturing, the island is equipped to handle the production of complex drugs like gene and cell therapies. This, combined with financial incentives and tax breaks, makes Puerto Rico a favorable location for the biotech industry.
One example of Puerto Rico’s emergence as a biotech hub is CytoImmune Therapeutics, a cell therapy biotech company. CEO Jose Vidal, a former executive at Amgen, has built the company from a small preclinical lab to a fully operational clinical development now entering phase 2 with a treatment for lung cancer based on natural killer cells. Vidal has brought back many Puerto Rican professionals who had left the island, leveraging their expertise in genetic engineering and drug development.
CytoImmune specializes in allogeneic cell therapies, which are “off the shelf” treatments. The company had to build infrastructure for local clinical trials, as the technology for genetically engineering cells was not initially available on the island. Despite challenges in financing, Puerto Rico’s incentives and capital opportunities have attracted businesses in the life sciences sector.
The island offers up to 50% in R&D tax credits and has a network of life sciences businesses ranging from drugmakers to logistics providers. With a history of managing a significant volume for U.S. consumption, Puerto Rico presents a unique opportunity for companies to invest and contribute to its growing biotech industry.
In conclusion, Puerto Rico’s transition from a traditional manufacturing hub to an emerging biotech hub showcases its potential as a center for innovation and growth in the life sciences sector. With its skilled workforce, infrastructure, and financial incentives, the island is poised to attract more biotech companies seeking a strategic location for research and development.
