Why big pharma loves Puerto Rico: Inside the island’s $50 billion pharma legacy

For over 50 years, Puerto Rico has been a powerhouse in pharmaceutical manufacturing, earning its reputation as “the Medicine Cabinet of the U.S.” Home to four of the world’s top ten pharmaceutical companies, the island contributes an impressive $50+ billion in annual pharmaceutical exports, supplying critical medications to both U.S. and international markets. Now, as the industry advances toward high-quality and cost-effective operations, Puerto Rico offers a strategic advantage for companies looking to expand.

With a skilled workforce, favorable tax incentives, and cutting-edge manufacturing facilities, Puerto Rico provides an ideal environment for pharmaceutical companies seeking to reduce costs and maintain product quality.

Puerto Rico’s scientists are at the forefront of life-changing R&D

Puerto Rico has evolved into a dynamic biotech hub that fosters innovation in biologics, regenerative medicine, and advanced therapies. Scientists are researching and developing drugs for cancer and other medical conditions that impact people everywhere. The island’s unique combination of a highly skilled workforce, strategic location, and competitive incentives has attracted industry leaders such as Amgen, AbbVie, Zimmer Biomet, and Aurobindo.

Universities and research institutions, including the University of Puerto Rico and the Ponce Health Sciences University, play a crucial role in developing the next generation of industry professionals. These institutions actively collaborate with pharmaceutical giants and emerging biotech firms to train talent in biotechnology, genomics, and biomedical sciences. The Puerto Rico Science, Technology & Research Trust (PRSRT) further strengthens these efforts by funding high-impact research initiatives, fostering startup development, and facilitating industry partnerships that drive medical advancements. Among its key initiatives is BioLeap, a PRSRT-sponsored biosciences accelerator that provides mentorship, resources, and commercialization support to advance biotech innovation within Puerto Rico’s scientific ecosystem.

Puerto Rico is pro business and pro pharma

Puerto Rico offers significant financial advantages for pharmaceutical companies, providing a pro-business environment designed to foster industry growth. As a U.S. jurisdiction, it has the same legal and regulatory framework as continental states, but it also offers unique tax incentives that help reduce operating costs. Companies engaged in eligible activities benefit from a 4% fixed corporate income tax rate, ensuring a predictable and favorable tax structure. Research and development investments can qualify for tax credits of up to 50%.

Additionally, Puerto Rico’s strategic location offers a logistical advantage for pharmaceutical exports. Its proximity to the U.S. mainland allows for faster and more efficient distribution, reducing shipping costs and ensuring timely delivery of essential medications. The island operates under the U.S. Foreign Trade Zone (FTZ) program, which provides significant cost savings by deferring or eliminating customs duties on imported materials used in pharmaceutical production. Combined with well-established trade agreements that facilitate global exports, these advantages make Puerto Rico a vital hub for pharmaceutical manufacturing.

As companies seek not only financial efficiency but also long-term resilience, sustainability has become a core component of Puerto Rico’s pharmaceutical sector. Many manufacturers are adopting renewable energy solutions, innovative waste management, and water conservation practices. Leaders such as AstraZeneca and Amgen are pioneering eco-friendly initiatives that align with global sustainability goals, reinforcing Puerto Rico’s position as a forward-thinking hub where business growth and environmental responsibility go hand in hand.

Puerto Rico has the full-value chain to support big pharma

Puerto Rico’s pharmaceutical ecosystem is strengthened by a well-established network of local suppliers, distributors, and service providers that support every stage of the industry’s value chain. From research and development to FDA-compliant quality control, advanced manufacturing, and specialized logistics, the island offers a comprehensive infrastructure that enables seamless pharmaceutical operations.

This integrated supply chain includes companies like Cesar Castillo, a key logistics provider; VWR, a supplier of laboratory equipment and materials; and PharmaBioServ, a leader in regulatory compliance and quality assurance consulting for pharmaceutical manufacturers. These partners, along with a broad base of manufacturers, packaging firms, and logistics providers, ensure that global pharma leaders can efficiently scale operations while maintaining high standards of quality and regulatory compliance.

The future of pharma is in Puerto Rico

Without bioscience, society would not have critical supplies or medicine to detect, treat, and cure diseases and ailments. For decades, Puerto Rico has played an important role in advancing scientific breakthroughs. With a long-standing reputation for excellence in pharmaceutical manufacturing, Puerto Rico presents an unparalleled opportunity for pharmaceutical companies seeking to expand, optimize operations, and align with the industry’s future.

As the sector moves toward more sustainable and cost-effective solutions, Puerto Rico stands out as a strategic location — one that delivers both business and environmental benefits without compromising product safety, innovation, or global competitiveness. The island continues to invest in workforce development and infrastructure, ensuring its place as a global leader in pharmaceutical manufacturing for years to come.

Puerto Rico’s biopharma sector is poised for continued growth, with new investments and partnerships emerging regularly. Companies that establish operations on the island will not only benefit from financial and logistical advantages but also contribute to a thriving industry.

Source: http://statnews.com/sponsor/2025/02/13/why-big-pharma-loves-puerto-rico-inside-the-islands-50-billion-pharma-legacy/