Global trade uncertainty and evolving tariff policies are shifting how bioscience companies view their supply chains.
What once seemed like stable offshore manufacturing arrangements now carry myriad risks, forcing industry leaders to reconsider their operational strategies. Indeed, organizations are actively seeking resilient alternatives to traditional offshore manufacturing – solutions that can provide stability without sacrificing competitiveness.
While many consider mainland U.S. locations for reshoring initiatives, a strategic alternative offers the best of both worlds: complete U.S. regulatory alignment with significant cost advantages and world-class manufacturing infrastructure.
“The current global landscape presents both challenges and opportunities for bioscience companies. Those who act strategically now will emerge stronger and more resilient.” – Ella Woger-Nieves, CEO of Invest Puerto Rico
Puerto Rico's unique position as a U.S. jurisdiction
Puerto Rico delivers all the benefits of U.S. manufacturing without tariff exposure, making it an ideal solution for companies seeking to mitigate global trade risks.
As a U.S. jurisdiction, Puerto Rico offers complete FDA regulatory alignment and compliance infrastructure to ensure seamless integration with existing quality systems and regulatory pathways.
Products manufactured in Puerto Rico carry a “Made in USA” designation, which provides invaluable global market credibility that resonates with customers worldwide.
The island's manufacturing prowess is evident in the scale of global operations. Johnson & Johnson produces 10 million vials of Remicade for Crohn's disease, AbbVie manufactures 25 million syringes of Humira for rheumatoid arthritis, and Bristol Myers Squibb produces around 10 million syringes and vials of Opdivo for cancer treatments – all distributed worldwide from Puerto Rico facilities. On the medical device side, Medtronic Puerto Rico produces 90% of the world's pacemakers, while Johnson & Johnson manufactures 85% of global sutures, including Prolene Sutures and Dermabond products.
Indeed, this isn't a new venture – Puerto Rico boasts over 70 years of pharmaceutical manufacturing excellence, with 12 of the world's top 20 pharmaceutical companies, including Amgen, AbbVie, Bristol Myers Squibb, Boston Scientific, Stryker and Medtronic, among many others already operating successfully here.
According to the Bureau of Labor Statistics, Puerto Rico led U.S. exports of pharmaceutical and medicine manufacturing in 2020, accounting for 19.3% of total U.S. exports – a testament to the island's manufacturing capabilities and global reach which sees it export to 120 countries.
Competitive cost advantages
Puerto Rico offers significant cost savings compared to mainland U.S. operations without compromising quality or regulatory compliance.
The island provides substantial labor cost efficiencies through its skilled bilingual workforce, while maintaining lower operational expenses across facilities, utilities and logistics. Many pharmaceutical and medical device companies operating in Puerto Rico use the island as their global launch sites for new products, leveraging the jurisdiction's regulatory advantages and world-class logistics infrastructure. Through strategic partnerships with global logistics providers, temperature and light-sensitive materials manufactured in Puerto Rico can reach destinations as far as Japan in less than seven days.
These cost advantages extend beyond simple labor arbitrage – they represent a comprehensive operational efficiency that stems from decades of pharmaceutical manufacturing optimization and a business-friendly regulatory environment designed to support growth.
“Puerto Rico’s bioscience ecosystem is the direct result of over 70 years of global manufacturing leadership. That is one of the reasons there is expertise in so many different types of manufacturing including, most recently, Cell & Gene Therapy (CGT). It’s also the catalyst behind the workforce’s deep understanding of global compliance – drugs and therapies made in Puerto Rico are subject to more than 10 global regulatory bodies including the FDA and EMA.” – Yolanda Lassalle, CEO of LaSalle Group
World-class infrastructure and talent
Puerto Rico's bioscience ecosystem is built on an exceptional foundation of human capital and infrastructure. The island is home to over 80,000 direct and indirect pharmaceutical professionals, which is the highest concentration of pharmaceutical and medical device manufacturing professionals in the U.S.
The talent pipeline is equally impressive. Some 50% of university graduates hold STEM and health degrees, creating a talent pool of 18,000 STEM graduates annually. This workforce benefits from extensive GMP exposure through university programs and industry partnerships, with many professionals trained in cGMP (Good Manufacturing Practice) standards as set within the U.S. – this helps to ensure immediate productivity and compliance.
Advanced manufacturing facilities are supported by research centers such as the Molecular Science Research Center (MSRC), Puerto Rico's premier life sciences research laboratory. Nearly 200 FDA agents ensure regulatory compliance and quality oversight that doesn't differ from any other U.S. mainland state.
The practical results speak for themselves. CytoImmune Therapeutics exemplifies Puerto Rico's capabilities – the company went from completing building operations to first shake down with cells in just over six months, achieving clinical production within 13 months. All processes were completed on time and on budget, with half of their 50 employees sourced locally from Puerto Rico's skilled talent pool.
Organizations such as LaSalle Group play a crucial role in workforce readiness and regulatory compliance. In April of this year, the firm’s talent and workforce development arm, LaSalle TDIC, wrapped up a two-year workforce development grant to reskill, upskill and build new capabilities for over 500 Biosciences employees on topics such as supply chain, aseptic processes, leadership development and lean operations.
For over 15 years, the firm’s team of life sciences leaders and experts has been key in helping local manufacturing sites increase manufacturing capacity for new and existing products, drive operational and financial agility, and prepare manufacturing sites to meet new regulations such as Annex 1.
“Biosciences companies are navigating major changes at a fast pace – from evolving corporate strategies to meeting new global regulatory demands. Our Puerto Rico clients have deep operational expertise rooted in decades of experience. That foundation increases our speed to deploy new strategies, ways of working, and innovative tools and technologies in their sites.” – Yolanda Lassalle, CEO of LaSalle Group
Strategic incentives accelerate growth
Meanwhile, Puerto Rico's Act 60 tax incentives create compelling financial advantages for bioscience companies.
Corporate tax rates can be as low as 4% (or 1% for novel industries), while R&D activities benefit from up to 50% tax credits. Equipment purchases and job creation qualify for grants of up to 30%, and companies can access non-dilutive funding opportunities that preserve equity.
Additional benefits include 75% property tax exemptions, 100% tax exemption on capital gains and complete exemption from excise and sales taxes on raw materials and equipment. These comprehensive incentives significantly reduce total operational costs while maintaining full access to U.S. markets and regulatory frameworks.
These incentives combine with U.S. federal funding eligibility to create unprecedented capital efficiency. Companies can leverage approximately $50 billion in annual U.S. grants from agencies such as NIH, BARDA and the FDA, while simultaneously benefiting from Puerto Rico's tax advantages.
The clear choice for forward-thinking companies
For bioscience companies facing global trade uncertainties, Puerto Rico offers the stability, capability and economic advantages needed to thrive in an evolving marketplace.
Invest Puerto Rico serves as a strategic partner to facilitate this transition by providing comprehensive support from initial site selection through operational launch. Invest Puerto Rico helps navigate incentives, connect with talent resources and engage with key sector experts to help companies successfully establish themselves here.
“Puerto Rico isn't just adapting to global changes – we're positioning ourselves as the solution. For bioscience companies seeking resilience, growth and competitive advantage, Puerto Rico is the clear choice.” – Ella Woger-Nieves, CEO of Invest Puerto Rico
Ready to explore how Puerto Rico can transform your bioscience operations? Contact Invest Puerto Rico today to begin your reshoring journey.
To learn more about bioscience opportunities in Puerto Rico, visit www.investpr.org or contact our team directly.