A group of industry experts who attended the Puerto Rico Manufacturers Association Convention this June 2019 have agreed that Puerto Rico should begin to place less importance on the island’s tax advantages for attracting investors. Instead, all industries on the island – especially pharmaceuticals – should focus more on sustainability and quality in the supply chain.
Puerto Rico wants to support local companies that can become global players in the bioscience industry, while also helping local ventures in the middle market, supplying these companies
Manuel Laboy, DEDC & PRIDCO
Pharmaceutical companies in Puerto Rico are becoming increasingly self-sufficient throughout all the stages of the creation, sale, and delivery of their products; furthermore, companies are moving toward not only manufacturing but also research and development. An increasing number of companies, such as Romark Pharmaceutical are conducting clinical research and studies in Puerto Rico, something that many companies prefer to outsource abroad.
It is becoming clear that a new pharmaceutical model is emerging in Puerto Rico in which companies are finding their niche for growth in research and development rather than manufacturing. These companies are more focused on quality rather than on tax incentives. Franco Negrón, president of Commercial Operations at Pharma Services Group, said that most companies have tax experts that are able to find ways to reduce their tax burden. For that reason, tax credits and incentives should not be the only thing Puerto Rico must focus on offering.
According to Manuel Laboy, secretary of Puerto Rico’s Department of Economic Development and Commerce (DEDC), Puerto Rico has demonstrated a commitment to supporting the pharmaceutical and biotech industries on the island, with its three-fold strategy of attracting new companies, retaining existing companies, and growing the supplier industry.
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