Pharma is not dead in Puerto Rico–this was the key message of Victor Merced speaking at INTERPHEX this morning as part of a presentation from the Puerto Rico Industrial Development Company (PRIDCO). There  has been some concern among US-based manufacturers that the pharma manufacturing sector’s glory days in Puerto Rico have come to an end, with many companies relocating their facilities to places such as China and India. The Puerto Rican 2010 excise tax on purchases from affiliates hasn’t helped that perspective.

However, Merced backed his case for the US jurisdiction’s hold on the life sciences with a few recent facts.  Two new manufacturing plants recently opened in Puerto Rico, three companies are working on expansion plans for their Puerto Rico facilities, and a fourth expansion is already underway. Nearly 70% of the island’s exports are tied to life sciences, and approximately one third of its annual collegiate graduates are earning degrees in science, technology, or engineering.

Plus, the endless tax credits and incentives that made the island a popular manfuacturing destination are still in place. For instance, there are credits for job creation, R&D, purchases of distressed facilities, training, and a new credit for local source qualification. Overall, Merced stressed that there are many cost-effective reasons to bring (or maintain) pharma manufacturing business to and in Puerto Rico. The year-round warm weather and beaches don’t hurt either.