Latin America has been on the radar of global biopharma companies and investors for years, but tax incentives and credits have firmly established a place for Latin American countries in the future of life science manufacturing.
Puerto Rico is already a top player in the life science manufacturing food chain. A leader in biopharmaceutical (biopharma) manufacturing, many major life sciences companies already have a presence on the island including Amgen, AstraZeneca, AbbVie, Bristol-Myers Squibb, Merck, Pfizer, and Eli Lilly, among others. According to a year-end 2015 report from Jones Lang LaSalle IP, Inc. (JLL), “more than 50% of the world’s leading pharmaceutical companies have operations in Puerto Rico, and 11 of the top 20 prescription medications sold in the US are manufactured on the island.”
Tax incentives also play a huge role in the attractiveness of Puerto Rico. The Economic Incentives for the Development of Puerto Rico Act established a legal framework of tax incentives and credits—up to 50% R&D credits on approved projects—designed to stimulate the establishment and development of a wide array of ventures, including life science manufacturing. In other words, according to the JLL report, foreign companies can “enjoy the benefits of operating within a US jurisdiction, while taking advantage of a foreign tax structure.”
As well, a leading Puerto Rican NGO, the Economic Society of Friends of Puerto Rico (SEAP), formed by prominent citizens in the business community, is dedicated to bringing more German companies to the island. The group, known as “SEAP,” is dedicated to promoting Puerto Rico among the German business community with the goal of bringing German investment to the Island.
In November of this year, Biolatam® biotechnology partnering conference will be held in Puerto Rico, and is expected to bring international executives from pharmaceutical companies; biotech companies such as health, biofuels, cosmetics, agrifood, mining; emerging and established medical technology companies; venture capital, private equity, institutional firms and business angels; as well as service related companies together to find partnering opportunities.
Click here for more information on Biolatam and how to participate.