Puerto Rico: A cost-effective reshoring solution for biopharma

Global supply chain disruptions and new tariff regulations are driving pharmaceutical companies to rethink where and how they manufacture critical products. As businesses seek locations that align with U.S. policy priorities, strengthen national security and ensure operational efficiency, Puerto Rico offers a distinct advantage. With the benefits of a U.S. jurisdiction, an advanced biopharma ecosystem, competitive incentives and a highly skilled workforce, the island provides a proven platform for reshoring success.

Rafael Pérez, Senior Business Development Director at Invest Puerto Rico, shares his perspective on how Puerto Rico delivers a strategic advantage for life sciences companies looking to secure supply chains, reduce costs and support the long-term resilience of the U.S. pharmaceutical sector.

What makes Puerto Rico such a strong option for pharmaceutical companies considering reshoring today?

Puerto Rico’s legacy in the biopharma industry is unmatched. Over the past 50 years, the island has built a trusted reputation in pharmaceutical manufacturing, earning the nickname “The Medicine Cabinet of the U.S.” Today, Puerto Rico remains a vital contributor to the U.S. healthcare system, producing 8 of the 15 top-selling drugs worldwide.

Companies that operate in Puerto Rico have full access to U.S. regulatory systems, IP protections and domestic markets without facing the barriers, risks and costs associated with overseas production. Operating here also comes with the benefit of Puerto Rico’s competitive cost structure, world-class infrastructure and skilled workforce.

In today’s environment, where reshoring supports both national security and supply chain resilience, Puerto Rico provides a seamless solution for companies seeking stability and strategic growth.

Beyond the operational benefits, cost is always a major factor in site selection decisions. How does Puerto Rico compare from a cost perspective to other U.S. locations?

Operational costs in Puerto Rico can be significantly lower than in many mainland U.S. hubs, making it an attractive option for companies prioritizing cost-efficiency without compromising quality. Companies based on the island can spend 30% less to hire pharmaceutical manufacturing talent than on the U.S. mainland.

In addition to lower costs, Puerto Rico’s business environment is strengthened by competitive incentive programs. Act 60 offers a 4% corporate tax rate for eligible businesses, up to a 50% tax credit on R&D expenditures and a 100% exemption on capital gains and export services. These incentives are designed to support innovation, attract investment and fuel long-term growth in industries like biopharma.

By operating in Puerto Rico, companies gain full access to U.S. markets, protections and regulations while enjoying a lower cost structure than mainland hubs. For companies evaluating reshoring strategies, Puerto Rico offers a rare opportunity to achieve operational excellence and cost-efficiency at scale.

What kind of biopharma infrastructure already exists in Puerto Rico?

Puerto Rico’s biopharma ecosystem is exceptionally well-established. The island is home to over 70 FDA-approved manufacturing facilities and fourteen of the world’s top 20 pharmaceutical companies, including AbbVie and Johnson & Johnson.

A strong network of suppliers, logistics providers and support services allow companies to scale operations quickly and efficiently. Puerto Rico’s strategic Caribbean location also enables fast, reliable shipping to U.S. and international markets.

A key recent development is the recognition of Luis Muñoz Marín International Airport (SJU) by the International Air Transport Association (IATA) as a certified hub for pharmaceutical handling. This milestone followed efforts by the Puerto Rico Life Sciences Air Cargo Community to improve cold chain operations, resulting in seven companies, including American Airlines, Prime Air Corp and Expeditors, achieving IATA’s Center of Excellence for Independent Validators (CEIV) Pharma certification.

The certification ensures that temperature-sensitive pharmaceutical products are handled according to the highest global standards, strengthening Puerto Rico’s role as a leader in biopharma logistics.

How is Puerto Rico developing the workforce needed to support biopharma growth?

Talent development is one of Puerto Rico’s strongest assets. The island has the highest proportion of STEM degrees in the U.S., and its bilingual, technically skilled workforce provides flexibility for global operations.

Recognizing the critical role of talent availability in attracting companies to the island, Puerto Rico has invested heavily in aligning education programs with industry needs. Public-private partnerships, universities and government initiatives deliver specialized training in biomanufacturing, regulatory sciences and life sciences management. Institutions like the University of Puerto Rico and the Puerto Rico Science, Technology & Research Trust are leading efforts to ensure a strong pipeline of biopharma talent.

These investments allow companies to access a highly skilled workforce capable of supporting complex manufacturing and R&D operations.

Looking ahead, what is the long-term value for companies that choose to reshore operations to Puerto Rico?

Reshoring to Puerto Rico offers far more than a short-term operational fix — it is a strategic, forward-looking decision that is beneficial to companies in the long term. Companies gain stability through a trusted U.S. jurisdiction with a proven track record in life sciences excellence, while benefiting from an environment focused on innovation, workforce development and long-term resilience.

Puerto Rico remains proactive in supporting the life sciences sector and investing in infrastructure, education and incentives to ensure companies have the resources they need to grow sustainably.

For pharmaceutical companies looking to secure U.S.-based production, strengthen supply chain security and position themselves for future success, Puerto Rico is an unmatched choice.

Learn more about reshoring opportunities in Puerto Rico at investpr.org.