Puerto Rico’s ongoing journey from manufacturing hub to innovation enterprise – Pharma Voice

Report on Puerto Rico’s Strategic Transition to a Biotechnology and Innovation Hub

Introduction: Aligning Economic Strategy with Sustainable Development Goals

Puerto Rico is undergoing a strategic economic transformation, evolving from its long-standing role as a pharmaceutical manufacturing center to a comprehensive innovation enterprise. This transition directly supports several United Nations Sustainable Development Goals (SDGs) by fostering resilient infrastructure, promoting inclusive economic growth, and advancing global health. The island is leveraging its established industrial base to attract new biotechnology investment, thereby strengthening its economic resilience and contribution to global well-being.

Fostering Sustainable Industrialization and Innovation (SDG 9)

Puerto Rico’s evolution is a prime example of advancing SDG 9, which focuses on building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation.

Leveraging Legacy Infrastructure for Modern Biotechnology

• For over 50 years, Puerto Rico has served as a critical manufacturing hub for major pharmaceutical companies, including Johnson & Johnson, Eli Lilly, and Amgen.
• This existing, sophisticated infrastructure is now being repurposed and enhanced to support complex biological manufacturing, such as cell and gene therapies.
• By building upon its legacy, the island avoids the need for entirely new construction, promoting a more sustainable form of industrial development.

Cultivating a Hub for Research and Development (R&D)

The government and associated non-profits like Invest Puerto Rico are actively fostering an ecosystem of innovation through targeted incentives.

1. Financial Incentives: The island offers significant R&D tax credits of up to 50%, which can be leveraged or sold to attract capital for innovative projects.
2. Attracting New Ventures: Companies like CytoImmune Therapeutics are establishing clinical development operations, moving beyond manufacturing to conduct cutting-edge research on the island.
3. Building a Complete Network: The strategy aims to create a full life sciences network, encompassing everything from R&D and clinical trials to logistics and commercial manufacturing, embodying the spirit of industrial innovation.

Promoting Decent Work and Inclusive Economic Growth (SDG 8)

The expansion of the biotech sector is a significant driver for creating decent work and achieving sustainable economic growth in Puerto Rico, directly addressing the targets of SDG 8.

Human Capital Development and Talent Retention

• The initiative creates high-value jobs for a highly skilled workforce, transitioning talent from traditional manufacturing to advanced biotechnology.
• Efforts are being made to reverse brain drain, with leaders like CytoImmune’s CEO Jose Vidal successfully recruiting experienced Puerto Rican professionals to return to the island.
• This focus on local talent ensures that economic benefits are distributed within the community, promoting inclusive growth.

Economic Diversification and Resilience

By “reshoring” pharmaceutical development and manufacturing to U.S. soil, Puerto Rico strengthens its economic base against global disruptions.

• The strategy mitigates risks associated with overseas supply chains and tariffs on exports from countries like India and China.
• This creates a more stable, resilient local economy capable of sustained growth and providing productive employment for its citizens.

Advancing Good Health and Well-being (SDG 3)

Puerto Rico’s enhanced role in the life sciences sector makes a direct contribution to SDG 3 by ensuring access to essential medicines and promoting health innovation.

Enhancing Pharmaceutical Supply Chain Security

• As a reliable U.S. jurisdiction, Puerto Rico plays a pivotal role in securing the national supply of critical medicines, including advanced cell therapies.
• The island exports over $50 billion in life sciences products annually, reinforcing its position as “America’s medicine cabinet” and contributing to global health security.

Improving Local Access to Advanced Healthcare

• The establishment of local infrastructure for clinical trials provides Puerto Rico’s population of 3 million people with access to the latest medical advances.
• CytoImmune’s development of a phase 2 lung cancer treatment on the island is a key example of how this innovation directly benefits the local community’s health and well-being.

Conclusion: A Multi-faceted Strategy for Sustainable Development

Puerto Rico’s journey from a manufacturing hub to an innovation enterprise is a model of strategic development aligned with global sustainability targets. Through multi-stakeholder partnerships (SDG 17) involving government, private industry, and local talent, the island is not only securing its economic future but also making vital contributions to global health and sustainable industrialization.

SDGs Addressed in the Article

• SDG 3: Good Health and Well-being

  The article focuses on the growth of the biopharmaceutical industry in Puerto Rico, which is dedicated to developing advanced medicines, including treatments for cancer. It also touches upon improving local access to healthcare innovations.

• SDG 8: Decent Work and Economic Growth

  A central theme is the economic development of Puerto Rico through the expansion of its biotech sector. This includes attracting investment, creating high-value jobs for a skilled workforce, and diversifying the economy from traditional manufacturing to innovation-led enterprises.

• SDG 9: Industry, Innovation, and Infrastructure

  The article explicitly details Puerto Rico’s strategy to build upon its existing manufacturing infrastructure to foster a new ecosystem of industrial innovation. It highlights the importance of research and development (R&D), technological advancement, and creating a resilient domestic supply chain for the U.S.

Specific SDG Targets

1. SDG 3: Good Health and Well-being

   • Target 3.b: Support the research and development of vaccines and medicines.

     The article supports this target by highlighting the work of companies like CytoImmune Therapeutics, which is in “phase 2 with a treatment based on natural killer cells for lung cancer.” It also mentions the island’s growing capability to handle the development of “complicated drugs like gene and cell therapies.” Furthermore, it notes the need to build “infrastructure for local clinical trials, particularly for a population of 3 million people with limited access to the latest advances in healthcare.”

2. SDG 8: Decent Work and Economic Growth

   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.

     The article describes Puerto Rico’s evolution from a “major U.S. manufacturing hub” to an “innovation enterprise.” This is exemplified by the focus on advanced biotech, such as “allogeneic cell therapies” and “genetic engineering,” which represents a significant technological upgrade and a move towards a high-value-added sector.

   • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation.

     This target is addressed through the mention of government incentives designed to foster the biotech industry. The article states that “Puerto Rico is leveraging its strengths — as well as massive tax breaks and other financial incentives,” including offering “up to 50% in R&D tax credits that can be leveraged or sold.” This policy directly supports innovation and job creation for “highly skilled talent.”

3. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors… and substantially increase the number of research and development workers.

     The article directly relates to this target by discussing the creation of a unique workforce that can “transition from one thing to the other… flowing back and forth from research to commercial manufacturing.” The establishment of companies like CytoImmune, which grew from a “small preclinical lab… to a fully operational clinical development,” and the effort to attract talent back to the island demonstrate an enhancement of scientific research and technological capabilities.

   • Target 9.b: Support domestic technology development, research and innovation.

     The article highlights the “reshore to U.S. soil” strategy, positioning Puerto Rico as a hub for domestic technology development to secure America’s supply chain. The growth of local companies and the building of “infrastructure for local clinical trials” are direct examples of supporting domestic innovation and R&D capabilities.

Indicators for Measuring Progress

1. SDG 3: Good Health and Well-being

   • Implied Indicator: Number and phase of clinical trials conducted locally. The article mentions CytoImmune is “moving into phase 2 with a treatment” and the need to build “infrastructure for local clinical trials.”
   • Implied Indicator: Increased access to advanced medical treatments for the local population. The article notes the challenge of a population with “limited access to the latest advances in healthcare,” implying that progress would be measured by overcoming this limitation.

2. SDG 8: Decent Work and Economic Growth

   • Direct Indicator: Total value of exports from the life sciences sector. The article states that Puerto Rico “exports more than $50 billion in life sciences products annually.”
   • Direct Indicator: Value of financial incentives for R&D. The article specifies “up to 50% in R&D tax credits.”
   • Implied Indicator: Amount of venture capital (VC) and other investment attracted. The article mentions a goal of “driving more investment and VC now with the right teams in place.”

3. SDG 9: Industry, Innovation, and Infrastructure

   • Implied Indicator: Number of skilled R&D and manufacturing jobs created or retained. The article discusses creating a “workforce that’s unique in the world” and convincing the “Puerto Rican talent web” to “relocate back to the island.”
   • Implied Indicator: Growth in the number of biotech and life sciences companies, particularly startups and R&D labs. The article profiles CytoImmune’s growth from a “small preclinical lab” as an example of this trend.

Summary Table: SDGs, Targets, and Indicators

Source: pharmavoice.com