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Global Life Sciences Cluster Report 2011 - Jones Lang LaSalle

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Emerging cluster<br />

Puerto Rico<br />

Over the past five decades, many of the industry’s leading<br />

players have moved manufacturing operations to the island<br />

to take advantage of incentives and reduced taxes.<br />

Overview<br />

The Commonwealth of Puerto Rico has deep-seated roots<br />

in pharmaceutical and medical device manufacturing. Puerto<br />

Rico is home to more than 140 FDA, EMA and MHLWapproved<br />

pharmaceutical and device plants and produces<br />

products for distribution in the United States, European Union<br />

and Japan.<br />

Puerto Rico enjoys representation from some the industry’s<br />

largest companies, including Eli Lilly, Merck, Pfizer, Johnson<br />

& Johnson, Novartis, GlaxoSmithKline, Bristol Myers Squibb,<br />

Abbott Laboratories and AstraZeneca. Big Pharma’s presence<br />

is rooted in the offshore manufacturing sites established since<br />

the 1960s. Investment since that time has been focus on<br />

modernization, with a few high-tech labs and R&D facilities.<br />

At mid-year <strong>2011</strong>, Monsanto announced plans to construct<br />

a 20,000-sqare-foot R&D lab to replace temporary facilities<br />

with permanent ones in the southern town of Juana Diaz.<br />

The expansion is valued at $4.3 million and is expected to<br />

create nearly 50 jobs. In June <strong>2011</strong>, Legacy Pharmaceuticals<br />

announced a $34 million expansion project over the next five<br />

years at its Humacao complex, adding 300 jobs. Legacy will<br />

receive more than $1.5 million in job-creation incentives from<br />

the Puerto Rico Industrial Development Company (PRIDCO).<br />

67 Americas | <strong>Jones</strong> <strong>Lang</strong> <strong>LaSalle</strong><br />

Additionally, Merck, Sharp & Dohme, the British-based subsidiary<br />

of Merck & Co., announced a $65 million investment plan at<br />

its Barceloneta site. The company will build a new plant and<br />

employ an additional 200 people.<br />

Industry framework<br />

Innovation capacity<br />

The primary academic research institution is the University<br />

of Puerto Rico (UPR), which features multiple locations<br />

throughout the island including the UPR Medical <strong>Sciences</strong><br />

Campus in San Juan. Other academic institutions include<br />

the Ponce School of Medicine and the San Juan Bautista<br />

School of Medicine.<br />

Innovation capital<br />

One of the largest groups working to develop the island’s<br />

capabilities is the Puerto Rico Science, Technology and<br />

Research Trust. Beyond its efforts to build the territory’s<br />

talent pool and transfer technology from the workbench to<br />

the marketplace, the trust’s flagship initiative is its San Juan<br />

Knowledge Corridor. The planned 2,000-acre “science city”<br />

will encompass a mix of educational, commercial, laboratory<br />

and residential space. The campus will connect to existing<br />

Tof C

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