The pharmaceutical sector in Puerto Rico remains concerned about the energy infrastructure on the island, despite acknowledging progress in improving it. According to Iván Román, advisor to the board of directors of the Puerto Rico Pharmaceutical Industry Association (PIA), the industry is uncertain whether the island’s current infrastructure can meet its energy demands. This uncertainty has forced pharmaceutical companies to invest in million-dollar cogeneration systems.
In response to interruptions in the electrical service, dozens of companies in Puerto Rico have opted to become energy “independent”, installing renewable energy systems or fossil generation with natural gas. This has led to the generation of 6% of the island’s electricity demand by corporate and industrial prosumers.
Despite these challenges, pharmaceutical products are produced in Puerto Rico for about 130 countries and represent over 70% of the total exports of the United States territory. However, the energy issue continues to hamper the sector, as recognized by both the Puerto Rico Industrialists Association and the Department of Economic Development and Commerce (DDEC).
The energy cost for the industrial sector in Puerto Rico is significantly higher than in other jurisdictions in the United States, making it a pressing concern for the pharmaceutical industry, which accounts for more than 30% of the island’s GDP.
Despite these challenges, Puerto Rico remains competitive due to the incentives offered by the government. However, the industry is strategizing to retain and attract more companies – one suggestion is to require manufacturers interested in selling their products in the U.S. to establish operations in Puerto Rico.
The expiration of patents for certain drugs has also prompted the pharmaceutical sector to devise new strategies. While some companies have opted to close their operations in Puerto Rico due to patent expiration, others continue to see the island as an excellent location for manufacturing.
In summary, the pharmaceutical sector in Puerto Rico continues to face challenges related to the energy infrastructure, but remains competitive due to incentives and other factors. The industry is strategizing to maintain and attract pharmaceutical companies, while the government is being urged to strengthen the energy infrastructure dedicated to the sector.