New Report Available: Puerto Rico Pharmaceuticals & Healthcare Report Q3 2016

Puerto Rico's importance as a major production hub for multinational pharmaceutical companies will moderate owing to drug patent expirations , production quality issues and a potential tax increase from the local government. However, relatively low production costs and a skilled workforce will continue to attract multinational pharmaceutical investment to the island, as illustrated by recent investment projects announced by US and European drugmakers including Bristol-My ers Squibb, Roche and Sartorius . Meanwhile, Puerto Rico's domestic pharmaceutical and healthcare market is expected to expand modestly over the forecast period, albeit facing headwinds due to an internal devaluation and public expenditure cuts triggered by government debt restructuring.

Full Report Details at
- http://www.fastmr.com/prod/1191658_puerto_rico_pharmaceuticals.aspx?afid=301

Headline Expenditure Projections

Pharmaceuticals: USD3.81bn in 2015 to USD3.82bn in 2016; +0.2%. Forecast revised slightly downwards from last quarter.
Healthcare: USD8.06bn in 2015 to USD8.38bn in 2016; +3.9%. Forecast in line with last quarter.

Risk/Reward Index

In Q316, we have revised upwards Puerto Rico's Risk/Reward Index score to 64.5 from 63.8 in the last quarter (out of 100). The score revision was driven by an improvement in industry risks indices. Puerto Rico continues to stand as the third most attractive market to pharmaceutical investors in the Americas region, behind the US and Canada. Puerto Rico's score is driven by high spending per capita on medicine and high patent respect and business environment indices, but dragged down by a small market size and low sector value growth.

Latest Updates

As of June 2016, Swiss drugmaker Roche is to invest more than USD60mn to expand its pharmaceutical plant in Puerto Rico, creating 40 new jobs and allowing Roche Operations LTD to produce glucose monitoring strips, reports El Nuevo Herald.

In May 2016, Puerto Rico's governor announced that German pharmaceutical supplier Sartorius is to invest USD50mn to expand its plant in Puerto Rico and convert it to its main logistical hub for the Americas.

Also in May, US-based pharmaceutical company Bristol-Myers Squibb announced that it will invest USD85mn to expand its manufacturing facilities located in Manati, Puerto Rico, creating 126 new jobs over the next three years.

In the same month, Allergan and Medicines360 announced that they will donate 10,000 units of their hormonal intrauterine device Liletta (levonorgestrel-releasing intrauterine system) to the US Centers for Disease Control (CDC) Foundation in response to the Zika virus growing prevalence in Puerto Rico. In addition, Allergan will donate over 40,000 one-month cycle packs of oral contraceptives.

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