CytoImmune Therapeutics and Biosimilar Sciences will invest a combined total of $228 million to set up operations in Puerto Rico.
The plan â€“ which was announced by Invest Puerto Rico last week â€“ will see the firms perform novel biologics and cell therapy research and development and hire around 400 employees.
A CytoImmune spokesman told us â€śWe chose Puerto Rico due to talented workforce, experienced Pharma service providers, tax incentives, excellent access to US and worldwide shipping, US manufacturing.
He added, â€śWe are finishing an approximately 40,000 square foot facility in Toa Baja that will house most R&D and all manufacturing. â€ś
Both companies are taking advantage of the Puerto Rico Incentives Code (Act 60) â€“ a provision provides exemptionÂ fromÂ income taxes on passive income accrued for firms with local operations.
CytoImmune said it will spend $28 million to set up the facility, adding it expects to hire around 100 people. Activities will focus on the development and sale of novel, immunotherapy products.
Biosimilar Sciences â€“ which is a separate company â€“ will spend $200 million to establish a facility in the neighboring town of Aguadilla.
The firm plans to develop a series of products, including a COVID-19 vaccine, cell and gene therapies, biosimilars, and other recombinant modalities.
In a press statement Puerto Rico Governor Pedro Pierluisi cited the investments as testament to the work of Invest Puerto Rico and the Department of Economic Development and Commerce.
â€śAn increasing number of companies are leveraging the Islandâ€™s value proposition to boost their operations, which in turn leads to increased private investment, job creation, and a positive return on investment for all.
â€śFurthermore, Puerto Rico is ready to serve our nation by providing a proven ecosystem for reshoring to bring back manufacturing to US soil and ensuring our critical supply chain.â€ť
According to Invest Puerto Rico, in 2018 five of the world’s top 10 selling drugs â€“ specifically Humira, Eliquis, Opdivo, Enbrel and Xarelto â€“ were manufactured on the island.
In 2019, Puerto Rican pharmaceutical exports totaled more thanÂ $44 billion. Of that,Â $30.9 billionÂ was exported to the US market, whileÂ $13.2 billionÂ went to other countries, significantly more than any other US state.