Biopharma industry pumps $3B into economy, creates 87K jobs
Puerto Rico’s biopharmaceutical industry contributes $3 billion to the government’s coffers, representing 37% of the revenue the public sector collects, according to a study commissioned by the Pharmaceutical Industry Association (PIA).
Economist Leslie Adames, director of the Economic Policy and Analysis Division of research firm Estudios Técnicos Inc., confirmed that the biopharmaceutical industry contributes 18% of the Gross Domestic Product (GDP) and generates more than 87,400 direct and indirect jobs on the island.
This includes 18,000 direct jobs in different pharmaceutical companies that operate locally and whose employees pay more than $150 million in annual taxes.
It is estimated that the average salary of employees in the industry is $80,000 a year and a payroll of more than $1.4 billion is paid annually. The industry sources local products and services that are valued at more than $750 million annually, the firm stated.
Puerto Rico produces four of the top 20 drugs consumed globally. In total, 11 of the 20 main biopharmaceutical companies in the world have manufacturing operations in Puerto Rico, specifically in 11 municipalities where they generate jobs, economic activity, pay patents and invest in community and educational programs, Estudios Técnicos noted.
The biopharmaceutical industry has made a substantial investment in infrastructure on the island with $10 billion in accumulated capital and an annual investment of $500 million in maintenance of this infrastructure.
“Puerto Rico meets the highest world-class quality standards, with advanced technology, distributes medicines to more than 100 countries around the world and is a leader in the quality of the medicines it produces,” the economist said.
The research also showed that 75% of the employees who work in this industry have a college degree and many have received their education and training in Puerto Rico and “work to safeguard the medicines that reach the homes of Puerto Rico and the world.”
Meanwhile, the biopharmaceutical industry invests more than $3 million annually in communities.