Puerto Rico Manufacturing Proposition Analysis slide image

Puerto Rico Manufacturing Proposition Analysis

Note: Company names are illustrative Companies fall into archetypes for analysis and prioritization Biopharma Prioritize outreach to companies who own or could manufacture medically essential products Multinational companies (MNCs) • • • . Consolidation of key products in few top companies (branded and generics) Prioritize companies with existing footprint in PR given easier route to expansion Cost sensitivity in many segments, likely to find PR expansion attractive Open the door to upstream conversations (e.g., API, raw materials) CDMOS (Contract Development and Manufacturing Organizations)1 • Well positioned to pool demand across smaller companies looking for reliable coverage of US market Some have presence in PR already they can leverage for expansion, and turnkey sites improve ROIC Small to mid-sized companies . • Medtronic abbvie teva stryker® Catalent. Thermo Fisher SCIENTIFIC Expected sig. growth in US sales over next 5 years Opportunity to capture growth or transition to commercial manufacturing for new products Initially, address through small company advocates and trade associations for scale 1. Inclusive of CMOs (Contract Manufacturing Organizations) biohaven ☐ pharmaceuticals NUVASIVE TTT JABIL flex. Medtech Target OEMs and CDMOS with footprint in PR in key product segments for incremental expansion, esp. by bringing more supply chain steps to PR Large OEMs Top few companies have very broad portfolios covering many key segments Prioritize OEMs with existing footprint; likely to have underutilized capacity that can be leveraged for additional production, or ability to build out on a campus / nearby for new capabilities Existing manufacturing ecosystem across the value chain Leading CDMOs or suppliers with coverage of US Medtech ecosystem Potential to pool demand across smaller companies or without US mfg footprint - can help companies establish US • • • component of supply chains Availability of mfg ecosystem, labor, and brownfield sites which improve ROIC make PR appealing to these companies Increasingly active in PPE / consumables 13 Copyright 2020 by Boston Consulting Group. All rights reserved.
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