Puerto Rico Manufacturing Proposition Analysis
US government is considering a range of actions as lever to drive significant
in-shoring of biopharma and medtech manufacturing to the US
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Financial incentives
Tax credits, reductions in taxable income, reductions in import duties, sourcing penalties
Procurement bans
Restrictive government purchasing, penalties for sourcing from target jurisdictions
Trade restrictions
Import bans, Export restrictions, punitive tariffs, local content/manufacturing requirements
Access incentives
Expedited approvals, exclusive reimbursement, preferential pricing
Current
situation
Over 15 localization bills¹ to strengthen healthcare manufacturing and supply
chain introduced in Congress post COVID-19 ...
however, provisions vary by bill, so companies are considering several
alternative scenarios for how federal action could play out
1. There are more than 20 bills that look at US biopharma and medtech supply chain resilience more broadly (e.g., focusing on reporting requirements, empowering the SecHHS to
conduct studies on current supply chain, etc.)
Source: USTR, USPTO, US Dept. of Treasury, IRS, Pharm Nets, Congress. Gov, synthesized expert interviews, industry publications, BCG analysis
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