Puerto Rico Manufacturing Proposition Analysis

Rationale Topics for discussion Based on publicly available company data and interview synthesis Proactive outreach will be critical in near-term, and companies - especially CDMOS are open to dialogue 1A MNCs & OEMs with existing footprint • Existing relationships and largely open to discussions on product/line moves Important to ensure appropriate actions to retain Puerto Rico volumes in any case Ensure Puerto Rico is in the scenario discussion now as federal actions play out • Understand supply chain resilience of medically necessary products, including understanding upstream value chain e.g. API for biopharma, or raw materials, parts, and mid-level assembly for medtech Reinforce Puerto Rico value proposition, including track record for existing sites, lower barriers to expansion such as available labor Discuss scenarios, continue engagement, align on action plan when there is more clarity on federal legislation 1B CDMOS with/without footprint • Many already engaging with customers about potential US supply chain needs Able to create scale by pooling incremental moves by companies on/off island Driven by ROIC¹ and economics, so incentives are material to site decisions Understand what they are hearing from their customers (e.g., increased US demand, likelihood and stringency of potential legislative changes) Understand ability to serve customers such as current CDMO US footprint and capacity Reinforce Puerto Rico value proposition Discuss scenarios, continue engagement, align on action plan when there is more clarity on federal legislation 2 Companies without footprint • Potential to interest companies with concentration of high potential products • • Overall level of interest likely dependent on if there is extreme federal action Potential for coverage of companies without footprint via CDMOs in near-term Initiate discussions with key stakeholders to better understand company context and introduce PR value proposition Assess likelihood of major internal moves Potentially raise opportunity and value of outsourcing and connect with actively engaged CDMOs in parallel (even potentially approach with CDMO) Selectively continue discussions based on company interest and further clarity on legislation 1. Return on invested capital Source: Publicly available company data, expert interviews, BCG analysis 21 Copyright ©2020 by Boston Consulting Group. All rights reserved.

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