Puerto Rico: Reclaiming Our Role in America’s Pharmaceutical Independence—A Call to Action

Samuel A. Delgado*

NEWARK – In 2020, during the unprecedented global crisis of COVID-19, I wrote in an op-ed the urgent need for the United States to revamp its approach to pharmaceutical manufacturing. Today, that call to action remains crucial, not only for all Americans, but especially for our Puerto Rican community, both on the island and across the U.S. The challenges highlighted during the pandemic persist, making our advocacy for change not only relevant but essential for our  collective future.

The pandemic exposed a critical vulnerability: the U.S. heavily depends on foreign countries, particularly China, for essential medications like antibiotics, pain relievers, and vitamins. This over-reliance is risky—it was clearly demonstrated when supply chain disruptions occurred, leaving us facing shortages amidst a global health emergency. Such dependence compromises not only our health security but also our national sovereignty.

Whatever you may think of the Trump administration, its championing for bringing manufacturing jobs back to American soil to enhance national security and ensure a stable supply of critical goods such as medical products is a good policy that Americans Citizens should support. Puerto Rico, with its rich history as a pharmaceutical hub, is perfectly positioned to be at the forefront of this shift. Our island has the infrastructure, skilled workforce, and historical experience to become a central player once again in America’s pharmaceutical landscape.

Puerto Rico was once celebrated as a manufacturing powerhouse, particularly after the Tax Reform Act of 1976 and IRS Code 936 which incentivized pharmaceutical production on the island. However, the phase-out of these incentives under President Clinton led to significant economic repercussions. Job losses in the pharmaceutical sector contributed to Puerto Rico’s economic downturn and the debt crisis it still struggles with today.

Reinstating tax incentives can reignite Puerto Rico’s pharmaceutical sector, offering not just economic relief but also a chance for Puerto Ricans to lead in an industry crucial to the health of millions. Companies like Eli Lilly are already expanding their presence, investing millions and betting on Puerto Rico’s capacity for innovation and growth in biopharmaceuticals. This expansion is a testament to our potential to excel in advanced manufacturing and innovation once more.

It is imperative for the Puerto Rican diaspora, especially our vibrant communities in New Jersey and organizations like the New Jersey Puerto Rico Commission to push for legislative changes that support this vision. We need to lobby our Congressional delegates to restore and enhance the incentives for pharmaceutical manufacturing in Puerto Rico. Doing so would not only help reduce America’s dependency on foreign drug manufacturing but also bolster Puerto Rico’s economy by creating jobs and restoring pride among our people.

The call I made in 2020 is still relevant  for our community. As we address post-pandemic challenges and look towards a more secure future, the rationale for revitalizing Puerto Rico’s role in pharmaceutical manufacturing has never been clearer. This effort is pivotal—not just as an economic initiative but as a critical component of our national security strategy. Ensuring that America is prepared for any health crisis with a resilient, self-reliant pharmaceutical supply is imperative.

We have a golden opportunity to drive significant change. By advocating for policies that rejuvenate Puerto Rico’s economy and secure America’s pharmaceutical independence, we can achieve a dual victory. Let’s rally together to make this vision a reality, enhancing the well-being of Puerto Rico and ensuring a stronger, healthier future for New Jersey and all Americans. 

*Samuel A. Delgado is the retired vice president of external affairs for Verizon New Jersey in Newark and former Chairman of the Newark Regional Business Partnership.