Why Puerto Rico Could Reclaim Its Status as a Pharmaceutical Powerhouse: The Hidden Opportunity Behind Reshoring
Puerto Rico’s pharmaceutical roots and the Section 936 story For much of the late 20th century, Puerto Rico was an unlikely but critical component of America’s medicine chest. The island’s status as a U.S. territory provided access to federal intellectual‑property protections, Food and Drug Administration (FDA) oversight and the “Made in USA” label—all while offering costs and tax advantages more akin to an emerging market. The most potent driver was Section 936, enacted in 1976, which exempted profits earned by U.S. corporations in Puerto Rico from federal income taxes. Pharmaceutical giants set up dozens of plants, creating tens of thousands of jobs and
