The Caribbean island of Puerto Rico and the continent of Australia might be thousands of miles and many time zones apart, but when Australian-based Mayne Pharmaceuticals chose to include its Aguadilla, Puerto Rico operation in its expansion plans, geography was last thing on its mind.

Currently, Mayne Pharmaceuticals, a global specialty pharmaceutical and health care company, has offices in 20 countries and distributes in over 30 others. The company has major operations in the US, Canada, the UK and Australia.“Considerable sales growth over the past two years meant that further investment in manufacturing capacity was required,” says Stuart James, Mayne’s group managing director and CEO.

Advertisement

Increased demand

To meet the needs for increased sales the company is upgrading production services at its two injectable pharmaceutical manufacturing plants in Australia and Puerto Rico – an investment of approximately $60m. While the Melbourne, Australia facility will receive the lion’s share of the investment, $7.5m is slated for Puerto Rico to create a laboratory dedicated to the development of drug applications.

“The rest of the investment, $5.2m, will be used to duplicate the production capacity for injectables by adding a new and complete production line,” says Lelia Fuentes, general manager at the Aguadilla plant.

Mayne Pharmaceuticals PR Inc already manufacturers a range of injectable pharmaceuticals. A new filling suite and laboratory facilities, that will encompass 65,378sqft in size, will enable the facility to double its output.

“Similarly, the improvements at Aguadilla will provide us with more flexibility to meet the demands of the US and European markets where we have been growing our product portfolio,” Mr. James says.

Ms Fuentes points out that increasing sales in the US market is a particular goal of the company’s commitment to the Puerto Rico plant. “This goal was most attainable by expanding the facility in Puerto Rico,” Ms Fuentes says.

Advertisement

Niche market

Ms Fuentes says the facility’s performance and experience in the field of injectable products is a prime reasons for its current success. Puerto Rico, in general, has carved out a niche in pharmaceutical manufacturing. The island is home to 86 pharmaceutical and 59 medical device manufacturing plants. Some 16 of the top 20 selling drugs in the world are made in Puerto Rico, nine of which are produced there exclusively.

High productivity levels have enabled Mayne Pharmaceuticals to surpass its original performance goals and expectations. Puerto Rico’s manufacturing productivity levels, in general, outrank those of the UK, continental US and Canada.

A shot in the arm to the pharmaceutical industry, Puerto Rico recently passed legislation to further promote R&D projects in Puerto Rico. Companies can deduct double the cost of any R&D or job training done on the island. In addition, the government allows for accelerated depreciation and a 100% deduction for initial construction and first-year operations.

The low cost of operating on Puerto Rico, plus local government incentives, tax advantages and workforce technical expertise were prime reasons for Mayne’s expansion. The local economic development agency has also lent a helping hand.

“The Puerto Rico Industrial Development Company (PRIDCO) is serving as an ally in the process with the government of Puerto Rico,” Ms Fuentes says. “By working with PRIDCO, Mayne has been able to streamline the permitting process and complete what would normally take 18 months in less than a year.”

Human resources

PRIDCO has also helped in the hiring process as well. The agency has partnered Mayne with the University of Puerto Rico where Mayne was able to locate 95% of their employees. Since Puerto Rico outranks the UK, the US and Canada for its manufacturing productivity – ranking second in the world – the island has ample quality-conscious, highly educated and largely bilingual employees.

Mayne originally founded its operations in Puerto Rico in 1995 with five people. By 2005, the company expects to employ 190 staff.

Find out more about