Devastation of Puerto Rico’s Medical Product Industry Could Have Major Consequences for Rest of Country

October 16, 2017 | Strategic Insights for Ambulatory Care

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​Because of the devastation brought by Hurricane Maria, the U.S. Food and Drug Administration (FDA) is taking efforts to avoid shortages of critical medical products made in Puerto Rico, FDA announced on September 25, 2017. Several U.S. companies moved production facilities to Puerto Rico after the U.S. Congress passed legislation in 1976 granting tax incentives for income generated from U.S. territories. "Dozens of drug and device manufacturing facilities" that produce products such as cancer drugs and immunosuppressants are located in Puerto Rico, FDA said. The storm, which left the entire island without power, has created challenges related to refrigeration, storage, and transportation at these facilities. FDA said it has "undertaken swift and extensive efforts" to mitigate any loss and shortages of these drugs, including relocating production.

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