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Puerto Rico is OPEN for Business!
Key Stats and Updates
Why You Should Exhibit in 2009
www.interphexpuertorico.com
What’s Happening on the Island …
OPEN for Business
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New Tax Incentives Signed May 28 - cut corporate taxes to 4%,
1% for life sciences “pioneer” companies who invest, even 0% for others
Newly elected Governor – Luis Fortuno - wants to reduce costs of doing business on the
island and has an economic emergency plan for Pharma industry
Many manufacturers are preparing for 2010 and have more time to view machines,
products and services in 2009 than ever before
Life sciences in general are strong
• Medical device industry is strong and growing, investing- double digit growth
• Biotech Industry is strong and growing, big investments
($3.5 bn Capital Investments)
Re-purposed plants – for Medical Device, Generic or Biotech manufacturing
Energy issues are top of mind – suppliers will reap big rewards here!
Automation to manufacturing processes continue to be a hot area
Local suppliers and local access - important
Puerto Rico Economic Incentives
Best in the World
…is a lucrative proposition
DIVIDENDS
4% general scenario
CDORH
WIA funds
Up to 5K / job creation
during its 1st year operation
0% tax
INCOME TAX RATES
Training
R&D
50%
Supply
Chain
SALARIES
UTILITIES
100% deduction
of investment
MACHINERY & EQUIPMENT
INFRASTRUCTURE
LEASE
Investing in Puerto Rico…
25% purchase of products
manufactured in PR
FINANCING
10% electricity tax credit
50% renewable energy
tax credit
PRIDCO match funds
$3-$8 p2
PRIDI
100% exempt bonds
Puerto Rico Key Statistics (Pharma)
• Generic pharmaceuticals are the fastest growing segment of Puerto
Rico’s
drug market. Total value expected to reach US $2.01bn by end of year
2010
• Puerto Rico is still the world’s 5th largest pharmaceutical manufacturing
location behind mainland US, UK, Japan and France
• Pharma and Biotech manufacturing value for 2008 is expected at US
$100bn
• Hundreds of manufacturing plants on the island and 25,000 Pharma
production/manufacturing buyers, 16,000 for Medical Device
• Ranks 2nd after Mexico in Latin America pharmaceuticals business and
per capita spending of US$445 is eight times the Latin American
average
of US $53
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Business Monitor Pharma Report, PRIDCO and INDUNIV Research
Puerto Rico Key Statistics (Biotech)
• 25% of the world’s biological manufacturing capacity is located in
Puerto Rico
• Puerto Rico’s biotech industry is behind only California and
Massachusetts in the US in terms of value
• Puerto Rico’s biotechnology industry is one of the island’s fastest
growing sectors, with capital investments more than $3.5 billion,
more than 2 million square feet of manufacturing space and the
creation of more than 3,000 direct jobs
• Investments in biotechnology product manufacturing is as much as
US$3.5bn, ($850 million from Eli Lilly, $500 million from Abbot Labs,
$300 million from Merck and $200 million from Bristol-MeyersSquibb)
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Business Monitor Pharma Report, PRIDCO and INDUNIV Research
Puerto Rico Key Stats (Med Devices)
• During the fiscal year 2007,the total value of exports from
medical devices sector surpassed $4.6 billion, representing
7.9% of the islands total manufacturing. And Growing!! $200
million from Bristol-Meyers-Squibb)
• Puerto Rico has 68 medical device manufacturing plants,
generating 16,000 direct jobs.
• Key Investments:
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St. Jude- $200 million and 1,200 jobs
LifeScan- $75 million and 350 jobs
Pall Life Sciences- $58 million and 250 jobs
Roche Diagnostics- $40 million and 46 jobs
• 50% of all pacemakers and defribillators sold in the U.S.
Mainland are manufactured in Puerto Rico
• Puerto Rico is 8th in the world for total shipments of
medical/scientific devices.
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Business Monitor Pharma Report, PRIDCO and INDUNIV Research
Hundreds of Life Science Companies
32% of Puerto Rico’s GDP is from
32% of Puerto Rico's GDP is from Bioscience Subsectors
Bioscience
Subsectors (Fiscal Year 2007)
(Fiscal Year 2007)
Health Services
3%
Medical Equipment
5%
Pharmaceutical
Products and
Biotechnology
24%
32%
Rest of GDP
68%
Pharma,
Biotech,
Med. Dev.
Health Care
Source: Puerto Rico Planning Board, 2007.
What’s New for INTERPHEX
Puerto Rico 2009
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New automation training by Rockwell Automation and the Society
of Manufacturing Engineers (SME)
New energy efficiency sessions – green options, best practices
New combination products sessions – next generation drugs
New Governor invited to give keynote address – hear new
Governor Fortuno’s key points on the life science industry
New Exhibitors- Hundreds
New reception theme – opening night World Baseball Classic Reception
– giveaways, music and fun … pitching machine, Wii baseball tournaments
New Exhibitor innovation theater
New Local solutions area and Table Tops
Many biotechnology and medical device buyers- “Largest gathering life science
professionals in the Caribbean. Over 7,000 participate”
Excitement is Building for the Events!
Over 1,200 Registered Buyers for 2009
(December 8,2008)
• Abbott (Facility/Utility Engineer, Principal
Purchasing Agent, Manufacturing Superintendent)
• Amgen (Mgr. Maintenance, Senior Automation,
Sr. Manufacturing) OVER 100 Coming!!
• AMS (Director Operations)
• Baxter (Principal Engineer)
• BD (Process Engineer, QA Improver)
• BMS (Mfgr. Engineer, QA Mgr., Sr. Mfg Supervisor)
• Boston Scientific (R&D Eng., Manufacturing
Engineer)
• Biovail (Director)
• Coopervision (Process Improver)
• Cordis - J&J (Principal Scientist, Principal Engineer)
• Glaxosmithkline (Manufacturing Support Mgr.)
• IPR Pharma (Lab Systems Leader, Process
Engineering)
• J&J (Sourcing Mgr., Operations Reliability, Project
Leader
• Lilly Del Caribe (Instrumentation, Environmental
Engineer, QA, Sr. Process Engineer, Production
Leader)
• McNeil (Facility Maintenance, Manufacturing
Mechanic, Systems Eng.)
• Medtronic (Sr. Mfgr Engineer, Supervisor,
Sr. Technician, Sr. Validation, Sr. Buyer)
• Merck Sharp & Dohme (Automation Engineer,
Sr. Industrial Engineer)
• Mylan (QA Mgr)
• Ortho Pharma (Instrumentation Tech, Validation
Specialist, Operation Mgr)
• Paciv (Sr. Automation Engineer)
• Pall Life Sciences (Principal Engineer)
• Pfizer (QA and Team Leader Automation)
• Schering-Plough ( Warehouse & Traffic
Manager, Tech Support)
• St. Jude Medical (Sr. Quality Engineer,
Sr. Mgr Engineer)
• Wyeth (Operations Mgr., Automation Group
Leader, QA)
Why You Should Exhibit in a Downturn
Economy
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Stay strong in the tough times! More marketing! Best tool are trade shows, Customer
feedback
Gain market share from competitors
Efficiency – less costly sales leads ($625 vs. $1,117 & 1.3 vs. 3.7 phone calls to close
Touch and see – cannot bring equipment on sales calls
More focused buyers – key individuals, ones who make decisions, they have spent time
and money to come so they are very qualified
Pass-along promotions – 35% will pass to 1-3, 35% will pass to 4-6, 10% will pass
to 7-10 and 20% will pass to 11+
New customers – uncover unknown buying influences, 88% have not been called by
a sales person
Buying power – 86% of show attendees called the shots or influenced buying, and 75%
left the show with at least one purchase
BRANDING of your company during hard time, shows commitment to the industry
* CEIR, Tradeshow Week data book, Reed Expo
INTERPHEX will HELP Your Business
by Cutting Exhibitor Expenses in 2009
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Re-negotiated lower hotel room prices by $34 or more per night
Airfares are dropping in price with fuel costs down – JetBlue offering a special
additional 5% to INTERPHEX customers
Free lunch both days for two staff – included in your booth cost
Complimentary opening night reception and Fiesta Hour for all staff
Daily parking passes – in and out privileges
Value program for over 400 NSF exhibitors and 1,751 lbs
– Material Handling and Drayage Program for 400 nsf and more booths –
50% discount
– Shipping Program – EAX offering 15% discount off transportation charge if
you have 400 nsf and 2,000 lbs or airfreight
Complimentary 250 leads for signing in 2009
Multi-Show Discounts for 2 and 3 shows- 10% off Puerto Rico if you are
exhibiting in INTERPHEX USA or Canada and 15% off if you exhibit at both USA
and Canada
Table Tops for less than $2,000
We know costs add up quickly and these programs will help lower costs!
Event Marketing and Promotions
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Face to face/grass roots marketing – GM meetings, receptions, locally
each month
Extensive emails to the Puerto Rico market
Direct mail – two in-depth pieces
Telemarketing – 8 weeks out
On-line marketing – all trade publications and El Nuevo Dia
Radio spots and interviews – WOSO
Billboards in high traffic areas
Exhibitor VIP’s – big push
Buttons on facility websites
Viral marketing to US mainland facilities
Trade magazine advertising – Over 50 ads in major publications
Puerto Rico based marketing – Caribbean business, Industriales,
Tecnomundo, Camara en Accion
Association promotions ( PRMA, INDUNIV, ISPE, PRTEC, APICS,
AdvaMed, MDMA, SBTDC, Chamber of Commerce)
Still time to Exhibit!
INTERPHEX allows you to:
• Stay in the market, keep market share growing
• Prepare for the future of manufacturing market
• Take advantage of growth from the Biotech and
medical device sectors
• Focus on business relationships you currently have
in Puerto Rico and the new ones you can meet if you
are exhibiting
• Build the company perception
Q&A/ INTERPHEX Contacts
• Questions
• Feedback
Pete Zezima – Group Sales Director for Puerto Rico, NY and Canada
(203) 840-5447
[email protected]
Chris Domans – Sales Manager for Puerto Rico, NY and Canada
(203) 840-5351
[email protected]
Kevin Richards – Group Vice President, Reed Life Sciences
(203) 840-6221
[email protected]