Taiwanese pharmaceutical firms accelerate North American push as Trump imposes 100% pharma tariffs

From Puerto Rico’s tax-advantaged “pharma hub” to US acquisitions, Taiwanese pharmaceutical companies are rapidly scaling their North American footprint amid shifting supply chains and policy headwinds.

A strategic leap into the Caribbean “pharma hub”

Taiwanese biopharmaceutical firm PharmaEssentia has formalized a $46 million investment to establish production operations in Toa Baja, Puerto Rico, underscoring a broader wave of Taiwanese pharmaceutical expansion into North America.

At a March 30 agreement signing ceremony attended by senior Puerto Rican officials and US representatives, the company marked the launch of its first overseas manufacturing base in the United States, positioning the Caribbean territory as a linchpin in its “dual production hub”  strategy spanning Taiwan and the US.

Puerto Rico Governor Jenniffer González-Colón, who since 2025 has governed the US territory often referred to as the "Medicine Cabinet of the US", hailed the investment as a testament to the island’s growing stature as a global life sciences hub. She noted that such projects not only reinforce supply chain resilience but also generate high-value employment while consolidating the territory’s role in the biopharmaceutical industry.

Charles Chou (周啟宇), director general of Taiwan's de-facto consulate in Miami, described PharmaEssentia’s planned manufacturing facility as a landmark investment between Taiwan and Puerto Rico. He said it not only deepens bilateral ties but also reinforces the broader US-Taiwan pharmaceutical ecosystem.

PharmaEssentia said it is planning to advance multi-country commercialization of its latest therapies and is expanding production capacity to ensure stable supply and capture emerging global market opportunities.

The company emphasized that its entry into Puerto Rico represents not merely a capacity upgrade, but a strategic foothold in the US market.

It added that it is honored to establish its first overseas manufacturing base in the United States, with Puerto Rico set to serve as a critical hub supporting the company’s delivery of consistent, high-quality medicines to patients worldwide.

Why Puerto Rico? Tax, Territory, and Talent

Puerto Rico has re-emerged as a magnet for global big pharma, offering a mix of advantages: preferential tax decrees, proximity to the US mainland, and full alignment with US Food and Drug Administration (FDA) regulatory frameworks.

For PharmaEssentia, these structural benefits are decisive. By establishing manufacturing within a US jurisdiction, the company could potentially mitigate geopolitical risks and potential tariff barriers, while gaining direct access to the world’s largest pharmaceutical market.

The move also came amid the latest developments in Washington over pharmaceutical tariffs, as US President Donald Trump invoked on April 2 Section 232 of the Trade Expansion Act of 1962, imposing up to 100% tariffs on the import of patented pharmaceuticals as well as pharmaceutical ingredients.

This added urgency for non-US firms to localize production. Against this backdrop, Puerto Rico’s policy stability and long-term tax incentives offer a compelling value proposition.

Sebastián Negrón-Reichard, secretary of the DDEC — the leading entity in the executive branch of Puerto Rico's government — highlighted that PharmaEssentia’s investment demonstrates Puerto Rico’s continued role as a key destination within the US for reshoring advanced manufacturing especially in highly regulated industries like life sciences.

“Puerto Rico offers the talent, infrastructure, and regulatory expertise that global companies seek,” he said. He added that firms establishing operations on the island do not start from scratch, but rather integrate into a proven, highly specialized ecosystem that enables execution with speed and certainty.

Scaling up for global demand

Central to PharmaEssentia’s expansion is its flagship drug, Ropeginterferon alfa-2b, colloquially known as the Ropeg, a long-acting therapy whose global demand continues to rise.

The company said it is also anticipating US regulatory approval for an additional indication in essential thrombocythemia, expected as early as August this year.

To support this growth trajectory, PharmaEssentia said the Puerto Rico facility will replicate the design and processes of its FDA-certified Taichung plant under a “copy exact” model — an approach intended to accelerate regulatory approval while ensuring consistency in quality and efficiency.

The company added that extensive groundwork has already been laid, including site inspections, cross-border team coordination, and regulatory engagement with local authorities.

A broader Taiwanese push into North America

PharmaEssentia’s move is emblematic of a wider trend: Taiwanese pharmaceutical companies are increasingly venturing into North America, seeking scale, regulatory proximity, and market access.

Bora Pharmaceuticals, a contract pharmaceutical company headquartered in Taipei, has expanded in the US and Canada through acquisitions, including its purchase of Upsher-Smith Laboratories, significantly enhancing its manufacturing and commercial capabilities across the continent.

The company noted that its two manufacturing sites in Minnesota contributed to its established commercial-scale production capabilities, supporting a wide range of dosage forms including oral solids, powders, and liquid formulations, alongside integrated packaging lines.

Through establishing a US presence, Bora Pharmaceuticals stated that it not only secures scaled-up, high-quality capacity to support the expansion of its global Contract Development and Manufacturing Organization (CDMO) business, but also enhances its ability to deliver end-to-end contract manufacturing services.

Similarly, API manufacturer Formosa Laboratories has strengthened its North American presence through strategic partnerships and capacity expansion, aiming to integrate more deeply into global supply chains.

In 2024, it completed the acquisition deal of Synchem to expanded its North American CDMO footprint. It now operates in the Chicago metropolitan area through SynChem-Formosa, a wholly-owned subsidiary.

These efforts reflect a structural shift. Once primarily export-oriented, Taiwan’s pharmaceutical sector is now pivoting toward localized production and direct market engagement — an evolution driven by both opportunity and necessity.

Navigating policy and geopolitical headwinds

Global pharmaceutical supply chains are undergoing recalibration in response to pandemic-era disruptions, geopolitical tensions, and shifting trade policies.

In particular, the specter of renewed US tariffs on imported pharmaceuticals has heightened the urgency for overseas manufacturers to establish a domestic footprint.

For Taiwanese pharmaceutical companies, investing in US-linked jurisdictions like Puerto Rico offers a hedge against these uncertainties, enabling them to maintain market access amid policy volatility.

For Puerto Rico, the arrival of Taiwanese big pharma adds another layer to its diversified investor base. For Taiwan, it marks a decisive step toward embedding itself within the global pharmaceutical ecosystem — not merely as a supplier, but as a strategic participant.