How J&J is Boosting Medicine Manufacturing in the US

Global healthcare leader Johnson & Johnson (J&J) has entered into a voluntary agreement with the Trump Administration aimed at expanding patient access to medicines while cutting costs for millions of Americans.

The deal aligns the "innovation powerhouse" with President Donald Trump’s call for the pharmaceutical industry to adopt a most-favoured-nation pricing model. It coincides with J&J’s commitment to build two new facilities – a next-generation cell therapy manufacturing site in Pennsylvania and a state-of-the-art drug production facility in North Carolina.

A central element of the agreement grants J&J’s pharmaceutical products a strategic exemption from recently imposed tariffs. The exemption is contingent upon the company’s continued investment in domestic production, effectively linking US trade policy with industrial expansion.

J&J joins 14 other major drugmakers seeking to stabilise their market position through similar agreements with the White House. The move is designed to help safeguard supply chain resilience amid evolving international trade regulations and aggressive fiscal policy.

Pricing parity and platform access

Joaquin Duato, Chairman and CEO of Johnson & Johnson, said: “Today’s agreement shows that when the public and private sectors work together towards shared goals, we can deliver real results for patients and the US economy. I’m proud that Johnson & Johnson is answering President Trump’s call to lower drug prices for everyday Americans while maintaining our role in improving and saving lives and ensuring that the United States continues to lead the world in healthcare innovation.”

Joaquin emphasised that the partnership represents a proactive response to the administration's directive to align domestic prices with those of other developed nations. A key element is J&J’s participation in TrumpRx.gov, a new direct-to-patient platform enabling Americans to buy medicines at significantly discounted rates.

Expanding the domestic industrial base

Beyond the digital platform, the agreement ensures that US patients pay prices comparable to those in peer economies. This standard also extends to the Medicaid programme, promoting fiscal sustainability across state-led healthcare systems.

The pricing shift coincides with J&J’s ongoing capital expenditure programme. The company is progressing with its previously announced US$55bn investment to strengthen US manufacturing, research, and technology through early 2029.

Over the past 10 months, it has channelled funds to scale domestic production of advanced medicines, reducing dependence on complex and often fragile international logistics networks.

Advanced therapies and regional growth

The company’s manufacturing expansion is being driven by several major projects across the American South and Northeast. It confirmed plans for a next-generation cell therapy manufacturing site in Pennsylvania and a cutting-edge drug product facility in North Carolina.

While specific locations remain undisclosed, both projects mark a significant expansion of J&J’s specialised production capacity. They will focus on key areas of the company’s pharmaceutical portfolio, particularly oncology and neurology treatments.

This regional strategy underscores the rising importance of the Life Sciences corridor, where infrastructure and skilled labour are readily available. It reflects a continued pattern of investment as J&J scales up its industrial commitments across these regions.

Strategic reshoring and fiscal incentives

In Wilson, North Carolina, construction is already advancing on a US$2bn biologics manufacturing facility that broke ground in 2025 and is expected to create 5,000 skilled manufacturing and construction jobs.

In September, the company also secured a 160,000sq ft biopharmaceutical manufacturing site in Holly Springs, backed by a US$2bn commitment over the next decade and creating 120 specialised roles.

These investments form part of a wider industry trend that has seen biopharma giants such as Novartis and Eli Lilly concentrate their production in domestic hubs to meet the administration's "made in America" standards.

The pharmaceutical companies that have struck deals with the Trump Administration include:

• Johnson & Johnson
• Amgen
• Boehringer Ingelheim
• Bristol Myers Squibb
• Roche’s Genentech unit
• Gilead
• GSK
• Merck
• Novartis
• Sanofi
• Pfizer
• AstraZeneca
• EMD Serono
• Eli Lilly
• Novo Nordisk.

Securing the pharmaceutical supply chain

AbbVie and Regeneron remain the only two companies from the original group of 17 targeted by the White House in July 2025 yet to finalise agreements.

For healthcare leaders, these arrangements mark a significant shift in how drug pricing and manufacturing are negotiated at the federal level.

J&J concluded: “The joint agreement meets the requests laid out by President Trump to the industry and provides the company’s pharmaceutical products an exemption from tariffs.”