Johnson & Johnson Reaches Agreement with U.S. Government to Improve Access to Medicines and Lower Costs for Millions of Americans; Delivers on U.S. Manufacturing and Innovation Investments

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Key Terms

tariffs regulatory

Tariffs are taxes imposed by a government on goods imported from other countries. They increase the cost of those goods, which can lead to higher prices for consumers and impact international trade. For investors, tariffs matter because they can influence the profitability of companies, affect supply chains, and shift economic stability across different regions.

medicaid regulatory

Medicaid is a government-funded health insurance program that provides medical coverage to low-income individuals, families, elderly people and people with disabilities, administered jointly by the federal government and state governments in the United States. For investors, Medicaid matters because changes in eligibility, funding, or payment rules can alter patient volume and the prices hospitals, nursing homes, insurers and medical suppliers receive—similar to how a large customer or contract can shift a company’s revenue outlook.

cell therapy medical

Cell therapy uses living human or animal cells as the medicine: cells are collected, sometimes grown or altered, and then given to a patient to repair, replace, or boost damaged tissue or immune function. For investors, cell therapies can transform markets because they may offer one-time or highly effective treatments that command premium prices, but they also carry high development, manufacturing and regulatory costs and commercial risks, like building a custom factory rather than making a simple product.

biologics medical

Biologics are medicines made from living cells or their components rather than from simple chemical recipes, more like a handcrafted product than a mass-produced pill. They matter to investors because they often command higher prices and longer patent protection but also carry greater manufacturing, regulatory and supply risks—so a successful biologic can boost a company’s revenue significantly, while setbacks can quickly affect its stock.

biopharmaceutical medical

A biopharmaceutical is a medicine made from living organisms or their components—such as proteins, cells or genetic material—rather than chemically synthesized compounds. For investors, these products can command high prices and long patent protection but also carry bigger development, manufacturing and regulatory risks; think of them like handcrafted, high-tech products that can generate strong returns if they work, but are costly and complex to produce.

01/08/2026 - 08:24 PM

Voluntary agreement will allow millions of Americans to purchase medicines at significantly discounted rates

Agreement provides Johnson & Johnson pharmaceutical products an exemption from U.S. tariffs

Company announces two new additional manufacturing facilities to be built in North Carolina and Pennsylvania; continues to deliver on $55 billion U.S. investment

NEW BRUNSWICK, N.J.--(BUSINESS WIRE)-- Johnson & Johnson (NYSE: JNJ) (the “Company”), healthcare’s leading, most comprehensive innovation powerhouse, today announced a voluntary agreement with the Trump Administration to improve access to medicines and lower costs for millions of American patients. The joint agreement meets the requests laid out by President Trump to the industry and provides the Company’s pharmaceutical products an exemption from tariffs¹.

“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 U.S. economy,” said Joaquin Duato, Chairman and Chief Executive Officer, Johnson & Johnson. “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.”

Improving Access and Lowering Costs for U.S. Patients
Johnson & Johnson is working with the Trump Administration to improve access to medicines and lower costs for millions of American patients. The Company is:

Participating in TrumpRx.gov, a direct to patient platform, which will allow millions of American patients to purchase medicines from Johnson & Johnson at significantly discounted rates.
Enabling American patients to access medicines at comparable prices to other developed countries.
Providing Medicaid program access at comparable prices to other developed countries.
Continuing to support the Administration's efforts to ensure better recognition of the value of health care across developed markets globally.

Delivering On Our $55B U.S. Investment
Johnson & Johnson also continues to deliver on our previously announced $55 billion investment to support U.S. manufacturing, research and development, and technology investments by early 2029. In just the last 10 months, the Company has initiated billions of dollars in investment in U.S. manufacturing, which will support the Company’s goal of manufacturing the vast majority of its advanced medicines in the U.S. to meet the needs of U.S. patients.

Today, as part of the $55 billion investment, the Company is announcing two new U.S. manufacturing facilities, including a next generation cell therapy manufacturing site in Pennsylvania and a state-of-the-art drug product manufacturing facility in North Carolina.

Additionally, construction is progressing on our $2 billion state-of-the-art biologics manufacturing facility in Wilson, North Carolina, which the Company broke ground on last year. That project will create approximately 5,000 skilled manufacturing and construction jobs in the state. Johnson & Johnson is already ramping up the hiring of advanced manufacturing employees to work at the facility.

In September, the Company also secured a new 160,000+ square foot dedicated biopharmaceutical manufacturing site in Holly Springs, North Carolina. The $2 billion commitment over the next 10 years will create approximately 120 new jobs in North Carolina.

Johnson & Johnson expects to announce additional U.S. investments later this year.

About Johnson & Johnson:
At Johnson & Johnson, we believe health is everything. Our strength in healthcare innovation empowers us to build a world where complex diseases are prevented, treated, and cured, where treatments are smarter and less invasive, and solutions are personal. Through our expertise in Innovative Medicine and MedTech, we are uniquely positioned to innovate across the full spectrum of healthcare solutions today to deliver the breakthroughs of tomorrow and profoundly impact health for humanity. Learn more at www.jnj.com.

Cautions Concerning Forward-Looking Statements
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: challenges and uncertainties inherent in product research and development, including the uncertainty of clinical success and of obtaining regulatory approvals; uncertainty of commercial success; manufacturing difficulties and delays; competition, including technological advances, new products and patents attained by competitors; challenges to patents; product efficacy or safety concerns resulting in product recalls or regulatory actions; changes in behavior and spending patterns of purchasers of health care products and services; changes to applicable laws and regulations, including global health care reforms; and trends toward health care cost containment. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s most recent Annual Report on Form 10-K, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and in Johnson & Johnson’s subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com, www.investor.jnj.com or on request from Johnson & Johnson. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

¹ Specific terms of the agreement remain confidential.