Five months ago, Johnson & Johnson also announced plans to invest $2 billion over the next 10 years to operate a 160,000-square-foot manufacturing facility at Fujifilm Biotechnologies’ biomanufacturing campus in Holly Springs, North Carolina. The company said that commitment would create 120 jobs.
Johnson & Johnson has entered a most-favored-nation (MFN) drug pricing agreement that will affect the pricing and availability of some of its medicines in the United States. The agreement places the company among several large biopharmaceutical manufacturers that have committed to offering medicines at prices aligned with those in other developed countries.
Under the agreement, Johnson & Johnson will make certain medicines available at lower prices through the government’s direct-to-consumer platform, TrumpRx.gov. The company did not identify which drugs would be included or provide details on the level of price reductions. It stated only that the prices would be comparable to those in other developed nations. The same pricing standard will apply to Johnson & Johnson medicines supplied through the Medicaid program.
Johnson & Johnson confirmed that participation in TrumpRx.gov will allow Americans to purchase its medicines at discounted rates. The company also said it will provide Medicaid access to its drugs at prices comparable with those in other developed countries. Specific terms of the agreement, including which medicines are covered and the revised prices, were not disclosed.
In exchange for the pricing commitments, the agreement provides Johnson & Johnson with exemptions from U.S. tariffs on imported products. In a statement issued Thursday, the company said the agreement fulfills the requests outlined by President Donald Trump to the pharmaceutical industry and provides tariff exemptions for its pharmaceutical products.
Alongside the pricing agreement, Johnson & Johnson announced plans to expand its U.S. manufacturing footprint. The company said it will build a cell therapy manufacturing facility in Pennsylvania and a drug product manufacturing facility in North Carolina. Johnson & Johnson did not disclose the exact locations of the facilities or the amount it plans to invest in their construction.
These facilities fall under Johnson & Johnson’s previously announced commitment to invest $55 billion in U.S. manufacturing, research and development, and medical technology capabilities by early 2029.
“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,” Joaquin Duato, Johnson & Johnson’s chief executive officer, said in a release.
The agreement comes three weeks after President Trump announced similar MFN pricing arrangements with nine other pharmaceutical companies: Amgen, Boehringer Ingelheim, Bristol Myers Squibb, Gilead, GSK, Merck, Novartis, Roche’s Genentech, and Sanofi. Earlier last year, AstraZeneca, EMD Serono, Pfizer, Eli Lilly, and Novo Nordisk also reached MFN agreements with the administration. These agreements followed letters sent in July to the leaders of 17 major drugmakers, requesting that U.S. prices for new drugs be matched to the lowest prices offered in other developed countries. AbbVie and Regeneron are the only companies that received letters and have not announced agreements.
Johnson & Johnson’s manufacturing plans build on earlier disclosures made in March of last year, when the company said it would construct three new manufacturing sites in addition to a $2 billion, 500,000-square-foot facility under construction in Wilson, North Carolina. On Friday, the company said it is ramping up hiring for advanced manufacturing employees at the Wilson site, which is expected to employ 500 workers.
Johnson & Johnson Drives Affordable Healthcare with MFN Drug Pricing
By adopting MFN drug pricing, Johnson & Johnson is taking a major step toward making essential medications more affordable for patients across the United States. This initiative aligns with the company’s broader strategy to improve healthcare accessibility while maintaining high standards for innovation and quality. Coupled with its expansion of U.S. manufacturing facilities, Johnson & Johnson ensures that increased domestic production can meet patient demand efficiently, supporting both affordability and supply chain resilience. Through these measures, Johnson & Johnson reinforces its role as a leader in the pharmaceutical industry, demonstrating a commitment to public health and sustainable business practices.
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