Johnson & Johnson announced a voluntary agreement with the U.S. federal government to improve access to medicines, along with reducing medication costs for American patients and advancing the company’s domestic manufacturing and research initiatives.

The agreement, which responds to directives from the Trump Administration, provides the company’s pharmaceutical products with an exemption from certain tariffs.¹

“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 of Johnson & Johnson. Duato added that the agreement aligns with the company’s broader commitment to lowering drug prices while maintaining its focus on healthcare innovation.

What are the details of the agreement?

As part of the agreement, Johnson & Johnson will participate in TrumpRx, a direct-to-patient (DTC) platform designed to provide U.S. patients with access to medicines at discounted rates.

Johnson and Johnson is now set to join several other large pharma companies who has struck deals with the Trump Administration including, AstraZeneca, Pfizer, Eli Lilly & Novo Nordisk, and nine additional companies who recently joined.

The company is also planning to align pricing for its products with levels in other developed countries, such as providing Medicaid access at comparable rates, with the initiative intending to support broader federal efforts to recognize the value of healthcare across global markets.¹

“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,” said Duato.

Johnson & Johnson continues its $55 Billion investment plan

Johnson & Johnson continues its $55 billion investment in U.S. operations (first announced back in 2025), targeting manufacturing, research & development, and technology infrastructure up to and through 2029.

The company’s recent projects include the initiation of billions of dollars in domestic manufacturing investments along with the construction of new facilities, including a next-generation cell therapy site in Pennsylvania and a drug product manufacturing facility in North Carolina.¹

Johnson and Johnson also announced that construction is underway on its $2 billion biologics manufacturing facility in Wilson, North Carolina, which is expected to generate upwards of 5,000 construction and manufacturing jobs.

The facility comes as in addition to the previously secured 160,000+ square foot biopharmaceutical manufacturing site in Holly Springs, North Carolina, with planned investments of nearly $2 billion across the next decade in order to support roughly 120 new jobs.¹

The company also indicated that further U.S.-based investments are expected to be announced later this year, highlighting the company’s continued focus on domestic production capacity and the development of advanced medicines.

Sources

1. 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. Johnson & Johnson. January 8, 2026. https://www.jnj.com/media-center/press-releases/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