J&J to invest $55bn in US operations, focusing on domestic manufacturing
From Yahoo Finance: 2025-03-21 14:22:00
Johnson & Johnson (J&J) plans to invest $55bn in expanding its US operations over the next four years, focusing on domestic manufacturing. A $2bn biologics production site in North Carolina is underway, creating 500 jobs. In response to government policies, major pharmaceutical companies like Eli Lilly are also expanding in the US.
The Trump administration’s tariffs and trade measures aim to reshore pharmaceutical manufacturing to the US. Industry groups like the Healthcare Distribution Alliance have expressed concerns about potential higher drug costs and supply chain disruptions. Despite mixed reactions, there is support for federal investment in domestic manufacturing to enhance supply chain resilience.
Big pharma companies like GSK are also expanding in the US, with recent acquisitions and investments in facilities. Before the tariffs were announced, there was a shift towards increased foreign investment in the US pharmaceutical sector. Outbound investment from the US healthcare sector decreased, while inbound investment saw a significant surge, reflecting changing trends in the industry.