Johnson & Johnson to invest US$2 billion to boost US manufacturing as drug tariffs loom

[NEW YORK] Johnson & Johnson (J&J) said on Thursday (Aug 21) it would invest US$2 billion in North Carolina as it aims to expand its US manufacturing presence amid looming drug import duties proposed by President Donald Trump’s administration.

Major drugmakers, including Eli Lilly and AstraZeneca, have also committed to shell out billions of US dollars to scale up their US footprint in response to Trump’s efforts, including tariff threats.

Earlier this month, Trump said he plans to impose phased-in tariffs for the pharmaceutical sector, which could start small and eventually rise to 250 per cent.

J&J said on Thursday it has reached a 10-year agreement with Tokyo-based contract drug developer Fujifilm Diosynth for its more than 160,000-square-foot manufacturing facility in Holly Springs, North Carolina, which would create about 120 new jobs.

Fujifilm in April had signed a more than US$3 billion deal with Regeneron to manufacture and supply drug products for the US-based company at its North Carolina facility for a span of 10 years.

J&J would also announce plans for additional manufacturing facilities in the US and the expansion of current US sites in the coming months.

The healthcare conglomerate had said in March it would raise US investments by 25 per cent to more than US$55 billion over the next four years, including a separate plant in Wilson, North Carolina. REUTERS