Johnson & Johnson Innovative Medicine (J&J) is significantly expanding its US footprint with a $55bn investment over the next four years, as the focus on domestic manufacturing in the US grows.
As part of this initiative, the company has begun construction on a $2bn biologics production site in Wilson, North Carolina, expected to create 500 jobs and generate a $3bn economic impact within its first decade, according to the 21 March announcement.
Three additional manufacturing sites are also planned, though details on their locations and specific functions have yet to be disclosed. In addition to new facilities, J&J will expand several of its existing US sites across its Innovative Medicine and MedTech businesses. J&J’s investment represents a 25% increase over its previous four-year cycle, according to the company.
This move comes as major pharmaceutical companies reassess their global operations. Last month (February 2025), Eli Lilly announced a $27bn expansion across four sites, bringing its total US infrastructure commitments since 2020 to $50bn.
The domestic manufacturing trend is partially driven by government policies aimed at reshoring pharmaceutical manufacturing. The Trump administration has used tariffs and other trade measures to encourage companies to bring operations back to the US, seeking to reduce reliance on overseas production.
Industry groups have expressed mixed reactions to these policies. The Healthcare Distribution Alliance (HDA), which represents pharmaceutical distributors, has warned that tariffs on pharmaceuticals could lead to higher drug costs and supply chain disruptions. However, the organisation also supports federal investment in domestic manufacturing, citing the potential to improve supply chain resilience.
Other big pharma companies continue to expand in the US. UK-based GSK recently acquired US-based biotech firm IDRx for $1.15bn and committed $800m to expand a vaccine drug substance facility and R&D pilot plant in Pennsylvania.
Before the tariffs were officially announced, foreign direct investment (FDI) data from GlobalData reflects a shift towards increased foreign investment into the US pharmaceutical sector. Outbound investment from the US healthcare sector dropped by 53% in 2024 to $3.4bn, while inbound investment surged by 837% to $6.6bn.
GlobalData is the parent company of Pharmaceutical Technology.
“J&J boosts US operations with $55bn investment” was originally created and published by Pharmaceutical Technology, a GlobalData owned brand.
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