J&J Cuts Deal With Trump’s White House To Slash Drug Prices And Dodge Tariffs

The company will also provide U.S. Medicaid programs access to medicines at prices comparable to those in other developed countries.

• JNJ agreed to drug discounts and tariff exemptions under a White House deal.
• The agreement builds on its existing $55 billion U.S. manufacturing and R&D plan.
• New facilities add to projects already underway in North Carolina and Pennsylvania.

Johnson & Johnson (JNJ) said on Thursday it has reached a voluntary agreement with the U.S. government to expand access to medicines, lower drug costs for American patients, and secure exemptions from U.S. tariffs on its pharmaceutical products, while advancing its domestic manufacturing plans.

Drug Pricing And Tariff Exemptions

As part of the deal, JNJ will allow Americans to buy medicines at significantly discounted rates through TrumpRx.gov, a government-backed direct-to-patient platform. The company will also provide U.S. Medicaid programs access to medicines at prices comparable to those in other developed countries.

The deal grants JNJ’s pharmaceutical products exemptions from U.S. tariffs and aligns with the administration’s “most-favored-nation” pricing framework.

“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,” CEO Joaquin Duato said in a statement. 

US Manufacturing Commitments

JNJ said the agreement builds on its previously announced $55 billion U.S. investment plan through early 2029, which focuses on expanding domestic manufacturing, research and development, and technology. 

As part of the plan, the company announced two additional U.S. manufacturing facilities, including a cell therapy site in Pennsylvania and a drug product manufacturing facility in North Carolina. Construction is already underway at the company’s $2 billion biologics facility in Wilson, North Carolina, a project expected to support around 5,000 manufacturing and construction jobs. 

Separately, JNJ has committed $2 billion over the next 10 years to a biopharmaceutical site in Holly Springs, North Carolina, which is expected to create about 120 jobs. The company said it expects to announce further U.S. investments later this year.

White House Drug Deals Expand

The announcement follows similar agreements struck last month between the White House and other major drugmakers, including Amgen, Bristol Myers Squibb, Pfizer, Gilead Sciences, GSK, Merck, Novartis, Roche and Sanofi.

The deals require steep discounts through TrumpRx, most-favored-nation pricing for Medicaid, expanded U.S. manufacturing, and restrictions on stockpiling drugs to avoid tariffs.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment was ‘bearish’ amid ‘high’ message volume.

JNJ’s stock has risen 49% over the past 12 months.

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