Johnson & Johnson (J&J) has officially joined the ranks of biopharma giants striking “Most-Favored-Nation” (MFN) drug pricing agreements with the Trump administration. This deal marks a significant step in efforts to control healthcare costs and stimulate domestic manufacturing in the United States.
Core components of the MFN agreement
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Pricing: J&J has committed to offering selected drugs at discounted rates, comparable to prices in other developed nations. These products will be accessible through the direct-to-consumer platform TrumpRx.gov and the Medicaid program.
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Tariff benefits: In exchange for pricing concessions, the company will be exempted from tariffs on its imported products.
Infrastructure investment and job creation Alongside the pricing deal, J&J unveiled specific investment plans as part of its $55 billion commitment through early 2029:
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New facilities: Plans include a cell therapy plant in Pennsylvania and a drug product manufacturing site in North Carolina.
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Workforce: The company is ramping up hiring for hundreds of advanced manufacturing roles at its new facilities and ongoing biomanufacturing hubs, contributing to local economic growth.
Following J&J’s agreement, AbbVie and Regeneron remain the only targeted biopharma majors that have yet to reach similar deals with the current administration.