Listen to this articleJohnson & Johnson is the latest company to strike a deal with the White House to lower prescription drug costs in exchange for an exemption from U.S. pharmaceutical product tariffs.
The New Brunswick-based drugmaker announced the agreement Jan. 8. It comes as part of President Donald Trump’s “most-favored-nation” pricing policy, which seeks to bring down American medication costs to either the same or lower as other developed countries.
Since calling on the industry last summer to voluntarily reduce costs, the White House has secured deals with 14 companies to cut medicine prices for the government’s Medicaid program and for cash-paying consumers.
The list includes several pharma giants with a New Jersey presence, such as Merck in Rahway, Bristol Myers Squibb in Lawrenceville, Novartis in East Hanover, Sanofi in Morristown and Novo Nordisk in Plainsboro.
Under the terms of the latest announced pact, J&J will offer some of its drugs at lower prices through the soon-to-launch, direct-to-consumer platform TrumpRx.gov. The company also said it will provide Medicaid access at prices comparable to other developed countries.
J&J did not say which products it will include, nor how much the company will discount. The press release noted that specific terms of the agreement remain confidential.
Answering the call
In a statement, J&J Chief Executive Officer and Chairman Joaquin Duato said, “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.”
“I’m proud that Johnson & Johnson is answering President Trump’s call to lower drug prices for everyday Americans while maintaining our role in improving and saving lives and ensuring that the United States continues to lead the world in healthcare innovation,” he said.
Additionally, J&J said it will build a cell therapy plant in Pennsylvania and a drug product manufacturing facility in North Carolina. The construction is part of a pledge announced last year to invest $55 billion toward domestic research & development, technology and manufacturing through 2029.
J&J also reported progress on developing a $2 billion biologics manufacturing facility in Wilson, N.C., and a $2 billion biopharmaceutical manufacturing site in Holly Springs, N.C. The company also said it expects to announce additional U.S. investments later this year.
Amid pressure over the past year from the Trump administration, many American drugmakers have unveiled billions of dollars aimed at boosting domestic capabilities. That has included:
