Johnson & Johnson commits USD55B to US manufacturing expansion amid tariff concerns

USA—Johnson & Johnson announced plans to invest more than USD 1 billion in building a next-generation cell therapy production facility in Montgomery County, Pennsylvania.

The drugmaker revealed this move on February 18 as part of its broader strategy to strengthen domestic manufacturing operations while addressing potential pharmaceutical tariffs from the Trump administration.

The new facility will generate approximately 500 permanent biomanufacturing positions once operational.

Construction alone will create over 4,000 jobs during the development phase.

However, the company has not disclosed a completion timeline or specified which cutting-edge cell therapy technologies it plans to deploy at the site.

Part of massive domestic investment strategy

This announcement builds on J&J’s substantial USD 55 billion commitment to U.S. operations, which the New Jersey-based pharmaceutical giant unveiled last March.

The investment package includes plans to construct three new domestic manufacturing sites while expanding existing facilities across its drug and medical technology network.

J&J provided additional clarity on its investment priorities when it signed a drug-pricing agreement with the White House last month.

The company confirmed that its funding would support both the Pennsylvania cell therapy plant and a new drug product manufacturing facility in North Carolina.

Big pharma responds to tariff threats

The company’s USD 55 billion pledge positions it among the most aggressive investors in Big Pharma’s recent domestic expansion wave.

Multiple medicine makers announced similar commitments last year to preempt proposed import duties on pharmaceuticals.

Several companies reinforced these production commitments through “most favored nation” drug pricing deals, which provided additional tariff protection.

North Carolina emerges as manufacturing hub

Beyond the newly announced North Carolina plant, J&J is already developing a USD 2 billion, 500,000-square-foot biologics facility in the state.

Last year, the company also secured long-term capacity through a USD2 billion agreement with contract manufacturer Fujifilm Biotechnologies, whose massive biomanufacturing campus operates in Holly Springs, North Carolina.

Carvykti drives cell therapy expansion

J&J currently markets Carvykti, a CAR-T cell therapy for multiple myeloma, through its partnership with Legend Biotech.

The personalized immunotherapy received approval in early 2022 and nearly doubled its 2025 sales to USD 1.9 billion, surpassing blockbuster status.

Like other CAR-T therapies, Carvykti has faced supply constraints since launch.

J&J and Legend doubled their investment in a New Jersey cell therapy plant in 2022 and partnered with Novartis for manufacturing support.

The partners also committed roughly USD 150 million last year to expand a plant in Ghent, Belgium, with construction expected to begin in late 2025 and be completed by 2028.