Dive Brief:
- Johnson & Johnson has signed a $2 billion deal to secure space at Fujifilm Biotechnologies’ Holly Springs, North Carolina, facility, as part of a larger strategy to invest heavily in U.S. manufacturing in the coming years.
- The 10-year deal will expand the biopharma giant’s manufacturing capacity with a new 160,000-plus-square-foot facility, according to a news release. It will also create 120 jobs in the Raleigh area.
- The investment is part of a larger $55 billion commitment to support U.S. manufacturing, technology and research and development projects over the next four years. J&J said it plans to share more expansion details in the coming months.
Dive Insight:
J&J and Regeneron will be some of the first tenants of Fujifilm Biotechnologies’ Holly Springs facility when it opens later this year.
The recent deal allows J&J to manufacture “the vast majority” of its advanced medicines in the United States to meet national demand, the New Brunswick, New Jersey-based company said. J&J manufactures medicines for the oncology, immunology, neuroscience and cardiopulmonary fields, according to its website.
Currently, J&J operates 23 U.S. facilities, comprising about a third of its global manufacturing footprint, according to its 2024 annual report. The company has been building out its domestic operations as tariffs complicate international trade and more tax incentives become available for manufacturers that do business in the U.S.
“It's hard to know what is going to happen ultimately with tariffs,” J&J CEO Joaquin Duato said during a July 16 earnings call. “But what we do know for sure is that the tax policies that just passed are already creating American jobs and driving innovation.”
The current administration's tax law enhanced manufacturers’ ability to deduct business expenses for costs related to domestic R&D and certain production properties.
Fujifilm Biotechnologies’ Holly Springs facility will be the company’s largest cell culture biopharmaceutical facility for contract development and manufacturing organization manufacturing in North America, according to its website. Parent company Fujifilm has invested more than $3.2 billion into the project so far, with plans to bring 1,400 jobs to the area by 2031.
Earlier this year, Regeneron, a manufacturer of large bulk drugs, inked a $3 billion supply deal with Fujifilm Biotechnologies that is expected to nearly double its U.S. manufacturing capacity as tariffs stir global tensions.
Last month, President Donald Trump threatened tariffs of up to 250% on pharmaceutical imports over the next year and a half. However, this is likely to vary by country. Most recently, the U.S. struck a deal to cap its tariffs at 15% for EU pharmaceuticals.
In addition to the deal with Fujifilm Biotechnologies, J&J is moving forward with other U.S. projects, including construction of its $2-billion-plus facility in Wilson, North Carolina. It is also investing in R&D infrastructure aimed at developing lifesaving treatments in oncology, neuroscience and other areas of study, according to the Aug. 21 news release.
