Johnson & Johnson Increases U.S. Investment to More than $55 Billion Over the Next Four Years

Rhea-AI Summary

Johnson & Johnson (NYSE: JNJ) has announced plans to invest more than $55 billion in U.S. manufacturing, R&D, and technology over the next four years, marking a 25% increase compared to the previous four-year period.

The investment includes the construction of four new manufacturing facilities, starting with a groundbreaking in North Carolina for a $2 billion+ biologics facility. The 500,000 square foot North Carolina site will support approximately 5,000 construction jobs, create over 500 permanent positions, and generate a $3 billion impact across the state in its first decade of operations.

The comprehensive investment plan encompasses:

• Three additional advanced manufacturing facilities and expansion of existing sites
• R&D infrastructure development for treatments in oncology, neuroscience, immunology, cardiovascular disease, and robotic surgery
• Enhanced technology investments for drug discovery and development

The company's total U.S. economic impact is estimated to exceed $100 billion annually.

Positive

• 25% increase in U.S. investment compared to previous four-year period
• Construction of four new manufacturing facilities expanding production capacity
• Creation of 500+ permanent jobs and 5,000 construction jobs in North Carolina
• $3 billion economic impact expected in North Carolina over first 10 years
• Expansion of R&D infrastructure for multiple therapeutic areas

Negative

• None.

Insights

Financial Analyst

Johnson & Johnson's announcement of a $55+ billion U.S. investment over the next four years represents a substantial capital allocation strategy that signals long-term confidence in their growth trajectory. The 25% increase compared to their previous four-year investment demonstrates an acceleration in their domestic expansion plans rather than mere continuity.

The commitment to four new advanced manufacturing facilities, particularly the $2+ billion biologics facility in North Carolina, establishes significant infrastructure that will bolster J&J's production capabilities for next-generation medicines. With 500 permanent positions and a projected $3 billion economic impact in North Carolina alone during its first decade, this investment strengthens their manufacturing footprint in high-margin biological therapeutics.

What's particularly noteworthy is J&J's comprehensive approach, balancing manufacturing expansion with substantial R&D infrastructure investments across high-growth therapeutic areas including oncology, neuroscience, and immunology. This dual-pronged strategy enhances both near-term production capacity and long-term pipeline development.

For investors, this capital deployment reinforces J&J's position as healthcare's "most comprehensive innovation powerhouse" with unmatched capabilities across pharmaceuticals and medical technology. The scale of investment demonstrates management's conviction in their future product pipeline and reflects their strategic emphasis on maintaining leadership across multiple healthcare segments.

Healthcare Industry Analyst

J&J's ambitious $55 billion U.S. investment plan strategically reinforces their unique cross-sector positioning in healthcare. The company's emphasis on biologics manufacturing – particularly the new North Carolina facility – reflects the industry's broader shift toward complex biological therapies that typically command premium pricing and face less generic competition than traditional small-molecule drugs.

The focus on manufacturing capacity for treatments in oncology, immunology, and neurological diseases targets three of healthcare's most lucrative and rapidly evolving therapeutic areas. This manufacturing expansion will provide J&J crucial flexibility to quickly scale production of pipeline assets upon approval, potentially accelerating time-to-market for breakthrough therapies.

Equally significant is the substantial R&D infrastructure investment, which will enhance J&J's already formidable research capabilities. The explicit mention of robotic surgery among their investment priorities signals continued commitment to their MedTech segment, where surgical robotics represents one of the highest-growth and highest-margin opportunities.

This comprehensive investment strategy leverages J&J's unique advantage: the ability to pursue integrated solutions across pharmaceutical and medical device sectors. No competitor can match their capability to "deliver best-in-class solutions for patients at every step of their journeys," as they correctly note. This creates multiple paths to commercial success while diversifying risk across various healthcare subsectors, giving investors exposure to multiple high-growth areas through a single, established company.

Investment builds on almost 140-year legacy of improving and saving lives and supporting American jobs

Includes four planned new manufacturing facilities, with ground-breaking today in North Carolina on $2 billion+ facility

Total Company U.S. economic impact estimated to be more than $100 billion per year

NEW BRUNSWICK, N.J.--(BUSINESS WIRE)-- Today, Johnson & Johnson (NYSE: JNJ) (the “Company”), healthcare’s leading, most comprehensive innovation powerhouse, announced manufacturing, research and development, and technology investments of more than $55 billion in the United States over the next four years. This represents a 25% increase in investment compared to the previous four years and builds upon the Company’s already elevated U.S. investment levels resulting from the passage of the 2017 Tax Cuts & Jobs Act.

“Today’s announcements accelerate our nearly 140-year legacy as an American innovation engine tackling the world's toughest healthcare challenges,” said Joaquin Duato, Chairman and Chief Executive Officer, Johnson & Johnson. “Our increased U.S. investment begins with the ground-breaking of a high-tech facility in North Carolina that will not only add U.S.-based jobs but manufacture cutting edge medicines to treat patients in America and around the world."

$55 Billion Investment Supports American Innovation & Manufacturing

In addition to the facility in Wilson, North Carolina, the Company’s increased investment in the U.S. over the next four years includes:

• Three new advanced manufacturing facilities and the expansion of several existing sites across the Company’s Innovative Medicine and MedTech businesses that will create high-paying, high-technology jobs. The Company will share further information on these sites once available.
• Significant investments in extensive R&D infrastructure aimed at developing lifesaving and life-changing treatments in areas such as oncology, neuroscience, immunology, cardiovascular disease, and robotic surgery.
• Increased technology investments to help make drug discovery and development faster, support workforce training and enhance our business operations.
• With its increased investment over the next four years, the Company’s U.S. economic impact will build upon its already estimated more than $100 billion per year.¹

Groundbreaking Today in North Carolina Kickstarts U.S. Investment

The North Carolina investment creates jobs starting today in Wilson, North Carolina, where the Company is officially breaking ground on its new, 500,000 square foot, state-of-the-art biologics manufacturing facility.

The North Carolina facility will:

• Expand our capacity to manufacture next-generation medicines for people living with cancer, immune-mediated and neurological diseases in America and around the world.
• Support approximately 5,000 jobs during construction and create over 500 positions in North Carolina.
• Create a $3 billion impact across the state in the first 10 years of operations.

Johnson & Johnson has more manufacturing facilities in the U.S. than in any other country and is a leading investor in American innovation and R&D. With a focus on pharmaceuticals and medical technology, the Company stands alone in its ability to impact the full spectrum of disease. From cardiology to cancer, mental health to vision, cell therapies to robotics, the depth and breadth of Johnson & Johnson’s expertise and capabilities is unique. No company can match Johnson & Johnson’s ability to deliver best-in-class solutions for patients at every step of their journeys.

About Johnson & Johnson:

At Johnson & Johnson, we believe health is everything. Our strength in healthcare innovation empowers us to build a world where complex diseases are prevented, treated, and cured, where treatments are smarter and less invasive, and solutions are personal. Through our expertise in Innovative Medicine and MedTech, we are uniquely positioned to innovate across the full spectrum of healthcare solutions today to deliver the breakthroughs of tomorrow, and profoundly impact health for humanity. Learn more at www.jnj.com.

Cautions Concerning Forward-Looking Statements

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: challenges and uncertainties inherent in product research and development, including the uncertainty of clinical success and of obtaining regulatory approvals; uncertainty of commercial success; manufacturing difficulties and delays; competition, including technological advances, new products and patents attained by competitors; challenges to patents; product efficacy or safety concerns resulting in product recalls or regulatory actions; changes in behavior and spending patterns of purchasers of health care products and services; changes to applicable laws and regulations, including global health care reforms; and trends toward health care cost containment. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s most recent Annual Report on Form 10-K, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and in Johnson & Johnson’s subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

¹ Estimated impact as calculated by an external economic analysis.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250321506294/en/

Media contact:

media-relations@its.jnj.com

Investor contact:

investor-relations@its.jnj.com

Source: Johnson & Johnson

FAQ

What is the total value of Johnson & Johnson's (JNJ) new U.S. investment plan?

Johnson & Johnson plans to invest more than $55 billion in U.S. manufacturing, R&D, and technology over the next four years.

How many jobs will JNJ's new North Carolina facility create?

The North Carolina facility will support 5,000 jobs during construction and create over 500 permanent positions.

What is the expected economic impact of JNJ's North Carolina facility?

The facility is expected to create a $3 billion impact across North Carolina in its first 10 years of operations.

How does JNJ's new investment compare to its previous spending?

The $55 billion investment represents a 25% increase compared to JNJ's investment in the previous four years.

What therapeutic areas will JNJ's new investments focus on?

The investments will focus on oncology, neuroscience, immunology, cardiovascular disease, and robotic surgery.