Johnson & Johnson Reaches Drug Pricing Deal with U.S. Government

Johnson & Johnson has reached an agreement with the U.S. government to lower prices on select prescription drugs, marking a significant development in ongoing negotiations between the pharmaceutical industry and federal authorities over drug affordability and trade policy.

According to the company, the agreement includes commitments to reduce prices for certain medicines sold in the U.S. market, while allowing Johnson & Johnson to receive exemptions from potential tariffs tied to pharmaceutical imports. The deal comes amid heightened political pressure on drugmakers to curb rising healthcare costs and increase domestic manufacturing capacity.

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In parallel with the pricing agreement, Johnson & Johnson announced plans to expand its manufacturing footprint in the United States. The company said the investment aims to strengthen supply chain resilience, improve production efficiency, and support long-term access to essential medicines. While financial details of the expansion were not fully disclosed, the move aligns with broader U.S. policy efforts to encourage onshore pharmaceutical production.

The agreement reflects a growing willingness among large pharmaceutical companies to negotiate pricing frameworks directly with government authorities, as the Biden administration continues to advance policies designed to reduce drug costs for American patients. Industry analysts note that such arrangements may become more common as regulatory scrutiny intensifies and governments seek leverage through trade and reimbursement mechanisms.

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Johnson & Johnson emphasized that the deal allows it to maintain sustainable innovation while responding to affordability concerns. The company added that continued investment in research, development, and manufacturing remains a core priority despite pricing pressures.

The announcement was made as healthcare executives and investors gathered in San Francisco for the annual J.P. Morgan Healthcare Conference, where pricing reform, regulatory uncertainty, and manufacturing localization are among the dominant themes shaping discussions across the sector.

Source: Reuters, Johnson & Johnson reaches deal with U.S. government to lower drug prices, January 9, 2026.