J&J Agreement Brings 15 of 17 Pharma Companies Into Trump's Drug-Pricing Effort

Johnson & Johnson announced a voluntary agreement with the Trump Administration on drug pricing aimed at improving access to medicines and lowering costs for millions of American patients.¹ The agreement, which meets President Trump’s requests to the pharmaceutical industry, also provides the company’s products with an exemption from tariffs.

“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 US economy,” Joaquin Duato, chairman and chief executive officer of Johnson & Johnson, said in the announcement.

Last month, 9 pharmaceutical companies came to an agreement with the administration: Amgen, Boehringer Ingelheim, Bristol Myers Squibb, Roche’s Genentech unit, Gilead, GSK, Merck, Novartis, and Sanofi.² Until today, Johnson & Johnson had been among the 3 companies that had yet to come to an agreement, leaving AbbVie and Regeneron as the remaining companies.

With Johnson & Johnson’s participation, 15 of 17 companies contacted by the administration over the summer have now signed on. Earlier deals had been announced with Pfizer, AstraZeneca, EMD Serono, Eli Lilly, and Novo Nordisk.

As part of the agreement, Johnson & Johnson will participate in TrumpRx.gov, a direct-to-patient platform enabling Americans to purchase the company’s medicines at discounted rates.¹

Drug Pricing and Direct-to-Consumer Access

The new agreements have a 2-track structure: first, the participating manufacturers will sell most of their drugs to Medicaid at prices comparable to those in European markets, where governments typically negotiate far more aggressively than the United States.² Although Medicaid already receives the lowest domestic price available by law, officials have said that the new commitments could generate additional savings, particularly for drugs that historically cost more in the United States despite global parity elsewhere.

Second, the companies will create online storefronts that allow Americans to purchase certain medications directly, bypassing insurers. The Trump administration plans to launch TrumpRx.gov as a centralized portal that guides consumers to company-specific sites.

In return for participating, companies will receive 3-year exemptions from any tariffs on imported pharmaceuticals that Trump may impose. The president has repeatedly threatened such tariffs as leverage, but has not enacted them. According to The New York Times, avoiding those penalties has been a strong incentive, as has avoiding the possibility of strict regulation.³

The administration’s push for voluntary deals has unfolded alongside work on potential drug-pricing regulations. Last year, officials went through the procedural steps for new rules, including proposals related to Medicare drug spending and global price benchmarking. Notices showing the completion of key regulatory reviews were posted online last month, though no final rules have been unveiled.

Johnson & Johnson Invests in Therapeutic Access

In addition to improving access, Johnson & Johnson continues to advance its previously announced $55 billion US investment to support domestic manufacturing, research and development, and technology through 2029.¹ Recent initiatives include the construction of a next-generation cell therapy manufacturing site in Pennsylvania and a state-of-the-art drug product manufacturing facility in North Carolina.

Construction is ongoing on a $2 billion biologics manufacturing facility in Wilson, North Carolina, expected to create approximately 5000 skilled jobs, Johnson & Johnson stated. In September, the company secured a 160,000+ square foot biopharmaceutical manufacturing site in Holly Springs, North Carolina, projected to create an additional 120 jobs over the next decade.

Johnson & Johnson said it anticipates announcing further US investments later this year.

“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 health care innovation,” Duato stated.

References

1. Johnson & Johnson reaches agreement with U.S. government to improve access to medicines and lower costs for millions of Americans; delivers on U.S. manufacturing and innovation investments. News release. Johnson & Johnson. January 9, 2026. Accessed January 9, 2026. https://www.jnj.com/media-center/press-releases/johnson-johnson-reaches-agreement-with-u-s-government-to-improve-access-to-medicines-and-lower-costs-for-millions-of-americans-delivers-on-u-s-manufacturing-and-innovation-investments
2. Grossi G. Trump strikes 9 new pricing agreements as drugmakers navigate tariff, regulatory pressure. AJMC^®. December 19, 2025. Accessed January 9, 2026. https://www.ajmc.com/view/trump-strikes-9-new-pricing-agreements-as-drugmakers-navigate-tariff-regulatory-pressure
3. Robbins R. Trump announces pricing deals with nine drugmakers. The New York Times. December 19, 2025. Accessed December 19, 2025. https://www.nytimes.com/2025/12/19/health/trump-drug-pricing-deals