Johnson & Johnson Commits $55B to U.S. Healthcare Expansion
According to an announcement by the pharmaceutical company, Johnson & Johnson (JNJ) will invest over $55 billion in various healthcare sectors in the U.S. during the next four years, including a major North Carolina facility. That would mark an increase of 25 percent compared with the previous four years.
The investments will be spread across research and development, innovation powerhouse, announced manufacturing, and technology. This is headlined by a $2 billion biologics manufacturing development facility in Wilson, North Carolina, which recently broke the ground. The 500,000-square-foot site is expected to create 5,000 jobs during the construction phase and more than 500 employment opportunities in the state. Moreover, it is set to expand medication capacity for those with neurological diseases and cancer and provide an estimated $3 billion economic impact during the first decade open in North Carolina.
Aside from the specific development in Wilson, JNJ is planning three more manufacturing facilities and improving its locations under its Innovative Medicine and MedTech segment. Also, the New Brunswick, New Jersey-based firm plans to invest specifically in speeding up drug development and research for treatments ranging from cardiovascular disease to neuroscience, oncology, robotic surgery, and immunology.
"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," JNJ said in a statement.
Since the 2017 Tax Cuts & Jobs Act was enacted, the firm noted it has continued to increase investments in native land.
Also, JNJ follows others that have committed major dollars on U.S. soil this year. This includes Apple's $500 billion for manufacturing and training, TSMC's $100 billion for chip making, and Nvidia's hundreds of billions of dollars for manufacturing operations. This was all confirmed by a recent report from The White House.
Meanwhile, the life sciences space faces upcoming challenges, according to a recent analysis from Savills. This includes rising costs caused by tariffs, regulatory uncertainty, and a potential risk of an economic slowdown.
Source: GlobeSt/ALM