Johnson & Johnson has reached a voluntary agreement with the Trump Administration to join TrumpRx, a direct-to-patient platform with a goal to lower US drug prices and align them with that of their European counterparts.¹

In exchange for joining the program, J&J will be exempt 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,” noted Joaquin Duato, J&J’s chairman and CEO.¹ “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 healthcare innovation.”

TrumpRx expands big pharma participation

Since President Trump’s reveal of TrumpRx in late September,² 15 companies have agreed to join the government-run website. Besides J&J, the most recent additions came last month, when the president held a briefing³ in which he revealed nine additional Big Pharma participants, including:

1. Amgen
2. Boehringer Ingelheim
3. Bristol-Myers Squibb
4. Genentech
5. Gilead
6. GSK
7. Merck
8. Novartis
9. Sanofi

During the press event, Trump also mentioned that he had reached new agreements with various European leaders to confirm that drug prices in those respective nations were consistent with those in the US, using the threat of levies to help negotiate.

What the TrumpRx agreement means for drug pricing and patient access

As for J&J, the company will be working with the current administration to prioritize drug affordability and patient access, signifying that by participating in TrumpRx, patients in the US will be able to purchase J&J meds at “significantly discounted” prices.¹ Access to Medicaid will also come at a similar price compared with other countries.

Johnson & Johnson reinforces US manufacturing and investment strategy

Meanwhile, the company continues to stand by its $55 billion pledge to support domestic manufacturing, research and development, and tech investments by 2029. This past August, the company announced $2 billion plans to boost its North Carolina presence by constructing a 160,0000-plus-square-foot manufacturing facility at FUJIFILM’s new biopharmaceutical manufacturing site in Holly Springs, NC.⁴

“Johnson & Johnson has more manufacturing facilities in the US than in any other country, and we continue to strengthen our presence here,” said Duato at the time of the announcement.⁴ “With the recent signing of the One Big Beautiful Bill Act, we continue to expand our investment in the US to lead the next era of healthcare innovation.”

Policy shifts, OBBA, and the broader pharma market impact

Also known as the OBBA, the One Big Beautiful Bill Act reshapes prescription drug spending, while pushing pharma companies to mitigate its potential impact on innovation, R&D investment, and M&A activity.

“Starting out with the One Big Beautiful Bill, I kind of look at a couple things that are happening at the same time,” explained Philip Sclafani, PwC's pharmaceutical and life sciences lead, in a video interview⁵ with Pharma Commerce.

… “We think about those patients unfortunately not being able to get all the prescriptions they would want, spending and pharma company revenues going down there. On the other side, we do see significant innovation coming in from newer therapies—obviously GLP-1s continuing to grow, and others—so I think it's important to look at the totality.”

Also in the works for J&J are two additional US production plants, featuring a cell therapy manufacturing facility in Pennsylvania, along with a product manufacturing facility in North Carolina.¹

References

1. Johnson & Johnson Reaches Agreement with US Government to Improve Access to Medicines and Lower Costs for Millions of Americans; Delivers on US Manufacturing and Innovation Investments. Johnson & Johnson. January 8, 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#:~:text=New%20Brunswick%2C%20N.J.%20%E2%80%93%20JANUARY%208,for%20millions%20of%20American%20patients.

2. Hollan M. Pfizer Announces Agreement with Trump Administration to Lower Prices, Join TrumpRx, and Avoid Tariffs. Pharmaceutical Executive. September 30, 2025. Accessed January 9, 2026. https://www.pharmexec.com/view/trump-announce-government-direct-patient-website-report

3. Hollan M. President Trump Announces Nine More TrumpRx Participants. Pharmaceutical Commerce. December 22, 2025. Accessed January 9, 2026. https://www.pharmaceuticalcommerce.com/view/president-trump-announces-nine-more-trumprx-participants

4. Saraceno N. Johnson & Johnson Commits $2 Billion to North Carolina Manufacturing Expansion. Pharmaceutical Commerce. August 21, 2025. Accessed January 9, 2026. https://www.pharmaceuticalcommerce.com/view/johnson-johnson-commits-2-billion-north-carolina-manufacturing-expansion

5. Saraceno N. Facing a Crossroads. Pharma Commerce. August 5, 2025. Accessed January 9, 2026. https://www.pharmaceuticalcommerce.com/view/facing-a-crossroads