Johnson & Johnson Inks $2 Billion Deal with Fujifilm Diosynth, Bolstering US Manufacturing Presence

Johnson & Johnson (J&J) has announced a significant $2 billion agreement with Fujifilm Diosynth Biotechnologies, marking a substantial investment in US pharmaceutical manufacturing. The 10-year deal will see J&J operate a 160,000-square-foot manufacturing facility at Fujifilm's biomanufacturing campus in Holly Springs, North Carolina.

Expansion of US Manufacturing Capabilities

The agreement is part of J&J's broader strategy to strengthen its US manufacturing presence. In March, the company outlined plans to invest $55 billion in the United States over the next four years, including the construction of three new manufacturing sites and expansion of existing facilities within its medicines and medtech network.

J&J's CEO, Joaquin Duato, emphasized the company's commitment to US manufacturing, stating, "Johnson & Johnson has more manufacturing facilities in the U.S. than in any other country, and we continue to strengthen our presence here." Duato also referenced the recent signing of the One Big Beautiful Bill Act as a catalyst for continued US investment.

Fujifilm's Growing Biomanufacturing Hub

Fujifilm Diosynth's Holly Springs campus, where J&J will operate its new facility, represents a significant investment in biomanufacturing capabilities. The $2 billion campus, which began construction in 2021, was initially billed as the largest end-to-end biologics production plant globally. Fujifilm has since increased its investment in the site by an additional $1.2 billion, with plans to employ 1,400 workers by 2031.

The J&J deal is expected to create approximately 120 new jobs in North Carolina. This follows a similar arrangement announced in April, where Regeneron committed $3 billion for a 10-year agreement to secure space at the Holly Springs site for the production of bulk drug products for its commercial biologics treatments.

Industry-wide Shift Towards US Manufacturing

J&J's investment aligns with a broader trend in the pharmaceutical industry towards increased US manufacturing. This shift comes in the wake of the Trump administration's efforts to impose import tariffs on foreign-made medicines, including a recently confirmed 15% tariff on EU-made innovative drugs.

Several other pharmaceutical giants have announced significant US investment plans, including AstraZeneca, Eli Lilly, Sanofi, and Novartis. These moves reflect the industry's response to changing trade policies and a growing emphasis on domestic production capabilities.