J&J to invest $2.0b to boost US manufacturing as drug tariffs loom

NEW Aug 21 (Reuters): Johnson & Johnson said on Thursday it would invest $2 billion in North Carolina as it aims to expand its US manufacturing presence amid looming drug import duties proposed by President Donald Trump's administration.

Major drugmakers, including Eli Lilly and AstraZeneca, have also committed to shell out billions of dollars to scale up their US footprint in response to Trump's efforts, including tariff threats.

Earlier this month, Trump said he plans to impose phased-in tariffs for the pharmaceutical sector, which could start small and eventually rise to 250 per cent.

J&J said on Thursday it has reached a 10-year agreement with Tokyo-based contract drug developer Fujifilm Diosynth for its more than 160,000-square-foot manufacturing facility in Holly Springs, North Carolina, which would create about 120 new jobs.

Fujifilm in April had signed a more than $3 billion deal with Regeneron to manufacture and supply drug products for the US-based company at its North Carolina facility for a span of 10 years.