Johnson & Johnson To Invest $55 Billion In US To Boost Manufacturing, Drug Discovery

Pharmaceutical and medical technology giant Johnson & Johnson JNJ plans to invest more than $55 billion in the U.S. over the next four years.

This initiative, designed to strengthen American manufacturing, R&D, and technological advancements, represents a 25% rise from previous four-year funding levels.

As part of the investment, the company will broaden its presence in the U.S. with the establishment of new facilities and job opportunities.

Johnson & Johnson’s investment will fund the creation of three new manufacturing facilities, along with the expansion of existing ones in the company’s Innovative Medicine and MedTech divisions.

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Additionally, Johnson & Johnson is expanding its technological and research infrastructure to accelerate drug discovery and advancement in areas like oncology, immunology, and robotics.

“Today’s announcements accelerate our nearly 140-year legacy as an American innovation engine tackling the world’s toughest healthcare challenges,” said Chairman and Chief Executive Officer Joaquin Duato.

“Our increased U.S. investment begins with the ground-breaking of a high-tech facility in North Carolina that will not only add U.S.-based jobs but manufacture cutting edge medicines to treat patients in America and around the world.”

Johnson & Johnson is holding a groundbreaking event in Wilson, North Carolina today, to begin construction of a $2 billion, 500,000-square-foot biologics manufacturing plant.

This facility will be used to produce advanced medicines for diseases like cancer and neurological conditions. Once completed, the plant is anticipated to generate 5,000 jobs during its construction phase and create more than 500 permanent positions. Additionally, the project is expected to contribute $3 billion to North Carolina’s economy over the first ten years.

The company’s economic impact in the U.S. is estimated to exceed $100 billion annually.

In January, the company reported a 5.3% sales increase to $22.52 billion and an adjusted EPS of $2.04 for the fourth quarter, both above the consensus estimates.

Price Action: JNJ shares traded lower by 0.15% at $162.77 in premarket at last check Friday.

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