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J&J Joins White House Drug-Price Pact, Wins Tariff Relief

Key terms remain undisclosed, leaving the scope of savings unclear.

Overview

  • Johnson & Johnson said it reached a deal with the Trump administration to cut U.S. medicine costs in exchange for exemptions from tariffs.
  • The company will offer steep cash-pay discounts via the planned TrumpRx.gov platform and provide Medicaid pricing comparable to other developed countries.
  • J&J did not specify which drugs are covered or the revised price levels included in the agreement.
  • As part of a previously announced $55 billion U.S. investment plan, J&J plans two new manufacturing facilities in North Carolina and Pennsylvania and expects to detail additional projects later this year.
  • The agreement follows December pacts the administration struck with nine other major drugmakers aimed at bringing U.S. prices closer to those in wealthy countries.