By Kimberley Kao
Johnson & Johnson has agreed to lower the prices of medicines that certain U.S. patients pay, making it the latest pharmaceutical company to strike a pact with the Trump administration.
The healthcare conglomerate said in a statement Thursday that it has reached an agreement with the U.S. government to improve access to medicines and lower costs for millions of American patients. The agreement provides the company's pharmaceutical products an exemption from tariffs, it said.
"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 U.S. economy," said Joaquin Duato, chairman and chief executive of Johnson & Johnson.
"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," Duato said.
The agreement follows similar drug-pricing deals between the Trump administration and companies like GSK, Merck and Novartis. The latest deal will ensure that American patients get access to medicines at comparable prices to other developed countries, Johnson & Johnson said.
Under the terms of the agreements, the prices offered by the companies would apply to the U.S. Medicaid program for lower-income patients and the planned direct-to-patient platform, TrumpRx.gov.
Johnson & Johnson also said that it is planning two new U.S. manufacturing facilities as part of a $55 billion investment announced earlier. Construction is progressing on its $2 billion biologics manufacturing facility in Wilson, N.C., which will create about 5,000 skilled jobs in the state, it said.
The company expects to announce additional U.S. investments later this year.
Write to Kimberley Kao at kimberley.kao@wsj.com
(END) Dow Jones Newswires
01-08-26 2133ET
