On October 9th, Johnson&Johnson announced plans to invest over $2 billion (approximately RMB 14.1 billion) in Wilson, North Carolina to build an advanced biopharmaceutical manufacturing facility to support its growing portfolio of biologic therapy products in oncology, immunology, and neuroscience.

It is reported that this measure is in line with Johnson&Johnson's broader strategy of submitting or launching over 70 new therapies and product expansions by the end of the next decade. The new facility will be equipped with cutting-edge technology, which will not only enhance global production capacity, but also provide approximately 420 high skilled full-time positions for the local area. The project will begin construction in the first half of 2025.

In August of this year, in order to strengthen its position in the cardiovascular field, Johnson&Johnson announced the acquisition of V-Wave, a company specializing in heart failure treatment technology. Prior to this, Johnson&Johnson acquired for approximately $13.1 billion in April, which will reshape the treatment landscape for cardiovascular disease.

Some analysts believe that Johnson&Johnson may continue to increase its investment in the biopharmaceutical and cardiovascular fields, continuously expanding its product line and market share through research and development innovation and acquisition integration. In the future, there may be more mergers and acquisitions in the industry to achieve resource integration and technological innovation, and enhance the competitiveness of enterprises.

01. Johnson&Johnson increases investment by $2 billion
Dapo Ajayi, Vice President of Innovative Drug Supply Chain at Johnson&Johnson, said, "A strong global supply chain is crucial, and we invest purposefully to ensure that our transformative drugs are reliably and efficiently delivered to patients around the world. We are investing in production capacity and new technologies to enhance our industry-leading capabilities and ensure that future supply chains are resilient.

It is understood that the new factory will be equipped with cutting-edge technology to simplify and optimize the manufacturing process of biologics. In addition to enhancing the company's global production capacity, the Wilson factory will also hire approximately 420 full-time employees in high skilled positions. Johnson&Johnson sees North Carolina as a key region for biopharmaceutical manufacturing, benefiting from a well-developed life science ecosystem and abundant local talent.

The project is scheduled to commence construction in the first half of 2025, with plans to significantly expand the company's manufacturing business scale to meet the growing demand. Once put into operation, the factory is expected to play a critical role in supporting Johnson&Johnson's long-term pipeline and product launch goals, while contributing to the growing life sciences industry in the state.

North Carolina is an important center for biopharmaceutical manufacturing and talent, and we are delighted to join this thriving life sciences ecosystem as part of the Wilson community, "Dapo Ajayi added.

02. The significance of Johnson&Johnson's increased investment
It is worth mentioning that in August this year, in order to strengthen its position in the cardiovascular field, Johnson&Johnson announced the acquisition of V-Wave, a company specializing in heart failure treatment technology. Prior to this, Johnson&Johnson acquired for approximately $13.1 billion in April, which will reshape the treatment landscape for cardiovascular disease.

For Johnson&Johnson, this investment in North Carolina will help enhance its competitiveness in the biopharmaceutical industry, meet the growing market demand, and achieve its long-term product development strategy. Meanwhile, by acquiring V-Wave and Shockwave Medical, Johnson&Johnson has further strengthened its position in the cardiovascular field and expanded its business scope.

For North Carolina, Johnson&Johnson's investment will bring a large number of job opportunities, promote the development of the life science industry, and drive local economic growth.

For the entire industry, Johnson&Johnson's large-scale investments and acquisitions may trigger intensified competition within the industry. Other pharmaceutical companies may increase their research and investment in the biopharmaceutical and cardiovascular fields to maintain competitiveness. This may also promote innovation and development of related technologies, driving progress in the fields of biopharmaceuticals and cardiovascular therapy.

Some analysts believe that Johnson&Johnson will continue to increase its investment in the biopharmaceutical and cardiovascular fields, continuously expanding its product line and market share through research and development innovation and acquisition integration. In the future, there may be more mergers and acquisitions in the industry to achieve resource integration and technological innovation, and enhance the competitiveness of enterprises.

03. Johnson&Johnson's Development Strategy
Public information shows that Johnson&Johnson was founded in 1886 and is one of the most comprehensive and widely distributed medical and health enterprises in the world, with business covering three major fields: medical equipment, pharmaceuticals, and consumer goods. At present, Johnson&Johnson's development strategy mainly manifests in business layout adjustment and focus, innovation driven, merger and acquisition expansion, global market expansion, digital transformation, and sustainable development.

Business layout adjustment and focus
Business Separation: In 2021, Johnson&Johnson announced the separation of its consumer health business into an independent listed company, separate from its original pharmaceutical business. The new Johnson&Johnson remains a diversified pharmaceutical and medical equipment company, while the new consumer health company focuses more on the consumer goods sector. This measure enables both companies to conduct business more targetedly, improve operational efficiency and competitiveness.
Key areas of research and development focus: Since last year, Johnson&Johnson has gradually reduced its focus on cardiovascular and metabolic work, narrowing its research and development focus to three therapeutic fields: oncology, immunology, and neuroscience. These three fields have broad market prospects and unmet medical needs. By increasing research and development investment in these fields, Johnson&Johnson is expected to launch more innovative drugs and treatment plans, occupying a leading position in the market.

Innovation driven
R&D investment: Johnson&Johnson has always attached great importance to R&D innovation, continuously investing funds in the development of new products and the improvement of existing products. For example, in China, Johnson&Johnson is the first multinational enterprise to successfully implement an "end-to-end" research and development model. It has research and development institutions in all three major business areas in China and has established the Johnson&Johnson Asia Pacific Innovation Center in Shanghai to accelerate the development of innovative products in China.
Open Innovation: Johnson&Johnson actively builds an innovation ecosystem, such as establishing the one-stop collaborative innovation platform jlabs in Shanghai in 2019. As one of Johnson&Johnson's four global open innovation platforms, it combines the company's local, Asia Pacific, and global resources, professional knowledge, and regional advantages to support the development of local startups and bring breakthrough medical and health solutions to the global market.

Mergers and acquisitions expansion
Layout in the cardiovascular field: In recent years, Johnson&Johnson has continuously strengthened its position in the segmented cardiovascular market through major acquisitions. In November 2022, Johnson&Johnson acquired the cardiac resuscitation leader Abiomed for $16.6 billion; In November 2023, Johnson&Johnson acquired Laminar for a $400 million advance payment, whose left atrial appendage occlusion technology is used to treat non valvular atrial fibrillation; In 2023, Johnson&Johnson acquired Shockwave for $13.1 billion, the world's first company to provide coronary artery lithotripsy. These acquisitions expanded Johnson&Johnson's product portfolio and technological strength in the field of cardiovascular intervention.
Other field acquisitions: In 2024, Johnson&Johnson completed the acquisition of all outstanding shares of American innovative drug company Ambrx Biopharma to enhance its strength in the biopharmaceutical industry.

Global market expansion
Strengthening the layout of the Chinese market: China is one of the fastest-growing markets for Johnson&Johnson's global business, and Johnson&Johnson continues to increase its investment and business expansion in China. For example, Johnson&Johnson has over 10 legal entities in China, with supply chain bases located in cities such as Beijing, Shanghai, Guangzhou, Suzhou, and Xi'an. At the same time, Johnson&Johnson actively promotes the delivery of Chinese innovation to the global market, pushing products developed in China to the international market.
Market Expansion in Other Regions: Johnson&Johnson has established over 250 subsidiaries in 60 countries worldwide, with products sold in 175 countries and regions. By continuously expanding the global market, the company has expanded its business coverage and market share.

Digital transformation
Johnson&Johnson has proposed a strategy of "jointly building a digital ecosystem and reshaping a healthy future", combining big data, artificial intelligence, surgical robot technology, and other medical and health services to build a digital ecosystem, achieve innovation empowerment, marketing empowerment, and operational empowerment, accelerate the innovation process and achievement transformation, enhance brand awareness, and improve operational efficiency.

Sustainable development
Johnson&Johnson has committed to investing $800 million by 2030 to improve human and global health. Specific measures include increasing transparency in product ingredients, reducing reliance on plastic packaging, and raising awareness of safe sun protection. The company focuses on achieving sustainable development while developing its business.

Source: http://qixieke.com/Font/index/detailPage.html?id=3211-19