Johnson & Johnson to Invest $55 Billion in U.S. Healthcare Infrastructure
By Thomas Yuan

WILSON, N.C. — In a sweeping move to reinforce America’s life sciences sector, Johnson & Johnson announced on March 21 that it will invest more than $55 billion in its pharmaceutical and medical technology business across the United States over the next four years — a 25 percent increase from its previous investment cycle.

The investment, the company said, aims to bolster U.S. manufacturing, research and development, and innovation in fields like oncology, neuroscience, and robotic surgery. It comes as part of a broader effort to maintain America’s global leadership in medical supply and health products, at a time when governments are emphasizing domestic production in response to geopolitical tensions and lessons learned from the pandemic.

“We are committed to addressing the world’s toughest healthcare challenges,” said Joaquin Duato, Chairman and CEO of Johnson & Johnson, during a groundbreaking ceremony in Wilson, North Carolina, where the company is constructing a $2 billion biopharmaceutical plant. “This will not only increase employment opportunities in the United States but also produce cutting-edge drugs for patients here and around the world.”

Groundbreaking in North Carolina

The Wilson facility — covering 500,000 square feet — is expected to manufacture next-generation therapies for cancer, autoimmune disorders, and neurological conditions. It marks a cornerstone in Johnson & Johnson’s aggressive expansion plan, which also includes three advanced manufacturing facilities and several upgrades to existing plants. Specific locations for these additions have not yet been disclosed.

The broader $55 billion investment will support R&D across high-growth areas including cardiovascular disease, immunology, and digital surgery. The company attributed its ability to scale this investment to favorable conditions stemming from the 2017 Tax Cuts and Jobs Act and praised federal initiatives that support U.S.-based manufacturing.

Surge of Domestic Investment

Johnson & Johnson’s announcement comes amid a wave of domestic reinvestment by major players in the life sciences industry. Novo Nordisk said last year it would invest $4.1 billion to build a new facility in North Carolina. Eli Lilly announced plans to double its U.S. investment, surpassing $50 billion since 2020. BD (Becton Dickinson), another medical technology giant, is expanding its U.S. injection manufacturing by more than 40 percent.

“This is a landmark commitment — not just for Johnson & Johnson, but for the entire healthcare ecosystem,” said Scott Whitaker, President and CEO of AdvaMed, a leading medical technology association. “It strengthens America’s position as the global leader in medical technology, where 95 percent of R&D still occurs domestically.”

Medical technology supports nearly three million direct and indirect jobs in the U.S., with average salaries 37 percent above the national median, according to AdvaMed data.

A Year of Strategic Expansion

The Wilson facility was first previewed in late 2024, part of a string of strategic moves by Johnson & Johnson to ramp up its U.S. operations. Last year, the company acquired Shockwave Medical for $13.1 billion — gaining access to the only commercial intravascular coronary lithotripsy (IVL) platform available globally, used in treating coronary artery disease (CAD) and peripheral artery disease (PAD).

Just months later, it signed a deal to acquire V-Wave Ltd., a startup focused on heart failure treatments, for a potential total of $1.7 billion including milestone payments.

The acquisitions signal a pivot toward high-growth therapeutic areas. Analysts see these moves as part of a larger strategy to expand the company’s medical supply footprint and fuel its innovation pipeline with advanced health products.

Internally, Johnson & Johnson is also reorganizing. Beginning January 1, 2025, its Surgery Division in China now operates six specialized departments, including a newly formed Robotics and Digitalization Division. The company has also advanced a global restructuring plan, reporting $319 million in related costs since 2023.

Medical Technology Momentum

The company’s medical technology business — now operating under a unified brand unveiled in 2023 — reported $31.9 billion in revenue for 2024, a 4.8 percent year-over-year increase. The division was fueled by strong demand for cardiovascular devices, particularly in electrophysiology and surgical solutions.

Sales of Abiomed devices, acquired in a previous transaction, rose 14.5 percent to $1.5 billion. Revenue from Shockwave Medical hit $564 million. Overall, cardiovascular revenue reached $7.7 billion, a 21.4 percent jump from the previous year.

In February, Johnson & Johnson’s China division launched the HARMONIC® 7s ultrasonic surgical knife, integrating smart chips and adaptive tissue algorithms. The device, built at the company’s Suzhou facility, is designed to coagulate blood vessels up to 7mm and improve surgical precision. With over ten million procedures performed using Harmonic tools in China alone, the release is expected to significantly enhance market share.

The Road Ahead

Johnson & Johnson's aggressive reinvestment in the U.S. signals a commitment not only to growth, but also to resilience — building out infrastructure for high quality health products, research capabilities, and domestic supply chains.

With the life sciences sector evolving rapidly — from biologic therapy to AI-driven diagnostics — the company’s $55 billion bet underscores a belief that the next chapter of American healthcare innovation will be written on home soil.

Thomas Yuan is a contributor covering health tech, pharmaceuticals, and global investment in medical innovation.

Source: https://news.yaozh.com/archive/45183.html