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J&J to Invest $55B in United States to Boost Manufacturing, R&D

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J&J (JNJ - Free Report) announced plans to invest more than $55 billion in the United States over the next four years to boost manufacturing, R&D and technology in the country.  This represents a 25% increase in investment compared to the previous four years. J&J believes that the U.S. economic impact of the increased U.S. investment will exceed $100 billion a year.

The investments begin with the groundbreaking of a high-tech 500,000-square-foot, state-of-the-art biologics manufacturing facility in North Carolina.  J&J expects this facility to create 5,000 construction jobs and more than 500 permanent positions once operational.

In addition, the company will build three new advanced manufacturing facilities and expand several existing plans across its Innovative Medicine and MedTech businesses. The locations of the three facilities were not disclosed.

J&J’s shares have outperformed the industry year to date. The stock has risen 13.1% compared with 6.3% growth of the industry.

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J&J Follows LLY in Boosting U.S. Investments Amid Tariff Threats

Drugmakers are looking to ramp up U.S. investments after reports that Trump plans to impose tariffs on imports of pharmaceutical products in a bid to encourage domestic production.

Last month, Eli Lilly (LLY - Free Report) announced plans to invest $27 billion in building four new manufacturing sites in the United States by 2025, bringing its total domestic manufacturing expansion commitments since 2020 to over $50 billion. The increased manufacturing investment can boost production capacity for Lilly’s medicines, particularly its popular GLP-1 products, Mounjaro and Zepbound.

Pfizer (PFE - Free Report) may be the next in line to make a similar announcement. Earlier this month, the company’s chief executive officer (CEO) Albert Bourla, at a healthcare conference, said that Pfizer is prepared to move some of its overseas manufacturing to the United States amid the tariff threats.

J&J’s Zacks Rank

J&J has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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