How Pharmaceutical Onshoring is Reshaping Digital Health

Tariff implementation in early 2025 has accelerated decision-making timelines for pharmaceutical companies reassessing their global manufacturing networks. On 13 January 2025, Johnson & Johnson entered a voluntary arrangement with the Trump administration, committing to reduce medication costs in return for expanded domestic operations. The agreement positions J&J within the “most-favoured-nation” pricing framework and secures exemption from recently implemented tariffs, conditional upon ongoing investment in US manufacturing.

“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 US economy,” explains Joaquin Duato, Chairman and CEO of Johnson & Johnson.

J&J is one of multiple major pharmaceutical companies pursuing this approach. AbbVie became the 16th significant drugmaker to finalise a comparable agreement, pledging US$100bn towards US research and development and manufacturing throughout the next decade.

“AbbVie’s mission is to make a remarkable impact for the patients we serve around the world through our innovative medicines,” says Robert Michael, Chairman and CEO at AbbVie.

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