J&J & AbbVie: Why Big Pharma is Onshoring in the US

Pharmaceutical and medical technology companies are accelerating plans to establish production facilities on US soil.

What began as gradual nearshoring efforts has intensified into a comprehensive supply chain restructuring.

This manufacturing migration reflects a convergence of factors including evolving trade regulations, the pursuit of regulatory certainty and the vulnerabilities exposed by recent global supply chain disruptions.

Companies are now prioritising domestic resilience.

According to data from KPMG and PwC, 73% of life sciences executives anticipate increased deal activity in 2026.

The conversation around US-based pharmaceutical production has persisted for several years, yet recent tariff implementation has accelerated decision-making timelines.

Companies are reassessing their global manufacturing networks with renewed urgency to mitigate risks.

Trade policies influence production strategies

On 13 January 2026, Johnson & Johnson entered a voluntary arrangement with US President Donald Trump's administration, committing to reduce medication costs in return for expanded domestic operations.

The agreement positions the company within the "most-favoured-nation" pricing framework and secures exemption from recently implemented tariffs, conditional upon ongoing investment in US manufacturing.

This provides a clear financial incentive for domestic growth.

Joaquin Duato, Chairman and CEO of Johnson & Johnson, explains: "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."

Johnson & Johnson is one of multiple major pharmaceutical companies pursuing this approach.

AbbVie became the 16th significant drugmaker to finalise a similar agreement, pledging US$100bn towards US R&D 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 A. Michael, Chairman and CEO at AbbVie.

Resilient infrastructure and geographic diversification

The transition towards US manufacturing considers tariffs, but also looks to support operational resilience. 

Biopharma companies are increasingly requesting dual-site redundancy across different geographic territories to minimise supply disruption risks.

This approach could provide a buffer against regional instability.

The administration's "most-favoured-nation" framework looks to address what officials characterise as "global freeloading," where international price controls could result in higher costs for American consumers.

Domestic manufacturing could streamline FDA validation processes and quality oversight, which could offer competitive advantages in regulatory approval timelines.

Several organisations are already expanding their physical footprint to capitalise on these benefits.

For example, Celltrion purchased a former Eli Lilly site in New Jersey, with plans to double production capacity by 2030.

This expansion is designed to strengthen its US supply infrastructure and ensure long-term stability.

Long term outlook for domestic capacity

Investment is also concentrating on high-growth therapeutic categories.

BD (Becton, Dickinson and Company) announced a US$110m investment in Nebraska on 13 January 2026 to manufacture advanced glass prefillable syringes, responding to increased demand for GLP-1 treatments.

On 9 January 2026, Novartis revealed its fourth US radioligand therapy manufacturing facility in Florida, forming part of a wider US$23bn investment programme in the country.

Vas Narasimhan, CEO of Novartis, says: "Building this new facility in Florida marks an important step in fulfilling the promise of RLT for patients." He further says: "Radioligand therapy has fundamentally changed how we approach certain cancers."