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A new $2 billion agreement between Johnson & Johnson and Fujifilm Diosynth Biotechnologies is reinforcing the U.S. government’s push to rebuild domestic drug manufacturing capacity. The ten‑year deal will secure large‑scale production capacity at Fujifilm’s new biopharmaceutical site in Holly Springs, North Carolina, positioning the state as a cornerstone of the country’s onshoring efforts.

The site, still under construction, will provide contract development and manufacturing organisation (CDMO) services for biologics once operational in 2025. Johnson & Johnson, through its Janssen Supply Group, has entered into the agreement to ensure long‑term capacity for monoclonal antibodies and other biologics that are central to the company’s drug pipeline.

The announcement is part of a broader shift in pharmaceutical manufacturing strategy. After decades of offshoring production to Asia and Europe, major drugmakers are being driven to reinvest in U.S. soil. Factors include lessons learned during the COVID‑19 pandemic, increased political pressure for domestic resilience, and rising geopolitical tensions that threaten global supply chains.

In this context, J&J’s $2 billion agreement fits into a wave of onshoring investments that have already surpassed $55 billion over the past few years. Companies such as Eli Lilly, Pfizer and Amgen are all expanding U.S. operations, while the Biden administration has continued to incentivize reshoring efforts via legislation and direct subsidies.

The Fujifilm facility in Holly Springs is expected to be one of the largest end‑to‑end cell culture biopharmaceutical manufacturing sites in North America. J&J’s agreement secures exclusive use of part of the facility and ensures dedicated capacity for its therapies over a ten‑year span. For Fujifilm, the deal is another signal of confidence from major pharma customers after it previously landed a $1.6 billion agreement with Regeneron in 2023.

Fujifilm’s new facility will bring approximately 725 skilled jobs to the region and spans more than 160,000 square feet. Construction began in 2021 and the plant is expected to be operational in 2025. It will support all phases of drug development from clinical trials to commercial manufacturing, providing J&J with flexibility across multiple pipeline stages.

The Holly Springs site is one of several recent biomanufacturing hubs forming across North Carolina, further establishing the state as a central player in U.S. biopharma logistics and innovation. Fujifilm’s decision to expand in this location was supported by more than $2 billion in investment, aided by state and local government incentives.

In addition to Holly Springs, J&J is also expanding its own operations elsewhere in the state. The company’s Wilson facility has undergone a major scale‑up and other regional sites have been identified for future capacity development. These moves align with J&J’s stated goals to shorten supply chains, reduce transportation risks and respond more quickly to emerging healthcare demands.

Joaquin Duato, CEO of Johnson & Johnson, emphasized the role of the deal in reinforcing the resilience of the healthcare system. The partnership with Fujifilm will provide security of supply and scalable capacity to bring new therapies to market faster, he said in a press release issued shortly after the announcement.

The demand for biologics, particularly monoclonal antibodies, is expected to grow significantly over the next decade. These treatments require highly specialised and expensive manufacturing capabilities that many pharmaceutical companies are increasingly choosing to outsource to experienced CDMOs like Fujifilm.

For J&J, the move signals a long‑term commitment not just to individual product lines, but to a broader manufacturing strategy built around stability, scalability and proximity to key markets.

Sources

Pharmaceutical Technology