After committing $55 billion last year to bolster U.S. manufacturing capabilities, Johnson & Johnson is making changes to its pharmaceutical supply chain.
Johnson & Johnson is restructuring its supply chain for medicines, offloading certain sites as part of an effort to streamline operations.
The changes, announced Wednesday in the company’s Q2 earnings release, follow last year’s $55 billion initiative to make all of J&J’s advanced medicines used in the U.S. domestically. Part of that investment includes a recent $1 billion commitment to scale U.S. manufacturing for vision products, packaging and distribution capabilities.
The new changes will cost up to an estimated $750 million and are expected to be largely completed by the end of fiscal year 2029, according to the company.
J&J has already incurred $200 million in restructuring expenses for the second fiscal quarter of 2026, mainly tied to asset impairments, and expects the additional three-quarters of a billion to cover additional decommissioning and asset impairment costs as well as site and supplier exit costs.
The news comes as J&J raises its outlook for the year, with second-quarter sales growing 6.6% compared to the same period in 2025.
“With raised guidance and quarterly sales surpassing $25 billion, we are on track to meet our 2026 target of more than $100 billion in annual revenue for the first time in our Company’s 140-year history,” J&J CEO Joaquin Duato said in a prepared statement.
The Innovative Medicines unit—formerly Pharmaceuticals—brought in $16.3 million for the quarter, compared to $15.2 million in 2025. BMO analysts called the quarter “strong” for J&J’s pharma sector, citing the 8% year-over-year rise in revenue.
