Johnson & Johnson Strikes Deal with US Government to Cut Drug Prices, Gain Tariff Exemptions

Johnson & Johnson (JNJ) has reached a deal with the US government to lower drug prices and gain tariff exemptions. The agreement, announced on January 9, 2026, is a significant development in the ongoing efforts to reduce healthcare costs and improve access to affordable medications.

According to the deal, JNJ will reduce the prices of certain medications, including those used to treat cancer and other chronic conditions. The company will also gain exemptions from tariffs imposed on certain imported goods, which will help to reduce costs and improve profitability.

The agreement is a result of negotiations between JNJ and the US government, which have been ongoing for several months. The deal is seen as a major victory for the pharmaceutical industry, which has been under pressure to reduce prices and improve access to affordable medications.

Details of the Deal

• JNJ will reduce the prices of certain medications, including those used to treat cancer and other chronic conditions.
• The company will gain exemptions from tariffs imposed on certain imported goods, which will help to reduce costs and improve profitability.
• The agreement is a result of negotiations between JNJ and the US government, which have been ongoing for several months.

Impact of the Deal

The deal is expected to have a significant impact on the pharmaceutical industry, with JNJ and other companies likely to follow suit. The agreement will also help to improve access to affordable medications for patients, which is a major priority for the US government.

Reaction from Investors

The news of the deal has been welcomed by investors, with JNJ's stock price rising in response. The company's shares have been under pressure in recent months due to concerns over pricing and profitability, but the deal is seen as a major positive development.

Sources

[2] J&J strikes deal with US government to cut drug prices, gain tariff exemptions