Johnson & Johnson to Invest Over $1 Billion in Pennsylvania Cell Therapy Manufacturing Facility

Johnson & Johnson announced plans to invest over $1 billion in a next-generation cell therapy manufacturing facility in Montgomery County, Pennsylvania. The facility is part of the company's $55 billion commitment to expand its U.S. manufacturing and R&D footprint by 2029.

Construction of the advanced manufacturing site in Lower Gwynedd is intended to expand the firm's U.S. manufacturing capacity and support its portfolio of medicines for cancer, immune-mediated and neurological diseases. The facility is expected to create over 500 biomanufacturing jobs and 4,000 construction positions.

The factory is planned to occupy a 154-acre parcel at 1201 Sumneytown Pike, approximately one mile from a Johnson & Johnson research and development campus. The project is scheduled to open in 2031.

Johnson & Johnson is receiving a $41.5 million economic package from Pennsylvania to support the development. The Chairman and Chief Executive Officer stated: "By uniting scientific excellence with state-of-the-art manufacturing and strategic investment, and by working collaboratively with our communities, we are delivering for patients and creating significant opportunities for workers and families."

The Pennsylvania Department of Community and Economic Development Secretary said in a statement: "We value Johnson & Johnson's long-time partnership here in Pennsylvania, and its decision to reinvest in Montgomery County is another huge win for the Commonwealth. This announcement also sends a clear message that Pennsylvania is competing — and winning — when it comes to attracting world-class life sciences companies."

Earlier this month, Eli Lilly shared it is investing $3.5 billion into injectables manufacturing at its Lehigh Valley site. This finalizes the last of the pharma company's four new manufacturing facilities aimed at onshoring domestic medicine production. Lilly has invested $50 billion in its U.S. manufacturing efforts since 2020. The 925,000 square foot Upper Macungie Township project, also set to deliver in 2031, is expected to bring 850 permanent jobs to the region.

Many pharmaceutical companies rushed to boost their domestic production capacity as the Trump administration plotted new tariffs on drug imports last spring. An executive order seeking to implement the levies also directed the Food and Drug Administration to eliminate red tape for new stateside projects.

The National Institutes of Health's new $48.7 billion budget — technically larger than last year but flat when accounting for inflation — led to a sigh of relief across the life sciences sector. This funding could preserve the pipeline of biotech tenants for the oversupplied lab space market, which is experiencing high vacancy in hubs like the University City section of Philadelphia.