In an interview with Jim Kramer on CNBC on Friday, Johnson & Johnson CEO Joaquin Duato has expressed optimism about the future of US drug innovation, despite the Trump administration slapping tariffs on imported drugs and cutting research funds.
“We’ve been through the ups and downs at Johnson & Johnson over our 140-year history. I’m an optimist,” Duato said. “I believe in the strength of the life sciences industry in this country. I believe we will continue to be leaders as we do today.
On Thursday, President Donald Trump announced that the US would impose 100% tariffs on “branded or patented drugs” starting October 1st. But Trump said the obligation doesn’t apply to companies building drug manufacturing plants in the country. Earlier this week, the Trump administration elicited an unproven link between autism and pregnant women using acetaminophen, a key ingredient in Tylenol. The medicine is made by KambIt was spun from Johnson & Johnson two years ago.
Duato highlighted the pledge that Johnson & Johnson is spending more than $55 billion to build four plants in the US, noting that the drug giant officially broke the ground at its North Carolina factory. He also said the company has maintained its manufacturing presence in the US since its establishment. Duato said Johnson & Johnson is planning to “bring great investments in the country to bring great middle class jobs in big manufacturing, robotics, cell therapy and biology.”
Duato also discussed many new Johnson & Johnson medications, including myeloma treatments and treatment for bladder cancer that has just been approved by the Food and Drug Administration.
“In this country, there’s all the elements,” Duato said. “We have universities, we have research institutes. We continue to attract great talent. We have a capital market and we have companies like us who can develop those drugs.”
