New York, January 9, 2026, 21:25 EST — Market closed
Johnson & Johnson said it has struck a deal with President Donald Trump’s administration to cut U.S. drug prices, securing exemptions from U.S. tariffs, or import taxes, on its pharmaceutical products. Johnson & Johnson stock closed down 0.7% at $204.39 on Friday. (Reuters)
The agreement lands as the White House presses drugmakers to bring U.S. prices closer to those in other wealthy countries, raising fresh questions about how much pricing power the sector can keep while it tries to duck trade risks. In December, Merck, Bristol Myers Squibb and Gilead Sciences were among nine drugmakers that signed similar pacts in exchange for a three-year tariff reprieve; Bernstein analyst Courtney Breen wrote those deals delivered headlines while limiting a “step-change” in economics. (Reuters)
In a statement, J&J said it will sell medicines through TrumpRx.gov, a direct-to-patient site, at “significantly discounted” rates, and will offer Medicaid — the U.S. health program for low-income people — prices comparable with other developed countries. Chief Executive Joaquin Duato said the company was “answering” the administration’s call to lower prices, while J&J said the specific terms of the agreement remain confidential. It also announced two new U.S. manufacturing sites, in Pennsylvania and North Carolina, under its $55 billion domestic investment plan through early 2029. (Jnj)
The stock has traded in a 52-week range of $140.68 to $215.19 and now sits about 5% below that high, according to stockanalysis.com. The same listing flags Jan. 21 as the next key date on the company calendar. (StockAnalysis)
U.S. stocks finished at fresh records on Friday after a mixed jobs report, with the S&P 500 up 0.6%. J&J, often treated as a defensive holding, moved the other way. (AP News)
But the market still does not know which medicines are covered or how deep the discounts run, and that uncertainty is the lever for 2026 estimates. Investors also see a second-order risk: tying U.S. pricing closer to overseas levels could harden negotiations in Europe, where national health systems already pay less; “You can’t force the Europeans to just all of a sudden spend more,” said Marshall Gordon, a healthcare analyst at ClearBridge Investments. The topic is likely to come up again at the J.P. Morgan Healthcare Conference in San Francisco starting Jan. 12, Reuters reported. (Reuters)
Before the company reports, traders also have U.S. inflation data on deck: the Bureau of Labor Statistics is due to publish the December consumer price index on Tuesday, Jan. 13 at 8:30 a.m. ET. Rate expectations have been driving the early-year tape, and big swings in yields can bleed into healthcare valuations. (Bureau of Labor Statistics)
Johnson & Johnson is set to report fourth-quarter results on Wednesday, Jan. 21 and host its earnings call at 8:30 a.m. ET; investors will listen for detail on the drug-pricing deal, the tariff waiver and how the company frames its 2026 outlook. Wall Street is looking for earnings of about $2.51 a share, according to a Yahoo Finance earnings calendar. (Jnj)
