Johnson & Johnson Plans $1B Cell Therapy Plant, Explores $20B DePuy Synthes Sale

Johnson & Johnson revealed its latest US-based site investment: a next-generation cell therapy manufacturing facility in Montgomery County, Pennsylvania, for more than $1 billion. The company is also reportedly considering selling its DePuy Synthes orthopedics business in a deal that could top $20 billion.

The new facility will support production of medicines for cancer, immune-mediated, and neurological diseases. The site is expected to generate over 4,000 construction jobs and create 500 permanent positions in biomanufacturing at full capacity. The chairman and chief executive officer shared that the new facility will be located close to one of its research and development campuses.

Johnson & Johnson shares slipped 2.1% to $241.75 Friday morning, following a report that the healthcare giant is gearing up to sell its DePuy Synthes orthopedics business. DePuy Synthes generated $9.3 billion in sales in 2025, with products ranging from hip and knee implants to surgical tools and other devices.

The company has started putting together financial paperwork and is gearing up for meetings with potential buyers within weeks. Private equity looks poised to show interest, and rival medical device makers might be eyeing the unit as well. The company's CFO put it plainly to investors: the next wave in orthopedics "was beyond our scope and probably in better hands somewhere else."

As part of its plans for the new facility, Johnson & Johnson will invest in manufacturing processes and training to develop a workforce skilled in advanced technologies. Overall, the global drug manufacturer has invested $55 billion to build several new manufacturing sites in the US by 2029. In addition to the Pennsylvania facility, Johnson & Johnson is building a $2 billion drug product manufacturing facility in North Carolina.

The decision trails recent US tariffs targeting branded drugs and arrives as pharmaceutical firms look to secure carve-outs by investing in American facilities. Johnson & Johnson joined many other companies in signing a deal with the Trump Administration in January to lower drug prices, and offering most-favored nation status. The drug makers agreed, as part of the deal, to sell some prescription medications on direct-to-consumer platforms, including TrumpRx, which became active in early February.

Discussions regarding the DePuy Synthes sale are still in the early stages and there's no guarantee a deal will materialize. One valuation estimate puts a $28 billion tag—debt included—on DePuy Synthes.

According to the company's investor release, Johnson & Johnson is set for a $1.30 quarterly dividend, with Feb. 24 as the ex-dividend date and a payment slated for March 10. The company is on the calendar for TD Cowen's health care conference March 3, with an 11:10 a.m. Eastern fireside chat.