Johnson & Johnson to acquire Israeli medical device maker V-Wave for up to $1.7 billion
Johnson & Johnson to acquire Israeli medical device maker V-Wave for up to $1.7 billion
V-Wave's device is implanted in the heart through a minimally invasive procedure to help reduce heart failure and other events.
Johnson & Johnson said on Tuesday it would buy Israeli medical device maker V-Wave for up to $1.7 billion, the latest in a string of acquisitions aimed at driving growth once its blockbuster drug Stelara loses patent protection.
J&J said it will pay $600 million upfront, with potential payments of up to $1.1 billion contingent on regulatory and commercial milestones.
The deal is expected to boost Johnson & Johnson's earnings by about 24 cents in 2024, and by 6 cents in 2025.
V-Wave's device is implanted in the heart through a minimally invasive procedure to help reduce heart failure and other events. It is not yet cleared for use in the United States.
J&J is gearing up to face increased competition for blockbuster psoriasis drug Stelara from next year.
In April, the company said it would buy Shockwave Medical in a deal valued at $13.1 billion including debt. Other recent deals include its $1.25 billion acquisition of Numab's skin disorder drug, and its $850 million deal for Proteologix.
Heart failure is a global health burden associated with impaired quality of life, frequent hospitalizations, increasing health-care costs, and high rates of premature death. V-Wave’s cardiovascular implant technology specifically targets heart failure with reduced ejection fraction (HFrEF). In HFrEF, a patient’s heart muscle has insufficient ability to pump blood containing oxygen and nutrients to the body. V-Wave’s Ventura Interatrial Shunt (IAS) is a novel implantable device designed to decrease elevated left atrial pressure seen in congestive heart failure by creating a shunt between the left and right atrium, thereby reducing cardiovascular events and heart failure hospitalizations.
“We know V-Wave well, with our relationship dating back to our original investment in the company in 2016, and we have a deep understanding of the technology and science, as well as the company’s commitment to patients,” said Tim Schmid, Executive Vice President and Worldwide Chairman of Johnson & Johnson MedTech. “We look forward to working with the V-Wave team at this pivotal stage of its evolution to bring the Ventura® Interatrial Shunt technology to patients.”
“At V-Wave, we are dedicated to achieving our vision to help patients around the world – and we know Johnson & Johnson MedTech shares this mission,” said Dr. Neal Eigler, CEO of V-Wave. “We are confident that Johnson & Johnson MedTech is well-positioned to ensure V-Wave’s breakthrough ideas and technology reach patients in need as quickly and effectively as possible. I couldn’t be prouder of the V-Wave team, and the commitment it has taken to achieve this milestone. We look forward to continuing to build a world where cardiovascular disease is prevented, treated, and cured.”
Reuters contributed to this report.
