J&J MedTech to Acquire V-Wave for up to $1.7 Billion

Johnson & Johnson has begun a deal to acquire V-Wave, a privately-led company that develops treatment options for patients with heart failure.
 
J&J will acquire V-Wave for a $600 million upfront payment, with potential for further regulatory and commercial milestone payments up to about $1.1 billion. V-Wave will join J&J as part of Johnson & Johnson MedTech.
 
V-Wave’s cardiovascular implant technology targets heart failure with reduced ejection fraction (HFrEF), a condition where the heart muscle cannot sufficiently pump blood-containing oxygen and nutrients to the body. The company’s Ventura interatrial shunt (IAS) decreases elevated left atrial pressure seen in congestive heart failure by creating a shunt between the left and right atrium.
 
The Ventura IAS is implanted in the heart in a minimally invasive, catheter-based procedure. J&J believes it could fill a significant treatment gap between guideline-directed medical therapies (GDMT) as a first-line therapy and invasive cardiac replacement therapies like left ventricular assist devices (LVADs) and heart transplantation.
 
The device earned U.S. Food and Drug Administration (FDA) breakthrough device status in 2019 and CE mark clearance in 2020.
 
“We are excited to welcome V-Wave to Johnson & Johnson MedTech and to take another meaningful step toward transforming the standard of care for cardiovascular disease,” said Tim Schmid, executive VP and worldwide chairman of Johnson & Johnson MedTech. “We recognize the importance of identifying more diverse and effective treatments for heart failure, and our recent track record demonstrates our focus on accelerating our impact on the most urgent and pressing unmet needs. 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. 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.”
 
The transaction for V-Wave is expected to close before the end of 2024. J&J expects the transaction to dilute adjusted earnings per share (EPS) by about $0.24 in 2024 and about $0.06 in 2025. The company will provide an update to its full-year financial outlook when it reports third quarter 2024 results later this year.
 
Michael Bodner, Group President, Heart Recovery & Intravascular Lithotripsy, will assume responsibility for the V-Wave team upon the transaction’s close.
 
“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.”
 
This is the second (potentially, in the case of V-Wave) billion-dollar deal that J&J MedTech has begun this year. The company began a $13.1 billion transaction for intravascular lithotripsy (IVL) Shockwave Medical in April 2024, as well.