Johnson & Johnson announced today that it has entered into a definitive agreement to acquire V-Wave, a privately-held company developing innovative treatment options for patients with heart failure. As part of the deal, Johnson & Johnson will acquire V-Wave for an upfront payment of $600 million, subject to customary adjustments, with the potential for additional regulatory and commercial milestone payments up to approximately $1.1 billion. V-Wave will be joining Johnson & Johnson as part of Johnson & Johnson MedTech.
The acquisition of V-Wave will extend Johnson & Johnson MedTech’s position as an innovation leader in addressing cardiovascular disease. And it will further accelerate its shift into high-growth and high-opportunity markets and will deepen its relationships with structural interventional cardiologists and heart failure specialists.
Heart failure is a global health issue associated with impaired quality of life, frequent hospitalizations, increasing health-care costs, and high rates of premature death. And V-Wave’s cardiovascular implant technology 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.
The device 1.) Is placed in the heart through a minimally invasive catheter-based procedure and has the potential to fill a significant treatment gap between guideline directed medical therapies (GDMT) as a first line therapy and highly invasive cardiac replacement therapies, including left ventricular assist devices (LVADs) and heart transplantation 2.) Received FDA Breakthrough Device Designation in 2019 and CE mark in 2020 and has the potential to be the first device of its kind to market 3.) Addresses an unmet need for hundreds of thousands of patients who experience HFrEF in the U.S every year.
The deal is expected to close before the end of 2024, subject to the receipt of applicable regulatory approvals and other customary closing conditions.
Following the completion of the transaction, V-Wave will be part of Johnson & Johnson MedTech, and the financials will be reported within Johnson & Johnson MedTech’s Cardiovascular portfolio. Michael Bodner, Group President, Heart Recovery & Intravascular Lithotripsy, will assume responsibility for the V-Wave team upon the closing of the deal.
KEY QUOTES:
“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. 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.”
- Tim Schmid, Executive Vice President and Worldwide Chairman of Johnson & Johnson MedTech
“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. 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.”
- Dr. Neal Eigler, Chief Executive Officer of V-Wave
