Johnson & Johnson (J&J) has agreed to acquire V-Wave, an Israeli medical device company developing advanced treatment options for patients with heart failure, for up to $1.7bn.
Under the terms of the agreement, J&J will make an upfront payment of $600 million, along with additional regulatory and commercial milestone payments up to about $1.1bn.
The proposed acquisition is expected to be completed before the end of this year, subject to the receipt of applicable regulatory approvals and other customary closing conditions.
Upon completion of the deal, V-Wave will operate as a part of Johnson & Johnson MedTech, and financials will be reported within Johnson & Johnson MedTech’s Cardiovascular portfolio.
As part of the transaction, J&J Group heart recovery and intravascular lithotripsy president Michael Bodner will assume responsibility for the V-Wave team.
V-Wave CEO Neal Eigler said: “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.”
V-Wave has developed a cardiovascular implant technology that specifically targets heart failure with reduced ejection fraction (HFrEF).
Its Ventura Interatrial Shunt (IAS) is an implantable device designed to lower the elevated left atrial pressure observed in congestive heart failure.
The implant works by creating a shunt between the left and right atrium, which results in reduced cardiovascular events and heart failure hospitalisations.
The IAS implant received the US Food and Drug Administration (FDA) Breakthrough Device Designation in 2019, and the CE mark approval in 2020.
The US drugmaker said that the acquisition of V-Wave would strengthen J&J MedTech’s position in addressing cardiovascular disease.
Also, the acquisition would further advance its transition into high-growth markets and strengthen its relationships with cardiologists and heart failure specialists, said J&J.
Johnson & Johnson MedTech executive vice president and worldwide chairman Tim Schmid said: “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 recognise 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.”
