Johnson & Johnson announced Tuesday it would purchase 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.
The deal includes an upfront payment of $600 million, with the potential for an additional $1.1 billion based on achieving regulatory and commercial milestones. This acquisition is expected to boost Johnson & Johnson's earnings by approximately 24 cents per share in 2024 and 6 cents per share in 2025.
V-Wave specializes in a heart implant designed to reduce heart failure and related complications through a minimally invasive procedure. While the device is not yet approved for use in the United States, it targets heart failure with reduced ejection fraction (HFrEF), a condition where the heart muscle fails to pump blood effectively.
The company’s Ventura Interatrial Shunt (IAS) works by creating a shunt between the left and right atrium, lowering elevated left atrial pressure and reducing the likelihood of heart failure hospitalizations.
This acquisition comes as Johnson & Johnson prepares for increased competition in the market for its blockbuster psoriasis drug, Stelara. Earlier this year, the company announced a $13.1 billion deal to acquire Shockwave Medical, along with other recent acquisitions including a $1.25 billion purchase of Numab's skin disorder drug and an $850 million deal for Proteologix.
“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.”