Johnson & Johnson Set to Acquire V-Wave Ltd

Image Credit: Adobe Stock Images/MARIAM

Johnson & Johnson (J&J) has reached a definitive agreement to acquire V-Wave Ltd., a private company specializing in cardiovascular implants for heart failure patients. The acquisition is expected to integrate V-Wave into Johnson & Johnson MedTech. V-Wave was recently granted FDA Breakthrough Device Designation and CE mark approval for the Ventura Interatrial Shunt technology, which treats heart failure with reduced ejection fraction (HFrEF). The deal is expected to close by the end of this year.¹

“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,” said Tim Schmid, EVP, worldwide chairman, Johnson & Johnson Medtech, in a press release.

According to V-Wave, the Ventura Interatrial Shunt is 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. Additionally, the device is placed in the heart through a minimally invasive catheter-based procedure. This is expected to address an unmet need, as J&J reports that an estimated 800,000 patients experience HFrEF in the United States.

Under terms of the deal, J&J is expected to acquire V-Wave for an upfront payment of $600 million, with the potential for further payments of up to $1.1 billion based on regulatory and commercial milestones. Closing on the deal is subject to the receipt of applicable regulatory approvals and other customary closing conditions.

Additionally, the transaction will be considered an asset acquisition, in accordance with the United States GAAP, resulting in a non-tax deductible in-process research and development charge of approximately $600 million in the period the transaction closes. Moving forward, V-Wave will be run by Michael Bodner, group president, heart recovery, intravascular lithotripsy.¹

According to the Heart Failure Society of America, current estimates suggest that approximately 6.5 million people in the United States over 20 years of age have heart failure. Additionally, statistics show that there are around 960,000 new cases reported in the United States annually. It accounts for around 8.5% of all heart disease-related deaths in the United States and some estimates suggest that it accounts for 36% of all cardiovascular-related deaths.²

“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 Neal Eigler, MD, CEO, V-Wave, in the press release. “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.”

References

1. Johnson & Johnson to Acquire V-Wave. Johnson & Johnson. August 20, 2024. Accessed August 20, 2024. https://www.jnj.com/media-center/press-releases/johnson-johnson-to-acquire-v-wave

2. Heart Failure Facts & Information. HFSA. Accessed August 20, 2024. https://hfsa.org/patient-hub/heart-failure-facts-information