Johnson & Johnson MedTech
(NYSE: JNJ)
announced today that it completed the acquisition of left atrial appendage (LAA) device maker Laminar.
The deal, which includes a $400 million upfront payment, adds Johnson & Johnson MedTech to the crowded LAA device space. Established devices like Abbott’s Amplatzer Amulet and Boston Scientific’s Watchman already exist within the market. Medtronic threw its hat in the ring with the launch of its Penditure LAA exclusion system this week.
However, unlike these technologies, which exclude or occlude the LAA, Laminar’s aims to completely eliminate it to treat AFib. Rather than use catheter-based devices to plug and occlude the LAA, Laminar’s approach utilizes rotational motion. The company recently received FDA approval to begin a U.S. pivotal study, earmarked to start enrollment in early 2024.
“For the millions of people living with AFib, stroke risk is a major concern. The team at Laminar is driven by our vision to develop and deliver an innovative solution to help patients live without the fear of stroke or the need for long-term use of blood thinners,” said Randy Lashinski, president & CEO, Laminar. “We are looking forward to advancing this vision as part of Johnson & Johnson MedTech.”
More about the latest move by Johnson & Johnson MedTech
In addition to the $400 million upfront payment, Johnson & Johnson’s deal includes potential clinical and regulatory milestone payments down the line.
Laminar joins the company as part of Biosense Webster, which develops catheter ablation technologies for treating AFib.
“We are excited to welcome Laminar to Johnson & Johnson MedTech,” said Jasmina Brooks, president, Biosense Webster. “Laminar’s innovative approach will provide Biosense Webster the opportunity to expand our portfolio in this high-growth market, complement our electrophysiology and intracardiac echo strengths, and deepen our presence with interventional cardiologists and electrophysiologists.
“Fueled by the global scale and commercial and clinical strength of Biosense Webster, we are excited to explore the possibilities ahead to reach even more patients with critical unmet need.”
As a result of the acquisition, Johnson & Johnson tweaked its adjusted EPS forecast for 2023. The buy requires an in-process R&D charge, reducing operational and reported adjusted EPS by approximately 17¢ from the previous outlook.
The company now expects full-year adjusted EPS to range between $9.85 and $9.91 on an operational basis. On a reported basis, it expects between $9.90 and $9.96. The company also expects an approximate negative impact of 15¢ on EPS in fiscal 2024.
The analysts’ view
BTIG analysts Marie Thibault and Sam Eiber noted that the system comes in two device sizes (12mm and 16mm). It’s delivered through an 18F transeptal system.
Laminar had an ongoing U.S. early feasibility study of up to 45 patients. Results from 15 patients showed no safety events out to 12 months post-procedure, with all experiencing a successful LAA closure. Those patients also didn’t experience a device-related thrombus, confirmed with imaging at 45 days and stable out to 12 months.
The analysts made no changes to their outlooks on Johnson & Johnson or competitors Abbott or Boston Scientific following the deal.
