New Brunswick, New Jersey-based Johnson & Johnson announced in August that it that it agreed to acquire the interatrial shunt maker for up to $1.7 billion. J&J’s relationship with V-Wave also dates back to an initial investment in the company in 2016.
V-Wave develops cardiovascular implant technology that specifically targets heart failure with reduced ejection fraction (HFrEF). The company’s Ventura interatrial shunt first received FDA breakthrough device designation in 2019 and picked up CE mark in 2020.
The company says Ventura addresses an unmet need for around 800,000 patients who experience HFrEF in the U.S. annually. It expects the acquisition to extend its position in cardiovascular disease and heart failure.
Placed in the heart through a minimally invasive, catheter-based procedure, Ventura could fill a treatment gap between guideline-directed medical therapies as a first-line therapy and highly invasive cardiac replacement therapies, including left ventricular assist devices (LVADs) and heart transplants.
Ventura features a nitinol hourglass frame to decrease elevated left atrial pressure seen in congestive heart failure. It achieves this by creating a shunt between the left and right atrium. The system could reduce cardiovascular events and heart failure hospitalizations. (Read more about the technology at Medical Design & Outsourcing.)
“We’re excited to officially welcome V-Wave to Johnson & Johnson MedTech. V-Wave’s novel implantable device, the Ventura Interatrial Shunt, offers tremendous promise for patients experiencing heart failure with reduced ejection fraction,” said Tim Schmid, EVP and worldwide chair of J&J MedTech. “This technology has the potential to be the first device of its kind to market. We look forward to working with the talented V-Wave team to bring this transformative innovation to patients.”
Another big M&A play at Johnson & Johnson
With the acquisition of V-Wave, J&J adds another cardiovascular treatment developer to its portfolio. It’s an area in which the company has placed a lot of focus and heavy investment.
At the end of 2022, it acquired heart pump maker Abiomed for $16.6 billion. Last fall, the company entered the left atrial appendage (LAA) device space with a $400 million buy of Laminar. Laminar’s LAA device aims to completely eliminate the appendage to treat AFib.
Earlier this year, the company made another big splash with the acquisition of intravascular lithotripsy (IVL) technology maker Shockwave Medical. That deal, worth $13.1 billion, closed in May.
Johnson & Johnson aims to use acquisitions like V-Wave to accelerate its shift into high-growth and high-opportunity markets. The company also said deals like this one deepen its relationships with structural interventional cardiologists and heart failure specialists.
According to the company, it intends to account for the transaction as an asset acquisition. This results in an in-process R&D charge of approximately $600 million in the fourth quarter of 2024. The company anticipates a 24¢ dilution to adjusted earnings per share in 2024 and a 6¢ dilution in 2025.
