The medtech giant says the planned acquisition extends its position as a leader in addressing cardiovascular disease.
V-Wave develops cardiovascular implant technology that specifically targets heart failure with reduced ejection fraction (HFrEF). The company designed its Ventura interatrial shunt with 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, reducing cardiovascular events and heart failure hospitalizations. (Read more about the technology at Medical Design & Outsourcing.)
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 first received FDA breakthrough device designation in 2019 and picked up CE mark in 2020. J&J says it could become the first device of its kind to hit the market. The company said it addresses an unmet need for around 800,000 patients who experience HFrEF in the U.S. annually.
J&J’s relationship with V-Wave also dates back to an initial investment in the company in 2016.
“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, EVP and worldwide chair 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.”
More on the Johnson & Johnson acquisition of V-Wave
Under the terms of the agreement, J&J plans to acquire V-Wave for an upfront payment of $600 million. The deal includes potential additional regulatory and commercial milestone payments reaching up to $1.1 billion, potentially totaling the $1.7 billion. Upon completion, V-Wave joins the company as part of the J&J MedTech unit.
The companies expect the transaction to close by the end of 2024, subject to necessary approvals and other closing conditions.
Johnson & Johnson expects the deal to dilute adjusted earnings per share (EPS) by approximately 24¢ in 2024 and 6¢ in 2025. It intends to offer an update on its full-year outlook when it announces its third-quarter results on Oct. 15, 2024.
Once they complete the deal, J&J plans to integrate V-Wave into its MedTech unit, with financials reported as part of its Cardiovascular portfolio. Michael Bodner, group president, heart recovery & intravascular lithotripsy, will assume responsibility for the V-Wave team upon close.
“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.”
Another big M&A play at J&J
V-Wave becomes the latest cardiovascular treatment developer to join the ranks at J&J MedTech.
At the end of 2022, the company made a major cardiovascular play with the acquisition of Abiomed. J&J bought the heart pump maker 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.
“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,” Schmid said. “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.”
The analysts’ take
Analysts note that data presented in April highlighted Ventura’s failure to meet the primary effectiveness endpoint in a pivotal trial. That trial had a primary endpoint of a hierarchical composite of death, cardiac transplantation, mechanical circulatory support, HF hospitalization, outpatient worsening HF levels, and change in KCCQ.
However, they say the company reported directionally opposite effects in patients with reduced vs. preserved ventricular ejection fraction. The analysts called the results “compelling.” They highlighted a reduction in heart failure hospitalizations and borderline reductions in the need for LVAD or heart transplant.
The analysts also note that J&J provided few details on regulatory timelines for the device in its announcement.
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