Johnson & Johnson to Acquire V-Wave for Up to $1.7 Billion, Marking Its Fourth Cardiovascular Deal in Three Years

Aug 21, 2024 18:02 CST Updated 18:02

Johnson & Johnson

Medical Device R&D and Manufacturer

On August 20, Johnson & Johnson announced that it had agreed to acquire V-Wave, a manufacturer of heart failure treatment devices, for an upfront payment of $600 million, with the total transaction amount potentially reaching up to$1.7 billion(approximately 12.1 billion yuan RMB), further expanding its leadership position in the cardiovascular disease treatment field.

Johnson & Johnson is expected to complete this acquisition by the end of 2024. This follows the $13.1 billion cash acquisition of Shockwave in April this year, marking another move by Johnson & Johnson to achieve a "strong product portfolio" through acquiring new companies and technologies. Moreover, this is the fourth time within three years that Johnson & Johnson has expanded its business scope in the cardiovascular device sector via mergers and acquisitions, with the total amount of these acquisitions exceeding $30 billion.

What is V-Wave?

V-Wave focuses on developing cardiovascular implant technologies for heart failure with reduced ejection fraction (HFrEF).The Ventura device received its first Breakthrough Device Designation from the FDA in 2019 and obtained the CE mark in 2020. Johnson & Johnson stated,This device has the potential to become the first of its kind to reach the market, addressing the unmet needs of approximately 800,000 HFrEF patients in the United States each year.

Johnson & Johnson's relationship with V-Wave dates back to the initial investment in the company in 2016. Tim Schmid, Global Chair and Executive Vice President of Johnson & Johnson MedTech, stated: "We know V-Wave very well. Since our first investment in the company in 2016, we have developed a deep understanding of the technology and science, as well as the company’s commitment to patients. We look forward to collaborating with the V-Wave team at this critical stage of their development to bring the Ventura interatrial shunt technology to patients."

According to the terms of the agreement, Johnson & Johnson plans to acquire V-Wave with an upfront payment of $600 million. The deal includes potential additional regulatory and commercial milestone payments, which could bring the total amount to $1.1 billion, summing up to $1.7 billion.

The two companies expect the transaction to be completed by the end of 2024, subject to the necessary approvals and other closing conditions.

Johnson & Johnson Makes Fourth Move in Cardiovascular Devices Sector Within Three Years

Johnson & Johnson Medical is serious about expanding its cardiovascular device business.

In November 2022, Johnson & Johnson announced the acquisition of Abiomed, a leader in the artificial heart field, for $16.6 billion.
November 2023,Johnson & JohnsonJohnson & JohnsonCompleted the acquisition of Laminar, a left atrial appendage closure device company, for $400 million.
In April this year, Johnson & Johnson announced a 4.7% premium acquisition of Shockwave for $13.1 billion in cash, gaining intravascular lithotripsy (IVL) for coronary arteries.

Upon completion of this transaction, Johnson & Johnson plans to integrate V-Wave into its MedTech sector, with financial reporting as part of its cardiovascular product portfolio.Michael Bodner, President of the Cardiovascular Recovery and Intravascular Lithotripsy Division, will be responsible for the V-Wave team upon completion of the transaction.

V-Wave CEO Dr. Neal Eigler stated, "We believe Johnson & Johnson Medical is fully capable of ensuring V-Wave's groundbreaking ideas and technologies reach the patients in need as quickly and effectively as possible. We look forward to continuing to build a world that prevents, treats, and cures cardiovascular diseases."

Schmid said:"We are delighted to welcome V-Wave to Johnson & Johnson Medical Technologies and take a meaningful step forward in the standard of care for cardiovascular disease treatment.We recognize the importance of identifying more diverse and effective treatments for heart failure, and our recent achievements demonstrate our focus on accelerating impact on the most pressing and unmet needs.”

Analyst: Clinical trial progress requires further attention

Notably, analysts pointed out that,Data presented in April highlighted that Ventura failed to meet the primary efficacy endpoint in the pivotal trial.The primary endpoint of the trial is a hierarchical composite of death, heart transplantation, mechanical circulatory support, hospitalization for heart failure, outpatient worsening heart failure, and changes in KCCQ.

However, analysts said the company reported opposite effects in patients with reduced and preserved ejection fraction. Analysts called the results "striking," highlighting a reduction in heart failure hospitalizations and a marginal decrease in the need for LVAD or heart transplantation.

Analysts also pointed out that Johnson & Johnson did not provide details about the regulatory timeline for the device in the announcement.

References:

https://www.massdevice.com/johnson-johnson-to-buy-heart-failure-treatment-maker-v-wave-for-up-to-1-1b/

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