The Israeli V-Wave Ltd. firm, known for its cutting-edge heart failure treatment, has been acquired by the Johnson & Johnson biomed giant.
V-Wave is a privately held medical device company that was established in 2009 and is focused on developing innovative treatment options for people living with heart failure and cardiovascular disease, with offices in Israel and the United States.
The Israeli firm’s “novel and minimally invasive interatrial shunt is designed to treat heart failure and addresses significant treatment gap,” according to Johnson & Johnson.
Under the terms of the agreement, Johnson & Johnson will acquire V-Wave for an upfront payment of $600 million, subject to customary adjustments, with the potential for additional regulatory and commercial milestone payments up to approximately $1.1 billion. The transaction is expected to close before the end of 2024, subject to the receipt of applicable regulatory approvals and other customary closing conditions.
In accordance with U.S. GAAP, the transaction will be accounted for as an asset acquisition, resulting in a non-tax deductible in-process research and development charge of approximately $600 million in the period the transaction closes.
Johnson & Johnson said it expects the transaction to dilute adjusted earnings per share (EPS) by approximately $0.24 in 2024 and approximately $0.06 in 2025. The biomed giant said it will provide an update to its full-year financial outlook when it reports third quarter 2024 results on October 15, 2024.
V-Wave’s cardiovascular implant technology specifically targets heart failure with reduced ejection fraction (HFrEF).
In HFrEF, a patient’s heart muscle has insufficient ability to pump blood containing oxygen and nutrients to the body.
V-Wave’s Ventura® Interatrial Shunt (IAS) is a novel implantable device 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.
“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, Executive Vice President and Worldwide Chairman of Johnson & Johnson MedTech.
“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,” added V-Wave CEO Dr. Neal Eigler.
“We look forward to continuing to build a world where cardiovascular disease is prevented, treated, and cured.”
