Johnson & Johnson announced it agreed to acquire interatrial shunt maker V-Wave for up to $1.7 billion. 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.
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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.”
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.
