Johnson & Johnson to buy Israeli-based V-Wave for up to $1.7bn

Johnson & Johnson announced on Tuesday it would buy Israel-based medical technology firm V-Wave for up to $1.7 billion.

The healthcare giant says the planned acquisition extends its position as a leader in addressing cardiovascular disease. V-Wave develops cardiovascular implant technology designed to manage chronic heart failure.

Its Ventura® Interatrial Shunt (IAS) is implanted in the heart through a minimally invasive procedure to help reduce heart failure and other cardiovascular events

Under the terms of the agreement, Johnson & Johnson said it 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. V-Wave will join Johnson & Johnson as part of Johnson & Johnson MedTech.

Headquartered in Caesarea, Israel with other locations in the US, V-Wave was founded in 2009 by Yaacov Nitzan, Dr Ascher Shmulewitz and Dr Gad Keren. In 2013 the company completed animal trials of its shunt and in 2014 the first human implants were undertaken. Chief executive officer Dr Neal Eigler joined in early 2015 and has since overseen the development of the company’s senior management team, the evolution of its shunt products. The company is also led by president and head of European operations Erez Rozenfeld and chairman Dr Frank Litvack.

In 2016, V-Wave raised $70 million in a financing round led by Johnson & Johnson and Edwards and a few years later, secured a further $28 million led by Deerfield Management with the participation of Endeavour Vision, BRM, Aperture Venture Partners, Johnson & Johnson’s JJDC Fund, Pontifax, Quark Venture, Pura Vida, Triventures Fund, and Israel Secondary Fund.

Tim Schmid, Executive Vice President and Worldwide Chairman of Johnson & Johnson MedTech, said: “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. 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.

“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.”

Dr Neal Eigler, Chief Executive Officer of V-Wave, said: “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, Chief Executive Officer 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.”

vwavemedical.com