Global healthcare giant Johnson & Johnson (J&J) announced on Tuesday that it will acquire Israeli startup V-Wave for up to $1.7 billion, in a strategic move by J&J to bolster its position in the fast-growing congestive heart failure market, which is projected to reach $30 billion globally by 2030.
The $1.7b. deal is the 10th biggest acquisition in Israel’s history.
It will see J&J pay $600 million upfront, with an additional $1.1 billion in potential milestone payments tied to regulatory approvals and commercial performance targets. The acquisition is expected to provide a modest boost to J&J’s earnings, contributing an estimated 24 cents per share in 2024 and 6 cents per share in 2025.
However, the true value of the deal likely lies in the long-term growth potential of V-Wave’s innovative heart failure treatment technology.
V-Wave’s flagship product, the Ventura Interatrial Shunt (IAS), is an implantable device designed to alleviate the elevated left atrial pressure that plagues patients with congestive heart failure.
The minimally invasive IAS procedure aims to reduce the risk of cardiovascular events and hospitalizations for those suffering from heart failure with reduced ejection fraction – a condition where the heart muscle is unable to effectively pump blood. By creating a shunt between the left and right atriums, the device helps to relieve pressure buildup in the left atrium, potentially improving patient outcomes and quality of life.
The acquisition comes at a critical time for J&J, as the company prepares to face increased competition for its blockbuster psoriasis drug Stelara, which is set to lose patent protection next year. In response, the healthcare giant has been actively pursuing mergers and acquisitions to bolster its pipeline and drive future growth.
Israel wouldn’t have earned its reputation as the Startup Nation if some of the thousands of companies that have come out of this small country hadn’t earned big bucks for their investors.
How big? Jerusalem-based Mobileye holds the title for the most lucrative acquisition of an Israeli company: $15.3 billion – that’s how much Intel paid to acquire the company in 2017.
“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, Executive Vice President and Worldwide Chairman of Johnson & Johnson MedTech.
Earlier this year, J&J announced the $13.1 billion acquisition of Shockwave Medical, a move aimed at expanding its cardiovascular device portfolio. The company has also recently acquired Numab’s skin disorder drug for $1.25 billion and Proteologix for $850 million.
“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 look forward to continuing to build a world where cardiovascular disease is prevented, treated and cured.”
Produced in association with ISRAEL21c