Healthcare giant Johnson & Johnson (NYSE: JNJ) today announced that it has entered into a definitive agreement to acquire Israeli company V-Wave, which has developed an innovative treatment for patients with heart failure. Johnson & Johnson will make an upfront payment of $600 million, with the potential for additional regulatory and commercial milestone payments that could increase the deal to $1.7 billion. V-Wave will join Johnson & Johnson as part of Johnson & Johnson MedTech. The deal is due to be closed by the end of 2024.
V-Wave’s Ventura Interatrial Shunt 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.
V-Wave was founded in 2010 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. In 2016 the company raised $70 million in a financing round led by Johnson & Johnson and Edwards. The company is led by CEO Dr. Neal Eigler, president and head of European operations Erez Rozenfeld and chairman Dr. Frank Litvack.
In 2020 the company raised 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.
V-Wave has already received marketing approval in Europe and is in advanced stages of applying for FDA marketing approval in the US. Johnson & Johnson said in its acquisition announcement that V-Wave's product will be the first of its kind in the world.
Johnson & Johnson EVP and J&J MedTech worldwide chairman Tim Schmid 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."
Published by Globes, Israel business news - en.globes.co.il - on August 20, 2024.
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