Johnson & Johnson Strikes $1.7B Deal To Acquire Heart-Tech Innovator V-Wave

On Tuesday, Johnson & Johnson JNJ agreed to acquire V-Wave for an upfront payment of $600 million, with the potential for additional regulatory and commercial milestone payments up to approximately $1.1 billion.

V-Wave is a privately held medical device company focused on developing heart failure and cardiovascular disease treatment options.

V-Wave will join Johnson & Johnson as part of Johnson & Johnson MedTech.

Also Read: Johnson & Johnson Nears Approval for $6.5B Long Standing Talc Settlement.

The planned acquisition of V-Wave will extend Johnson & Johnson MedTech’s position in addressing cardiovascular disease.

It will further accelerate its shift into high-growth and high-opportunity markets.

V-Wave’s Ventura Interatrial Shunt (IAS) is an implantable device designed to decrease elevated left atrial pressure in congestive heart failure by creating a shunt between the left and right atrium. This reduces cardiovascular events and heart failure hospitalizations.

The transaction is expected to close before the end of 2024.

Johnson & Johnson expects the transaction to dilute adjusted EPS by approximately $0.24 in 2024 and approximately $0.06 in 2025.

On Tuesday, the FDA also approved Johnson & Johnson’s Rybrevant (amivantamab) plus Lazcluze (lazertinib) for the first-line treatment of adult patients with locally advanced or metastatic non-small cell lung cancer (NSCLC) with epidermal growth factor receptor (EGFR) exon 19 deletions or exon 21 L858R substitution mutations.

With this milestone, Rybrevant plus Lazcluze becomes the first and only multitargeted, chemotherapy-free combination regimen with demonstrated superiority versus AstraZeneca Plc’s AZN Tagrisso (osimertinib) approved for the first-line treatment of patients with EGFR-mutated NSCLC.

The FDA approval is based on results from the Phase 3 MARIPOSA study, which reduced the risk of disease progression or death by 30% compared to osimertinib (median progression-free survival 23.7 months versus 16.6 months).

The median duration of response was nine months longer with Rybrevant plus Lazcluze versus osimertinib (25.8 months versus 16.7 months), a secondary endpoint of the study.

Price Action: JNJ stock is up 0.5% at $160.43 at last check Tuesday.

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