USA – Johnson & Johnson (J&J) has completed its acquisition of V-Wave, a company specializing in cardiovascular implant technology.
This strategic acquisition, announced in August, involves an investment of up to US $1.7 billion, further strengthening J&J’s position in the heart failure treatment market.
J&J’s relationship with V-Wave began in 2016, when it first invested in the company, recognizing the potential of its Ventura interatrial shunt, a breakthrough implant targeting heart failure with reduced ejection fraction (HFrEF).
How the Ventura interatrial shunt works
The Ventura interatrial shunt is designed to address a significant treatment gap for patients with heart failure. The implant is placed in the heart through a minimally invasive, catheter-based procedure.
During the procedure, a catheter is inserted through the femoral artery and guided to the heart’s interatrial septum, where the shunt is placed.
The nitinol frame of the shunt, known for its superelastic properties, allows it to compress for catheter delivery and self-expand once inside the heart.
This structure anchors the device securely in the heart and prevents it from moving or dislodging.
The purpose of the shunt is to reduce elevated left atrial pressure commonly seen in congestive heart failure by creating a small passageway between the left and right atrium, allowing the excess pressure to be relieved.
The device could significantly decrease the number of heart failure hospitalizations and cardiovascular events, offering a less invasive alternative to left ventricular assist devices (LVADs) and heart transplantation.
Addressing unmet needs in heart failure treatment
V-Wave’s technology is targeted specifically at patients with heart failure with reduced ejection fraction (HFrEF), a condition that affects around 800,000 people in the U.S. annually.
Despite existing therapies, many patients continue to experience debilitating symptoms, making the Ventura shunt a promising solution for those who require more than guideline-directed medical therapy but are not candidates for highly invasive treatments like LVADs or heart transplants.
The Ventura shunt received the FDA breakthrough device designation in 2019 and earned a CE mark in 2020, signaling its innovative potential in addressing heart failure.
Strategic importance of V-Wave acquisition
By acquiring V-Wave, Johnson & Johnson deepens its commitment to cardiovascular disease treatment and expands its offering for patients with heart failure.
Tim Schmid, EVP and Worldwide Chair of J&J MedTech, expressed enthusiasm about the acquisition, stating, “V-Wave’s novel implantable device, the Ventura Interatrial Shunt, offers tremendous promise for patients experiencing heart failure with reduced ejection fraction. This technology has the potential to be the first device of its kind to market.”
This acquisition is part of a broader strategy by J&J to focus on high-growth markets in the cardiovascular space.
The company has made a series of significant acquisitions in recent years, including the purchase of heart pump maker Abiomed for US $16.6 billion and Shockwave Medical, a maker of intravascular lithotripsy technology, for US $13.1 billion.
These acquisitions strengthen J&J’s cardiovascular portfolio and enhance its relationships with structural interventional cardiologists and heart failure specialists.
Financial impact of the acquisition
J&J has stated that the V-Wave acquisition will be accounted for as an asset acquisition, resulting in an in-process R&D charge of approximately US $600 million in the fourth quarter of 2024.
This charge is expected to cause a 24¢ dilution to adjusted earnings per share in 2024 and a 6¢ dilution in 2025.
