Sundry Photography/iStock Editorial via Getty Images Johnson & Johnson ( NYSE: JNJ ) has agreed to acquire medical device company V-Wave for an upfront payment of $600M. The deal also includes the potential for additional regulatory and commercial milestone payments up to approximately $1.1B and is expected to close before the end of 2024.
V-Wave, which focuses on treatment options for cardiovascular disease, will join Johnson & Johnson as part of Johnson & Johnson MedTech. The company’s novel implantable device, Ventura Interatrial Shunt, is designed to treat heart failure. The device received FDA Breakthrough Device Designation in 2019 and CE mark in 2020 and has the potential to be the first device of its kind to market.
The deal will be accounted for as an asset acquisition, resulting in a non-tax deductible in-process R&D charge of around $600M in the period the transaction closes. Johnson & Johnson ( JNJ ) expects the transaction to dilute adjusted earnings per share by ~$0.24 in 2024 and ~$0.
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