J&J Hops on the M&A Train

The medtech M&A train appears to be picking up speed in the back half of the year. In the past two months, we've seen deal announcements from Boston Scientific, Edwards Lifesciences, Stryker, GE HealthCare, and now Johnson & Johnson.

Today, J&J announced plans to buy V-Wave for $600 million plus up to about $1.1 billion in potential payments tied to regulatory and commercial milestones. V-Wave is a private company that has developed the Ventura Interatrial Shunt System for heart failure treatment.

J&J says the deal will extend its leadership position in the cardiovascular market and further accelerate its shift into high-growth, high-opportunity spaces. The acquisition is also expected to deepen the company's relationships with structural interventional cardiologists and heart failure specialists.

This is the company's fourth cardiac acquisition in less than two years. In late 2022, J&J bought Abiomed for $16.6 billion; about a year later J&J bought Laminar for $400 million plus milestone payments; and earlier this year J&J acquired Shockwave for $13.1 billion.

How V-Wave's device works

V-Wave’s cardiovascular implant technology specifically targets heart failure with reduced ejection fraction (HFrEF). In HFrEF, a patient’s heart muscle has insufficient ability to pump blood containing oxygen and nutrients to the body. V-Wave’s Ventura Interatrial Shunt is an 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. More specifically, the device:

"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," said Tim Schmid, head of Johnson & Johnson's medtech business. "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."