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Johnson & Johnson (J&J) announced on Tuesday that it would acquire privately held V-Wave for up to $1.7 billion, the second acquisition this year by the healthcare group aimed at expanding its presence in the cardiology equipment market. Johnson & Johnson is a giant in the industry, but the production of the Covid-19 vaccine has changed the company’s “destiny” and now they are able to make large chain purchases, News.ro reported.
J&J said it would pay $600 million up front, with the potential to pay up to $1.1 billion depending on regulatory and commercial milestones. The deal is the latest in a string of acquisitions by J&J, a big-pharma shark, as it looks to boost growth after 2025, when blockbuster psoriasis drug Stelara is expected to go head-to-head with biosimilar rivals. In April, J&J said it would buy Shockwave Medical in a deal valued at $13.1 billion including debt. Other recent deals include the $1.25 billion purchase of dermatology drug Numab and the $850 million purchase of Proteologix.
RBC Capital Markets analyst Shagun Singh said the V-Wave deal gives J&J further access to the high-growth market for heart failure devices. Singh added that given the device is expected to treat a disease that affects 800,000 patients annually, it should represent a stable and significant market opportunity for J&J. The V-Wave device is implanted in the heart via a minimally invasive procedure and helps reduce heart failure and other cardiovascular events. It is not yet cleared for use in the U.S.
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