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Johnson & Johnson on Tuesday announced a $1.7 billion deal to buy V-Wave Ltd., which develops an innovative implant device for treating heart failure, as the U.S. healthcare giant pushes further into digital and medical technology space... This purchase is part of a wider strategy at J&J to bolster its cardiovascular disease offerings.

The healthcare titan has agreed to pay $600 million initially and as much as another $1. The expected close of the V-Wave acquisition is at year 2024, subject to regulatory approvals and customary closing conditions. After completion, V-Wave will become part of Johnson & Johnson MedTech.

Strategic Move to Expand Cardiovascular Care

“Managing the health of people living with atrial fibrillation or other heart conditions requires continuous attention, as well as ongoing development and innovation,” said J&J's Tim Schmid," worldwide chair of MedTech at Johnson & Johnson. “Executing on our share repurchase program and raising primary capital through stock issuance allows us to maintain balance sheet strength while also driving growth for the Company,” Schmid added. J&J said it made an initial investment in V-Wave back in 2016, which Huennekens also observed as evidence that the company was serious about garnering a new approach to treating heart failure this time. Schmid continued, “ We know it is crucial to learn about other ways and therapies that can be more inclusive for heart failure. “Consistent with our recent priorities, we will grow by accelerating the pace at which new therapeutics can reach patients and solutions to address growing healthcare unmet needs.

J&J $1.7B V-Wave Buy : V-Wave’s Breakthrough Implant Technology

With the acquisition of V-Wave, J&J is set to further penetrate into cardiologist as well heart failure specialist relationships since it relies on one-of-a-kind cardiovascular implants. One such product is the Ventura interatrial shunt implant designed to treat congestive heart failure, awarded Breakthrough Device Designation by FDA in 2019. J&J picked out V-Wave's device claiming it could be the world's first of its kind on market, making a significant disruptor for heart failure treatment. “V-Wave's breakthrough technology has the potential to help tens of thousands of patients who suffer from HF symptoms despite already being on oral medications while reducing heart failure-related hospitalizations and associated healthcare costs,” said Dr. Neal Eigler, CEO ‎of V-Wave in a statement announcing the deal with J&J. “We are confident that Johnson & Johnson MedTech is well positioned to ensure V‑Wave's next generation solutions benefit these many millions of patients experiencing this life-threatening condition as quickly and efficiently as possible.”

J&J $1.7B V-Wave Buy : Legal Teams Behind the Deal

V-Wave was advised by Kirkland & Ellis LLP, with a team led by corporate partners Lauren Colasacco, Daniel Wolf and Jimin He as well as tax partner Sara Zablotney. Johnson & Johnson did not disclose legal representation and representatives of the company could not immediately be reached for comment.