Johnson & Johnson to acquire V-Wave for $600M upfront

Johnson & Johnson announced that it has entered into a definitive agreement to acquire V-Wave, a privately-held company focused on developing treatment options for patients with heart failure. Under the terms of the agreement, Johnson & Johnson will acquire V-Wave for an upfront payment of $600M, subject to customary adjustments, with the potential for additional regulatory and commercial milestone payments up to approximately $1.1B. V-Wave will join Johnson & Johnson as part of Johnson & Johnson MedTech. Under the terms of the agreement, Johnson & Johnson will acquire V-Wave for an upfront payment of $600M, subject to customary adjustments, with the potential for additional regulatory and commercial milestone payments up to approximately $1.1B. The transaction is expected to close before the end of 2024, subject to the receipt of applicable regulatory approvals and other customary closing conditions. In accordance with U.S. GAAP, the transaction will be accounted for as an asset acquisition, resulting in a non-tax deductible in-process research and development charge of approximately $600M in the period the transaction closes. Johnson & Johnson expects the transaction to dilute adjusted earnings per share by approximately 24c in 2024 and approximately 6c in 2025. Johnson & Johnson will provide an update to its full-year financial outlook when it reports third quarter 2024 results on October 15. Following the completion of the transaction, V-Wave will be part of Johnson & Johnson MedTech, and financials will be reported within Johnson & Johnson MedTech’s Cardiovascular portfolio. Michael Bodner, group president, Heart Recovery & Intravascular Lithotripsy, will assume responsibility for the V-Wave team upon close.