Pharmaceutical giant Johnson & Johnson (JNJ) is buying privately held medical device maker V-Wave for $1.1 billion U.S.
Johnson & Johnson said it will pay $600 million U.S. in cash for V-Wave, with potential payments of up to $1.1 billion U.S. contingent on successfully meeting commercial milestones.
The deal is expected to close by year’s end and boost Johnson & Johnson’s earnings per share by 24 cents in 2024.
V-Wave makes a device that is implanted in the heart to help reduce heart failure and other cardiac events.
However, V-Wave’s heart implanted device has not yet received regulatory approval in the U.S.
The purchase of V-Wave is the latest acquisition of a medical device manufacturer by Johnson & Johnson, which is turning to devices as many of its medications lose their patent protections.
Stelara, a blockbuster prescription drug used to treat the skin condition psoriasis, loses its patent protection in 2025.
In April of this year, Johnson & Johnson announced that it was purchasing privately held Shockwave Medical, another cardiovascular device maker, for $13.10 billion U.S.
The stock of Johnson & Johnson has declined 5% over the last 12 months and currently trades at $159.63 U.S. per share.
