(Bloomberg) -- Johnson & Johnson will pay as much $1.7 billion for V-Wave Ltd., bolstering its development efforts to treat heart failure as it goes deeper into medical technology.
J&J will pay $600 million up front and as much as $1.1 billion in additional payments for hitting business goals, according to a statement Tuesday. The transaction is expected to close by the year’s end.
The company has been active in acquisitions after separating from its consumer health division, now called Kenvue Inc., to focus on innovative medicines and devices. J&J sees the purchase as part of its shift into markets with the potential for high growth and opportunity, according to the statement.
V-Wave is developing an implanted device called an interatrial shunt that helps heart failure patients with reduced ejection fraction — an inability of the heart muscle to sufficiently pump blood to the body. The device received breakthrough status from the US Food and Drug Administration in 2019 and has the potential to be first of its kind to market, according to the statement.
The deal is expected to dilute J&J’s adjusted earnings per share by about 24 cents in 2024 and about 6 cents in 2025.
J&J shares rose 0.3% in premarket trading in New York.
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