Johnson & Johnson, the global leader in medical devices and biotechnology, has announced its acquisition of the Israeli company V-Wave for an upfront payment of $600 million, with the potential for the deal to reach up to $1.7 billion based on the achievement of specific milestones. Upon completion of the transaction, which is expected to close by the end of 2024, V-Wave will be integrated into Johnson & Johnson Med-Tech.

V-Wave specializes in the development of an implantable device designed to treat heart failure and pulmonary hypertension. Founded in 2010 by Yaakov Nitzan, Dr. Gadi Keren, and Dr. Asher Shmolevich, the company successfully transitioned from animal experiments in 2013 to its first human transplant in 2014. By 2016, V-Wave had secured $28 million in funding, with investments led by Johnson & Johnson and Edwards.

In 2020, V-Wave raised an additional $98 million through investments from several notable funds, including Deerfield Management, Aperture Venture Partners, BRM, Endeavor Vision, Johnson & Johnson’s JJDC Fund.

The company’s innovative heart implant has already gained marketing approval in Europe, and V-Wave is in the final stages of securing approval from the U.S. Food and Drug Administration (FDA). Johnson & Johnson has expressed optimism that V-Wave’s product may be the first of its kind to reach the market.

The journey to bring this advanced medical device to market has been both costly and lengthy, reflecting the significant challenges faced by companies developing implantable devices that must navigate the rigorous PMA (Premarket Approval) process. V-Wave’s ability to raise substantial funding highlights the high stakes and potential rewards involved in this venture. In 2020, the company indicated its hope to be acquired either during or after the completion of clinical trials and obtaining marketing approval, as the costs associated with establishing marketing channels could have added tens of millions of dollars to its expenses. Ultimately, V-Wave’s strategy proved successful, leading to its acquisition before the marketing stage, which represents a strong return on investment for its backers.