NEW BRUNSWICK, N.J. - Johnson & Johnson (NYSE: JNJ) has completed the acquisition of V-Wave Ltd., a company specializing in heart failure treatments, expanding its MedTech segment's cardiovascular portfolio. V-Wave's Ventura® Interatrial Shunt, a device for heart failure patients, is now part of Johnson & Johnson MedTech's offerings.
The acquisition positions Johnson & Johnson MedTech to address heart failure, a significant medical challenge. The Ventura® device is poised to be the first marketable product of its kind, aiming to improve the quality of life for patients with reduced ejection fraction heart failure.
Tim Schmid, Executive Vice President and Worldwide Chairman of Johnson & Johnson MedTech, expressed enthusiasm about the merger, highlighting the potential benefits of the Ventura® device for heart failure patients.
The transaction is considered an asset acquisition under U.S. GAAP, with an in-process research and development charge of about $600 million expected in the fourth quarter of 2024. The acquisition is projected to reduce Johnson & Johnson's adjusted earnings per share by $0.24 in 2024 and $0.06 in 2025. The company will update its full-year financial outlook for 2024 on October 15, 2024.
Johnson & Johnson's acquisition of V-Wave is part of its strategy to innovate across healthcare solutions and impact global health. The transaction also carries forward-looking statements that involve uncertainties, including the integration of V-Wave's products and operations and market performance.
The financial details of the acquisition include non-GAAP measures such as adjusted EPS, which Johnson & Johnson uses to provide a clearer understanding of its financial performance. The company does not reconcile adjusted EPS to GAAP EPS due to the unpredictability of adjusted items.
This news article is based on a press release statement.
In other recent news, Johnson & Johnson has made significant strides in various areas. The company's drug ERLEADA® has shown survival benefits in a prostate cancer study, reducing the risk of death by 23 percent compared to enzalutamide. On the other hand, Johnson & Johnson has halted a mid-stage trial for dengue prevention, marking an end to one of its efforts to combat the disease.
In terms of product expansions, Johnson & Johnson has rolled out its TECNIS Odyssey intraocular lens across the U.S., aimed at enhancing vision for cataract patients. Additionally, the company's CARVYKTI treatment has been found to significantly improve survival in patients with relapsed or lenalidomide-refractory multiple myeloma, according to the Phase 3 CARTITUDE-4 study.
In other developments, Johnson & Johnson has submitted a supplemental Biologics License Application to the FDA for a new indication of its DARZALEX FASPRO® treatment, supported by Phase 3 CEPHEUS study results. Furthermore, the company's subsidiary, Red River Talc LLC, filed for a prepackaged Chapter 11 bankruptcy as part of a strategy to settle ongoing ovarian cancer claims related to cosmetic talc litigation in the U.S. Lastly, Johnson & Johnson announced the retirement of Executive Vice President and Chief Human Resources Officer, Dr. Peter M. Fasolo, with Kristen Mulholland named as his successor. These are the recent developments at Johnson & Johnson.
InvestingPro Insights
Johnson & Johnson's acquisition of V-Wave Ltd. aligns well with the company's strong financial position and growth strategy. According to InvestingPro data, J&J boasts a substantial market capitalization of $384.41 billion, underscoring its position as a healthcare industry leader. The company's revenue growth of 5.13% over the last twelve months indicates a steady expansion, which could be further bolstered by strategic acquisitions like V-Wave.
InvestingPro Tips highlight J&J's financial stability and shareholder-friendly policies. The company has raised its dividend for 53 consecutive years, demonstrating a commitment to returning value to shareholders. This consistent dividend growth, coupled with a current dividend yield of 3.11%, makes J&J an attractive option for income-focused investors.
Moreover, J&J's P/E ratio of 10.22 suggests that the stock may be undervalued relative to its earnings potential. This could indicate that the market has not fully priced in the potential benefits of acquisitions like V-Wave, which aim to strengthen J&J's position in the lucrative cardiovascular market.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 10 more InvestingPro Tips available for Johnson & Johnson, providing a deeper understanding of the company's financial health and market position.
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