Orchestra BioMed (Nasdaq:OBIO) announced today that it completed strategic transactions and equity offerings worth an expected $111.2 million.
The company raised the gross proceeds through strategic transactions and concurrent public and private equity offerings. Proceeds support the continued advancement of its late-stage atrioventricular interval modulation (AVIM) therapy and Virtue sirolimus angioinfusion balloon (SAB) clinical programs.
Last week, the company announced a $40 million offering and partnerships with Ligand Pharmaceuticals and Medtronic. In total, the company expects $55 million on or by May 1, 2026, from royalty-based, non-dilutive investments from Ligand and Medtronic. Ligand committed $35 million in exchange for a tiered revenue interest in future royalties from Orchestra’s AVIM and SAB products.
Medtronic, meanwhile, committed $20 million in exchange for a secured subordinated promissory note convertible to capped prepaid revenue share
Orchestra collected part of the remaining $56.2 million from the $40 million public offering. The remaining $11.2 million and $5 million came from private placements of common stock to Medtronic and Ligand, respectively.
“We are very proud to have secured significant long-term capital from strategic transactions with Medtronic and Ligand and the completion of our first underwritten public equity offering. We believe the success of these financing transactions reflects confidence from strategic partners and shareholders in the transformative potential of our two high impact, late-stage therapeutic programs,” said David Hochman, chair and CEO of Orchestra BioMed. “With Ligand, an established royalty investor, joining us as a strategic capital partner and Medtronic, the global market leader in cardiac rhythm management, expanding their commitment to our existing collaboration, this new capital strongly positions us to advance our core technologies, AVIM therapy and Virtue SAB, toward fundamental clinical and regulatory milestones that have the potential to create significant value for all stakeholders.”
Orchestra Biomed’s intended use of proceeds
The company says it hopes to use the net proceeds from its transactions to fund potential significant value-creating catalysts. That includes full enrollment in the BACKBEAT study evaluating AVIM therapy for treating uncontrolled hypertension in patients indicated for a pacemaker. The company also aims to complete follow-up for that study’s primary endpoints.
Other uses include the completion or near-completion of enrollment in its Virtue trial. That study evaluates Virtue SAB in the treatment of coronary in-stent restenosis (ISR).
New Hope, Pennsylvania-based Orchestra won FDA breakthrough device designation for its AVIM therapy earlier this year. It uses conduction system pacing to immediately, substantially and persistently reduce blood pressure. The patented bioelectronic therapy comes through standard dual-chamber pacemaker.
Just after the breakthrough nod for AVIM, the company also received FDA investigational device exemption (IDE) for Virtue in April. Orchestra designed Virtue SAB to deliver a proprietary extended-release formulation of sirolimus, SirolimusEFR. It utilizes a non-coated microporous AngioInfusion balloon that protects the drug in transit. This delivers a large liquid dose, overcoming certain limitations of DCBs.
SirolimusEFR enables tissue uptake and extended release of the required therapeutic levels of sirolimus. With this, Virtue SAB has breakthrough device designation for treating coronary ISR. It also has a breakthrough designation for coronary small vessel disease and peripheral artery disease below-the-knee.
