Orchestra BioMed (Nasdaq:OBIO) announced today that it secured $35 million in total funding through partnerships with Medtronic and Ligand.
In August 2025, Orchestra said it completed strategic transactions and equity offerings worth an expected $111.2 million with the two companies. That funding came through an initial agreement on a $40 million offering and partnerships with Ligand Pharmaceuticals and Medtronic.
The funding announced today includes a $20 million investment from Medtronic. It represents the completion of a scheduled tranche under the agreement and Medtronic’s support for the company’s BACKBEAT trial. BACKBEAT evaluates Orchestra’s AVIM (atrioventricular interval modulation) uses conduction system pacing to immediately, substantially and persistently reduce blood pressure. AVIM therapy recently received a milestone FDA breakthrough device designation.
Medtronic’s payment uflfills its previously disclosed commitment. The note automatically converts to a prepaid revenue share upon FDA approval for AVIM.
Additionally, the company received a $15 million investment from Ligand, building on its initial $20 million investment last year. This completes the company’s $35 million royalty financing commitment.
Commentary from Orchestra BioMed, Medtronic and Ligand officials
On Medtronic’s investment, Orchestra BioMed chair and CEO David Hochman said:
“Medtronic has been an excellent strategic collaborator for the AVIM Therapy program, and this funding further reinforces our long-term alignment under our strategic collaboration agreement. This funding and the structure of the agreement align capital investments with key regulatory and commercialization objectives as we and Medtronic continue our shared work to complete the BACKBEAT Trial and ultimately deliver AVIM Therapy to pacemaker-indicated patients with uncontrolled hypertension despite medication.”
Dr. Robert C. Kowal, VP and GM of Cardiac Pacing Therapies within the Medtronic Cardiac Rhythm Management business, said:
“The completion of this investment aligns with the strong clinical trial enrollment we’ve seen in the BACKBEAT Trial for AVIM Therapy. Our collaboration with Orchestra BioMed opens the door to bringing the benefits of pacing therapy to patients with needs beyond traditional rhythm management, offering the potential to treat hypertension and hypertensive heart disease.”
On Ligand’s investment, Hochman added:
“We and Ligand designed our strategic capital partnership to align funding with execution, and the receipt of this additional tranche from Ligand reflects continued and timely progress against that plan. We congratulate Ligand on an outstanding run of recent successes in its portfolio and its continued strategic growth. We believe Orchestra BioMed’s programs can contribute meaningfully to Ligand’s continued royalty growth in the next few years. As we advance both of our pivotal-stage programs, this type of partnership-driven capital enables us to remain focused on delivering results that enhance the long-term value potential of both AVIM Therapy and the Virtue platform.”
Todd Davis, Ligand CEO, said:
“We are pleased to complete this second tranche investment to Orchestra BioMed as the Company continues to advance pivotal trials for its two compelling, proprietary cardiovascular therapies, AVIM Therapy and Virtue SAB. Both device-based therapies have the potential to meaningfully improve outcomes for patients with significant unmet medical needs. Since our initial tranche investment, Orchestra has made strong progress, including continued acceleration of the BACKBEAT Trial enrollment, partnership realignment with Terumo, and the initiation of patient enrollment in the Virtue Trial. This progress reinforces our confidence in Orchestra BioMed’s ability to execute across both programs, and we look forward to key upcoming clinical and corporate milestones.”
