Orchestra BioMed raises $111 million through equity offerings and partnerships

Orchestra BioMed Holdings Inc. (NASDAQ: OBIO) completed strategic transactions totaling $111.2 million in gross proceeds to fund its late-stage clinical programs for cardiovascular treatments.

The funding consists of $56.2 million from a public offering and private equity purchases, plus $55 million in royalty-based investments from Medtronic plc (NYSE: MDT) and Ligand Pharmaceuticals Inc. (NASDAQ: LGND).

In the public offering that closed August 4, Orchestra BioMed sold 9,413,637 shares at $2.75 per share and pre-funded warrants for 5,136,363 shares at $2.7499 each. Medtronic purchased 4,077,427 shares and Ligand bought 1,818,181 shares in concurrent private placements at $2.75 per share.

The royalty-based investments include $35 million from Ligand for a tiered revenue interest in Orchestra BioMed's future royalties from its AVIM therapy and Virtue SAB programs. Medtronic committed $20 million through a secured subordinated promissory note convertible to a capped prepaid revenue share.

Orchestra BioMed plans to use the proceeds to complete enrollment for its BACKBEAT global pivotal study evaluating AVIM therapy for uncontrolled hypertension in pacemaker patients, and to advance enrollment in the Virtue Trial for coronary in-stent restenosis treatment. The company expects the funding to extend its cash runway into the second half of 2027.

The New Hope, Pennsylvania-based biomedical company develops cardiovascular technologies through partnerships with medical device companies. Its AVIM therapy and Virtue SAB programs have received four Breakthrough Device Designations from the FDA.

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