Orchestra BioMed receives $20 million from Medtronic under financing pact

Orchestra BioMed Holdings Inc. (NASDAQ: OBIO) received a $20 million payment from Medtronic plc (NYSE: MDT) under a previously disclosed strategic financing agreement, the company announced.

The payment represents completion of a scheduled tranche under the agreement and supports the BACKBEAT Global Pivotal Trial evaluating Atrioventricular Interval Modulation Therapy for patients with uncontrolled hypertension who require a pacemaker.

The funding fulfills Medtronic's previously disclosed commitment in exchange for a secured subordinated promissory note convertible to capped prepaid revenue share. The note automatically converts to a prepaid revenue share upon U.S. Food and Drug Administration approval of AVIM Therapy. The prepaid revenue share will be credited back to Medtronic at a low double-digit percentage of actual AVIM Therapy revenue share paid to Orchestra BioMed, up to $40 million in cumulative revenue share.

"The completion of this investment aligns with the strong clinical trial enrollment we've seen in the BACKBEAT Trial for AVIM Therapy," said Robert C. Kowal, Vice President and General Manager of Cardiac Pacing Therapies within the Medtronic Cardiac Rhythm Management operating unit.

Orchestra BioMed also announced it received $15 million from Ligand Pharmaceuticals under a separate agreement, bringing total strategic capital received to $35 million under previously disclosed agreements.

AVIM Therapy is designed to be delivered by a pacemaker to reduce blood pressure in patients with hypertensive heart disease. The therapy has received FDA Breakthrough Device Designations for patients with uncontrolled hypertension despite medication and increased cardiovascular risk.

The information is based on a company press release statement.

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