Orchestra BioMed Holdings, Inc. (NASDAQ:OBIO, "Orchestra BioMed" or the "Company"))), a biomedical company accelerating high-impact technologies to patients through risk-reward sharing partnerships, today announced the successful completion of strategic transactions and concurrent public and private equity offerings totaling an expected $111.2 million in gross proceeds to support continued advancement of the Company's late-stage atrioventricular interval modulation ("AVIM") therapy and Virtue Sirolimus AngioInfusion Balloon ("SAB") clinical programs.
The aggregate $111.2 million in expected gross proceeds from transactions that formally closed or were committed to on August 4, 2025, is comprised of:
- $55 million received or to be received by May 1, 2026, subject to certain conditions, from royalty-based, non-dilutive investments from Ligand Pharmaceuticals Incorporated (NASDAQ:LGND, "Ligand"))) and Medtronic, plc. (NYSE:MDT, "Medtronic")))
- Ligand committed $35 million in exchange for a tiered revenue interest in Orchestra BioMed's future royalties from AVIM therapy and Virtue SAB
- Medtronic committed $20 million in exchange for a secured subordinated promissory note convertible to capped prepaid revenue share
- $56.2 million received from a $40 million underwritten public offering of common stock and prefunded warrants (the "Public Offering") and $11.2 million and $5 million received from private placements of common stock to Medtronic and Ligand, respectively (collectively, the "Private Placement")
"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, Chairman and Chief Executive Officer 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 currently intends to use the net proceeds from these transactions to fund potential significant value-creating catalysts, including:
- Full enrollment of the BACKBEAT global pivotal study ("BACKBEAT study") evaluating AVIM therapy for the treatment of uncontrolled hypertension in patients indicated for a pacemaker
- Completion of follow-up for the BACKBEAT study primary endpoints
- Completion or near-completion of enrollment of the Virtue Trial evaluating Virtue SAB in the treatment of Coronary in-stent restenosis (ISR)
In the Public Offering, which closed on August 4, 2025, Orchestra BioMed sold 9,413,637 shares of its common stock at a price of $2.75 per share, and, in lieu of shares of common stock to certain investors, pre-funded warrants to purchase up to an aggregate of 5,136,363 shares of common stock at a price of $2.7499 per pre-funded warrant. Medtronic purchased 4,077,427 shares, and Ligand purchased 1,818,181 shares also at $2.75 per share in the Private Placement. The gross proceeds from the Public Offering and Private Placement combined were approximately $56.2 million, with net proceeds of approximately $51.8 million after deducting underwriting discounts, commissions, placement fees and offering expenses.