Orchestra BioMed secures over $111M in proceeds, committed capital

Orchestra BioMed (OBIO) announced the 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 therapy and Virtue Sirolimus AngioInfusion Balloon 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 (LGND) Pharmaceuticals and Medtronic (MDT); 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 and $11.2 million and $5 million received from private placements of common stock to Medtronic and Ligand, respectively. 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 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; 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.