Orchestra BioMed, Terumo enter new $30M Virtue SAB agreements

Orchestra BioMed (OBIO) announced that it has entered into a termination and right of first refusal agreement with Terumo Corporation and Terumo Medical Corporation with respect to Virtue Sirolimus AngioInfusion Balloon for the treatment of coronary artery disease worldwide. The ROFR Agreement, which supersedes and terminates the prior Virtue SAB distribution agreement between Orchestra BioMed and Terumo, grants Terumo a right of first refusal to acquire the rights, or enter a distribution arrangement, with respect to Virtue SAB for the treatment of coronary artery disease, in exchange for an upfront payment of $10 million. Terumo and Orchestra BioMed have also entered into a securities purchase agreement, pursuant to which Terumo has agreed to invest an additional $20 million in Orchestra BioMed through a new series of non-voting preferred stock, which is convertible into common stock in the future, subject to certain conditions, at a minimum of $12 per share. Terumo previously made a $30 million non-refundable payment and $5 million common stock investment in Orchestra BioMed upon execution of the Prior Agreement.