Orchestra BioMed Secures $111 Million in Financing for Clinical Studies

Strategic Insights -

Orchestra BioMed has secured $111 million in financing through a series of transactions and offerings, with key support from Medtronic and Ligand Pharmaceuticals. The funding will be used to complete late-stage clinical studies for Orchestra's bioelectronic, pacemaker-like BackBeat therapy for lowering high blood pressure. The therapy has previously demonstrated a 10.3 mmHg reduction in 24-hour systolic blood pressure after six months in a study of 14 patients.

Key Takeaways:

  • Orchestra BioMed secured $111 million in financing through a series of transactions and offerings, including $40 million from a public offering and $16 million in private placements of common stock to Medtronic and Ligand.
  • Medtronic committed to deliver an additional $20 million by next May in exchange for a promissory note that would convert to a prepaid revenue share upon FDA approval of BackBeat therapy.
  • The funding will be used to fund the full enrollment of a global pivotal trial of BackBeat's atrioventricular interval modulation approach (AVIM) and support the study's follow-up measures to evaluate its primary endpoints.
  • Orchestra's BackBeat neuromodulation therapy is designed to integrate with existing cardiac rhythm implants and has previously demonstrated a 10.3 mmHg reduction in 24-hour systolic blood pressure after six months in a study of 14 patients.
  • Medtronic has picked up an exclusive license and collaboration agreement with Orchestra for the development and commercialization of BackBeat, with the companies expanding the collaboration to develop AVIM-capable leadless pacemakers.
  • Ligand committed $35 million in return for a tiered revenue interest in future royalties tied to Orchestra's BackBeat and Virtue sirolimus-equipped balloon.
  • Orchestra is developing the Virtue angioplasty therapy with Terumo Corporation via a partnership launched in 2019.

Statistics:

  • $111 million: The amount of financing secured by Orchestra BioMed through a series of transactions and offerings.
  • $40 million: The amount of funding raised through a public offering.
  • $16 million: The amount of private placements of common stock to Medtronic and Ligand.
  • $20 million: The additional funding committed by Medtronic to be delivered by next May.
  • 10.3 mmHg: The reduction in 24-hour systolic blood pressure demonstrated by BackBeat therapy after six months in a study of 14 patients.
  • 14 patients: The number of patients involved in the study of BackBeat therapy.

Sources:

  • "Orchestra BioMed announced that it has secured over $111 million in financing..."

• [1] Orchestra BioMed. Orchestra BioMed Secures $111 Million in Financing for Clinical Studies.