Orchestra BioMed Holdings, Inc. (Nasdaq: OBIO), a biomedical innovation company focused on accelerating high-impact technologies through risk-sharing partnerships, has announced the successful completion of strategic funding initiatives and concurrent equity offerings totaling approximately $111.2 million in expected gross proceeds. These funds will support the continued clinical advancement of the Company’s two late-stage therapeutic programs: atrioventricular interval modulation (AVIM) therapy and the Virtue® Sirolimus AngioInfusion Balloon (SAB).
The $111.2 million raised through transactions finalized or committed to on August 4, 2025, includes:
$55 million in non-dilutive, royalty-based funding from Ligand Pharmaceuticals (Nasdaq: LGND) and Medtronic plc (NYSE: MDT), expected to be received by May 1, 2026, subject to certain conditions:
Ligand committed $35 million in exchange for a tiered revenue interest in future royalties from both AVIM therapy and Virtue SAB.
Medtronic committed $20 million via a secured subordinated promissory note, convertible into a capped prepaid revenue share.
$56.2 million raised through public and private equity offerings, including:
A $40 million underwritten public offering of common stock and prefunded warrants.
A $16.2 million private placement, with Medtronic investing $11.2 million and Ligand investing $5 million.
David Hochman, Chairman and CEO of Orchestra BioMed, commented, “We’re proud to secure this long-term strategic capital from both Medtronic and Ligand, and to complete our first underwritten public equity offering. These transactions reflect strong confidence from our partners and investors in the transformative potential of our late-stage therapies. With Ligand joining us as a royalty-focused capital partner and Medtronic deepening their commitment to our existing collaboration, we’re well-positioned to advance AVIM therapy and Virtue SAB toward key clinical and regulatory milestones.”
The Company plans to use the net proceeds to drive major development milestones, including:
Completing enrollment in the global pivotal BACKBEAT study evaluating AVIM therapy for patients with uncontrolled hypertension who require a pacemaker.
Finishing follow-up to assess the BACKBEAT study’s primary endpoints.
Completing or nearing full enrollment in the Virtue ISR trial evaluating the SAB for treating coronary in-stent restenosis.
In the public offering, which closed on August 4, 2025, Orchestra BioMed sold 9,413,637 shares of common stock at $2.75 per share, along with pre-funded warrants for 5,136,363 shares at $2.7499 each. In the private placement, Medtronic purchased 4,077,427 shares and Ligand 1,818,181 shares, also at $2.75 per share. The combined gross proceeds from both offerings were approximately $56.2 million, with net proceeds of about $51.8 million after deducting associated costs.