NEW HOPE, PA — Orchestra BioMed Holdings, Inc. (Nasdaq: OBIO) announced $70 million in new capital commitments from Ligand Pharmaceuticals (Nasdaq: LGND) and Medtronic (NYSE: MDT), bolstering its efforts to develop advanced cardiovascular therapies. The funding supports late-stage clinical programs for the company’s flagship technologies, AVIM therapy and Virtue SAB, both aimed at treating high-risk heart patients.
The funding includes a $40 million commitment from Ligand, which combines a $35 million royalty-based investment with a $5 million equity purchase. Medtronic, a longtime strategic partner of Orchestra BioMed, is contributing $30 million—$10 million in equity and $20 million via a convertible note tied to FDA approval milestones.
In tandem with the financing, Orchestra and Medtronic have expanded their existing partnership to explore integrating AVIM therapy with Medtronic’s leadless pacemaker technology. This move could significantly advance care for patients requiring pacemakers who also suffer from uncontrolled hypertension.
Ligand Backs Future Royalties and Equity Stake
Ligand’s $40 million investment positions it to benefit from future commercial success of Orchestra’s therapies. Under the deal, Ligand will initially invest $20 million, with an additional $15 million contingent on specific conditions nine months post-closing. The agreement also includes a $5 million equity buy-in during Orchestra’s next public offering.
In return, Ligand is set to receive a royalty stream: a low double-digit percentage on the first $100 million in combined sales of AVIM therapy and Virtue SAB, and a mid-single-digit royalty on revenue above that threshold.
Ligand CEO Todd Davis described the partnership as a strategic fit. “This investment expands our pipeline of development-stage products and demonstrates our confidence in Orchestra BioMed’s scientific advancements, as well as the strong capabilities of its partner, Medtronic,” he said.
Orchestra BioMed CEO David Hochman welcomed the support. “Ligand’s decision to invest in our partnered programs and our team reflects our shared conviction in the transformative potential of both AVIM therapy and Virtue SAB,” Hochman said.
Medtronic Deepens Financial and Strategic Partnership
Medtronic’s $30 million commitment is split between a $10 million equity purchase and a $20 million promissory note that will convert into a prepaid revenue share if AVIM therapy receives FDA approval. The revenue share would be recouped by Medtronic through a percentage of actual revenue, capped at $40 million.
The companies have also amended their collaboration agreement to explore development of AVIM-enabled leadless pacemakers. These devices, such as Medtronic’s Micra™, are implanted directly into the heart without the use of wires—offering a less invasive and potentially safer option for patients.
“This expanded investment in Orchestra BioMed reflects confidence in their clinical progress,” said Dr. Robert Kowal, Vice President and General Manager of Cardiac Pacing Therapies at Medtronic. “Broadening our collaboration to include integrating AVIM therapy into future leadless pacing technology reaffirms our commitment to transform care for patients who need pacing therapy and have uncontrolled hypertension.”
Orchestra CEO Hochman called Medtronic’s continued investment “a strong signal” of belief in the commercial potential of AVIM therapy. He added, “Expanding our existing collaboration to provide for potential future integration of AVIM therapy into a leadless pacemaker system deepens our strategic alignment.”
Targeting Major Health Challenges
AVIM therapy and Virtue SAB address two widespread and serious cardiovascular conditions: uncontrolled hypertension and coronary artery disease. The company’s approach leverages device-based treatments that integrate with existing cardiac interventions, potentially improving outcomes for patients with complex cardiovascular risk profiles.
With financial backing from Ligand and Medtronic, Orchestra BioMed is positioned to pursue key clinical milestones and regulatory approvals that could bring these technologies to market.
As pressure grows to address global cardiovascular health challenges, the latest round of strategic investment underscores investor confidence in Orchestra’s platform—and the broader promise of next-generation interventional therapies.
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