NEW HOPE, PA — Orchestra BioMed Holdings, Inc. (Nasdaq: OBIO) received a $20 million investment from Medtronic plc (NYSE: MDT) tied to the companies’ ongoing collaboration to develop a pacemaker-based treatment for uncontrolled hypertension.
The payment completes a previously disclosed Medtronic financing commitment supporting the BACKBEAT global pivotal trial, which is evaluating Orchestra BioMed’s atrioventricular interval modulation, or AVIM, therapy in patients with hypertension who also require pacemakers.
The funding was issued through a secured subordinated promissory note that converts into a capped prepaid revenue-sharing arrangement if the therapy receives approval from the U.S. Food and Drug Administration.
Under the agreement, Medtronic would recover the investment through a low double-digit percentage of AVIM therapy revenue shared with Orchestra BioMed, capped at $40 million in cumulative payments.
The company stated that the Medtronic investment, combined with a separately announced $15 million payment from Ligand Pharmaceuticals Incorporated, brought total strategic capital received on May 1 to $35 million.
AVIM therapy is being studied as a potential treatment for patients with uncontrolled hypertension despite medication use. The therapy uses pacemaker programming to alter cardiac timing intervals in an effort to reduce blood pressure.
Robert Kowal, a vice president within Medtronic’s cardiac rhythm management business, pointed to enrollment progress in the BACKBEAT trial as a factor behind the investment milestone.
“Our collaboration with Orchestra BioMed opens the door to bringing the benefits of pacing therapy to patients with needs beyond traditional rhythm management,” Kowal said in a statement.
Orchestra BioMed Chief Executive Officer David Hochman noted that the financing structure ties funding to regulatory and commercialization milestones as development of the AVIM therapy program advances.
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