Orchestra BioMed Goes Public After $110 Million PE Fund Raise
The five-year-old biomedical innovation company debuted via SPAC last week after closing its series D financing in the middle of last year.
Source: Getty Images
By - Orchestra BioMed was introduced on the Nasdaq Global Market this month after completing its combination with the special purpose acquisition company Health Sciences Acquisitions Corporation 2. Gross proceeds and the $110 million earned through series D financing are expected to carry the company through to 2026.
Last year, Orchestra disclosed its partnership with Medtronic and concluded its most significant round of funding, drawing investment from private equity manager RTW Investments, Perceptive Advisors, Terumo, SternAegis Ventures, and others. “With two partnered programs expected to commence pivotal trials in 2023, we believe Orchestra BioMed is poised for success,” said Roderick Wong, MD, managing partner and chief investment officer of RTW Investments.
The Pennsylvania-based biomedical business has worked with its partners to produce a flurry of therapeutic applications since its founding, focusing on cardiac interventions and stent technology. Orchestra’s success stems from its targeting of mature therapeutic device markets and the creation of two flagship products.
“With a strong balance sheet, a top-flight shareholder base, and world-class strategic collaborators, this transaction puts us in an excellent position to address the unmet needs of patients and physicians while seeking to generate differentiated growth for our stockholders,” said the Chairman and CEO of Orchestra David Hochman. “We have several important milestones ahead of us, including the expected initiation of pivotal trials this year for both BackBeat Cardiac Neuromodulation Therapy (CNT) and Virtue Sirolimus AngioInfusion Balloon (VAB).”
The BackBeat CNT solution developed by Orchestra is designed to lower blood pressure immediately while modulating the autonomic nervous system. The product is intended to be incorporated into existing devices like a pacemaker without complex implant techniques. Medtronic partnered with Orchestra Biomed to create BackBeat CNT and agreed to receive the global rights to commercialize the technology pending regulatory approval.
Developed in 2019, Orchestra’s other innovation, the VAB, is a protected delivery system that supports the precision release of sirolimus to protect new stents and transplants. The advancement was achieved in collaboration with Terumo Corporation, one of the world’s largest medical device companies.
Orchestra’s VAB technology has received the FDA’s breakthrough therapy designation, which grants an expedited path toward review and approval. Additionally, the firm’s BackBeat CNT has obtained its CE mark allowing it to be sold in the 33 member states of the EU. The company also markets freehold retractors to optimize visualization during surgical procedures and avoid trauma associated with conventional retraction methods.
Going forward, Orchestra plans to incorporate its leading products into other procedure-based solutions for medical applications.
