Orchestra BioMed to Go Public in Merger, Partner with Medtronic

Cardiac device maker Orchestra BioMed intends to go public via a merger with SPAC Health Science Acquisitions Corp. 2. The deal values the combined company with a pro forma value of $158 million. The combined company is expected to be listed on Nasdaq under the ticker symbol “OBIO”.
 
The company also raised $110 million through Series D fundraising and entered a partnership with Medtronic to develop its BackBeat Cardiac Neuromodulation Therapy (CNT) as a treatment for hypertension in patients indicated for a cardiac pacemaker.
 
Medtronic will provide Orchestra BioMed with development, clinical, and regulatory support for a planned multi-national study. On regulatory approval, Medtronic will have global rights to commercialize BackBeat CNT-enabled pacing systems for the study’s target population.
 
The Series D round was led by RTW Investments and Perceptive Advisors, and joined by Medtronic and Terumo. The private equity financing and merger are expected to raise proceeds of at least $180 million, which Orchestra said should be sufficient to fund the combined company.
 
“These significant transactions further validate the potential of Orchestra BioMed’s flagship development programs and our novel partnership-enabled business model. As the global leader in advanced cardiac pacing therapies, Medtronic is the ideal company to help us develop BackBeat CNT for the treatment of hypertension, which is remarkably common and drives significant health risk in the pacemaker population,” Orchestra BioMed chairman, CEO and co-founder David Hochman told the press. “This new collaboration along with our established strategic partnership with Terumo for the development and commercialization of Virtue Sirolimus AngioInfusion Balloon (SAB) for the treatment of artery disease exemplify our commitment to developing potential high-impact medical innovations with global medical technology leaders. The capital proceeds from our Series D financing and planned Business Combination provide Orchestra BioMed with a substantial financial runway and position us to achieve major milestones.”
 
In the recent MODERATO II study, using BackBeat CNT for hypertension demonstrated net reductions of 8.1 mmHg in 24-hour ambulatory systolic blood pressure (aSBP) and 12.3 mmHg in office systolic blood pressure (oSBP) when compared to control patients at six months.