Orchestra BioMed secures $70 million from Ligand and Medtronic

NEW HOPE, Pa. - Orchestra BioMed Holdings, Inc. (NASDAQ:OBIO) announced Thursday it has secured $70 million in new capital from Ligand Pharmaceuticals (NASDAQ:LGND) and Medtronic (NYSE:MDT) to advance its late-stage partnered cardiology programs. Ligand, which maintains a strong financial health score according to InvestingPro analysis, has seen its stock rise over 26% year-to-date, demonstrating robust market confidence.

Ligand will invest $40 million, including $20 million at closing and $15 million at the nine-month anniversary of closing, subject to conditions. The company will also invest an additional $5 million in Orchestra BioMed’s next public equity offering. In exchange, Ligand will receive a low double-digit royalty on the first $100 million in commercial revenues from Orchestra’s AVIM therapy and Virtue SAB programs, and a mid-single-digit royalty on annual revenues exceeding $100 million. With a healthy current ratio of 5.27 and minimal debt-to-equity ratio, Ligand appears well-positioned to fulfill its investment commitments.

Medtronic’s $30 million investment includes $10 million for shares in Orchestra BioMed’s next public equity offering and a $20 million commitment for a secured subordinated promissory note that will convert to a prepaid revenue share upon FDA approval of AVIM therapy.

The companies have also expanded their existing strategic collaboration to include potential development of AVIM therapy-enabled leadless pacemakers. AVIM therapy is designed to lower blood pressure in patients with hypertension who require pacemakers.

"Ligand has been one of the inspirations for our partnership-driven approach to creating long-term, capital-efficient value through royalty-based collaborations," said David Hochman, Chairman and CEO of Orchestra BioMed. For detailed analysis of Ligand’s financial metrics and growth potential, investors can access comprehensive research through InvestingPro, which offers exclusive insights and Fair Value estimates for over 1,400 US stocks.

The funding will support Orchestra BioMed’s late-stage programs, including AVIM therapy for hypertension and Virtue SAB for arterial disease. Both technologies have received Breakthrough Device Designations from the FDA. With analysts projecting profitability for Ligand this year and revenue growth of 18%, the investment aligns with the company’s strategic expansion plans.

The announcement was made in a company press release.

In other recent news, Ligand Pharmaceuticals reported a strong start to 2025, exceeding expectations for its first-quarter earnings. The company posted an adjusted earnings per share (EPS) of $1.33, surpassing the anticipated $1.22, and achieved a total revenue of $45 million, well above the forecasted $37.92 million. Additionally, Ligand has completed a merger involving its subsidiary LNHC, Inc. and Channel Therapeutics Corporation’s subsidiary, with the merged entity now operating as Pelthos Therapeutics Inc. Pelthos has launched ZELSUVMI, the first FDA-approved at-home treatment for molluscum contagiosum, earning Ligand a $5 million milestone payment. On the analyst front, Oppenheimer raised its price target for Ligand to $162, citing growth in royalty streams, while maintaining an Outperform rating. Stifel reiterated its Buy rating with a $143 price target, emphasizing Ligand’s strong position in the royalty financing sector. These developments highlight Ligand’s strategic moves and financial performance in the recent period.

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