Orchestra BioMed raised approximately $86.3 million in a public stock offering, selling 17.25 million shares at $5 apiece. The financing is intended to support development of its cardiovascular programs, including a global pivotal trial for its hypertension therapy, with the remaining proceeds available for other research and corporate needs.
- Offering terms: Orchestra initially agreed to sell 15 million shares. Underwriters exercised their option in full for an additional 2.25 million shares, bringing the total to 17.25 million. The offering closed on November 9.
- Proceeds: Gross proceeds were approximately $86.3 million, before underwriting discounts, commissions and other expenses. The company did not state the net proceeds.
- Planned use of funds: Orchestra plans to use the proceeds, together with existing cash, to fund its Atrioventricular Interval Modulation Therapy program and the BACKBEAT global pivotal trial. BACKBEAT is studying patients with uncontrolled hypertension who are indicated for a dual-chamber pacemaker.
- Other development priorities: Funds are also earmarked for the Virtue Sirolimus AngioInfusion Balloon program and its trial in coronary in-stent restenosis, as well as research and clinical development of other current or future product candidates. The balance is intended for working capital and general corporate purposes.
Implications: The raise provides capital for the company’s clinical programs but increases its share count. Existing shareholders’ ownership is diluted by the issuance of 17.25 million new shares; the company did not provide a dilution percentage.