Hot on the heels of inking an international distribution deal with Terumo, Orchestra BioMed has secured $34 million in new funding for its devices aimed at high blood pressure and blocked arteries.
The series B-1 raise, and its previous series B round, also provide for follow-on investments of up to $57 million in the company. The latest preferred stock financing was led by Perceptive Advisors, RTW Investments and Soleus Capital, alongside additional backing from Terumo and previous investor SternAegis Ventures.
The funds will be put toward the development of Orchestra’s pipeline assets—including the subject of its partnership with Terumo, the Virtue sirolimus-eluting balloon system for re-opening coronary and peripheral arteries—as well as its BackBeat cardiac neuromodulation therapy for hypertension. In addition, Orchestra hopes to apply its sustained-release sirolimus technology to other procedures.
In April, the FDA granted the Virtue angioplasty system a breakthrough designation for its use in coronary arteries that have clogged after the placement of a stent. Orchestra and Terumo said they are planning to launch a U.S. trial for the indication within the next year.
Their partnership, announced last month, included a $30 million upfront payment plus a $5 million equity investment, with the Tokyo-based Terumo signing on to additional milestones following the successful completion of a global clinical program.
The two companies also plan to expand Virtue’s clinical development to cover small coronary vessels and peripheral artery disease below-the-knee, in the U.S., Japan, China and other markets. Meanwhile, a randomized study of the BackBeat system is scheduled to report six-month hypertension data later this year, according to Orchestra.
“We are now well-positioned to accelerate and expand product development, not just for our lead programs, Virtue SEB and BackBeat CNT, but for our technology pipeline, which we expect to translate over time into multiple future product development and partnership opportunities and significant future cash flows,” Darren Sherman, Orchestra’s president, COO and founder, said in a statement.
“A key focus for Orchestra BioMed moving forward will be clinical and regulatory execution. We are looking forward to launching multiple global clinical studies over the next several years to fully explore the clinical benefits of Virtue SEB for artery disease and BackBeat CNT for hypertension,” Sherman added. “We are also selectively looking to acquire or in-license additional high-impact product candidates that fit our partnership-focused business model.”