Orchestra BioMed, Inc., a biomedical innovation company providing high-impact solutions for large unmet needs in procedure-based medicine, announced that it has entered into a $20 million credit facility agreement with Silicon Valley Bank (SVB), the bank of the world’s most innovative companies and their investors. This agreement provides up to $20 million of new capital to the Company for development and general corporate purposes, with an initial up to $10 million draw available at Orchestra BioMed’s sole option during the next 12 months and the remainder available to the Company following the completion of certain milestones.
The new $20 million credit facility adds to the capital resources available to Orchestra BioMed to accelerate product pipeline development and advance partnerships following the Company’s completion of a $34 million financing in July 2019. In June 2019, Orchestra BioMed also secured a $30 million payment and $5 million equity commitment as the upfront financial components of a global strategic partnership with Terumo Corporation to develop and commercialize Virtue® Sirolimus-Eluting Balloon (SEB), the first and only non-coated sirolimus-eluting angioplasty balloon system, in the percutaneous coronary and peripheral interventions fields. The U.S. Food and Drug Administration (FDA) granted Virtue SEB Breakthrough Designations for the treatment of coronary in-stent restenosis and below-the-knee peripheral artery disease. In September 2019, Orchestra BioMed announced CE mark approval for its Moderato® implantable pulse generator system that delivers BackBeat Cardiac Neuromodulation Therapy™ (CNT™) for the treatment of hypertension. The Company presented late-breaking clinical trial results at the TCT 2019 Conference demonstrating that BackBeat CNT drove statistically significant and clinically meaningful reduction in 24-hour ambulatory systolic blood pressure vs. control in hypertensive patients also indicated for a pacemaker.
“The terms of the $20 million credit facility demonstrate SVB’s appreciation of our products and business model and a desire to forge a partnership with Orchestra BioMed to help support our future growth,” said David Hochman, chairman, CEO and founder of Orchestra BioMed. “We are excited about this creative lending solution that enhances an already strong capital position and bolsters our ability to optimize future pipeline opportunities.”
“Orchestra BioMed is committed to bringing innovative solutions to cardiovascular health and other significant procedure-based medical markets,” said Clark Hayes, managing director, Northeast Head of Business Development, Life Science and Healthcare at Silicon Valley Bank. “SVB is pleased to provide this capital facility to support both the short- and long-term growth initiatives of the business.”