Orchestra BioMed receives $20 million from Medtronic

NEW HOPE, Pa. - Orchestra BioMed Holdings, Inc. (NASDAQ:OBIO) announced today it received a $20 million investment from Medtronic, plc. (NYSE:MDT) under a previously disclosed strategic financing agreement. Medtronic, with a market capitalization of $99.9 billion and annual revenue of $35.5 billion, is a prominent player in the Healthcare Equipment & Supplies industry.

The payment completes a scheduled tranche and supports the BACKBEAT Global Pivotal Trial, which evaluates Atrioventricular Interval Modulation Therapy for patients with uncontrolled hypertension who have an indication for a pacemaker. The investment fulfills Medtronic’s previously disclosed funding commitment.

The $20 million was provided in exchange for a secured subordinated promissory note convertible to capped prepaid revenue share, according to a press release statement. The note automatically converts to a prepaid revenue share upon U.S. Food and Drug Administration approval of AVIM Therapy. The prepaid revenue share will be credited back to Medtronic at a low double-digit percentage of actual AVIM Therapy revenue share paid to Orchestra BioMed, up to $40 million in cumulative revenue share.

"The completion of this investment aligns with the strong clinical trial enrollment we’ve seen in the BACKBEAT Trial for AVIM Therapy," said Robert C. Kowal, Vice President and General Manager of Cardiac Pacing Therapies within the Medtronic Cardiac Rhythm Management operating unit.Medtronic shares currently trade at $77.79, near their 52-week low, though InvestingPro analysis suggests the stock is undervalued based on its Fair Value estimate. The company has maintained dividend payments for 50 consecutive years, currently yielding 3.65%. Investors can access additional insights through InvestingPro’s comprehensive Pro Research Report, available for MDT and 1,400+ other US equities.

David Hochman, Chairman and Chief Executive Officer of Orchestra BioMed, stated the funding reinforces long-term alignment under the strategic collaboration agreement.

The company also announced it received a separate $15 million payment from Ligand Pharmaceuticals on May 1, 2026, representing a total of $35 million in strategic capital received under previously disclosed agreements.

Orchestra BioMed is conducting pivotal clinical trials for AVIM Therapy and its Virtue Sirolimus AngioInfusion Balloon. AVIM Therapy has received FDA Breakthrough Device Designations for treatment of uncontrolled hypertension in pacemaker-indicated patients.

In other recent news, Medtronic has received CE mark approval for its Stealth AXiS surgical system, allowing the company to market this integrated surgical platform across Europe. This follows earlier U.S. FDA clearances, marking a significant step for Medtronic in expanding its surgical system offerings. Additionally, Medtronic experienced a cybersecurity breach, with an unauthorized third party accessing certain IT systems. The company quickly contained the incident, ensuring there was no impact on its products, patient safety, or operations.

Medtronic confirmed that the cyberattack did not affect its ability to meet patient needs and is not expected to materially impact its business or financial results. In terms of financial analysis, Jefferies has lowered its price target for Medtronic to $95 from $108, maintaining a Hold rating due to IPO timing and associated expenses. UBS also reduced its price target to $90 from $104, citing the dilution impact from the MMED IPO. Both firms have adjusted their earnings estimates to reflect these developments.

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