Shareholder Call Series: Part 1 — Building a Strong Capital Base and Strategic Alignment for Long-Term Growth

Shareholder Call Series: Part 1 — Building a Strong Capital Base and Strategic Alignment for Long-Term Growth

Dear Shareholders,

This blog is the first of a two-part summary from Chairman and CEO David Hochman’s recent shareholder update call, which offered a detailed perspective on Orchestra BioMed’s progress through what has been a highly productive and strategically defining year.

While the Company’s third-quarter financial results reflect disciplined execution, the call focused not on quarterly numbers, but on how Orchestra BioMed’s financing, partnerships, and pivotal-stage programs are shaping long-term value creation.

In this first part, we summarize the discussion of recent financing success and strategic alignment — how Orchestra BioMed has strengthened its capital foundation and optimized partnerships to advance its flagship programs, AVIM Therapy and Virtue SAB, from a position of operational and financial strength.

Strategic Financing Designed to Protect Shareholder Value:

• Multi-component financing led by Medtronic and Ligand:
  The August financing package combined $55 million in strategic capital commitments and $62.6 million in equity proceeds from an oversubscribed public offering and concurrent private placements. Medtronic and Ligand acted as cornerstone investors, underscoring their confidence in Orchestra BioMed’s ability to successfully advance both pivotal programs.
  
  
• Favorable terms and long-term structure:
  Medtronic’s additional $20 million commitment was structured as a long-term note that converts upon FDA approval of AVIM Therapy to a capped $40 million revenue share credit, effectively linking return of capital to clinical success limiting equity dilution. Medtronic has now committed more than $80 million to Orchestra BioMed and the AVIM Therapy partnership.
  
  
• Introduction of Ligand as a long-term strategic capital partner:
  Ligand’s $35 million investment commitment to Orchestra’s future royalty streams — coupled with $5 million of direct equity — reflects a long-term belief in the commercial potential of AVIM Therapy and Virtue SAB. Ligand’s royalty-based business model aligns closely with Orchestra BioMed’s own partnership-enabled approach.
  
  
• New rights agreement with Terumo:
  In November, Orchestra BioMed and Terumo executed new strategic rights and preferred stock purchase agreements providing an additional $30 million in proceeds as well as granting Terumo a right of first refusal on certain Virtue SAB transactions in the coronary market and terminating Orchestra BioMed’s previous distribution agreement with Terumo. The preferred stock is convertible into common stock at a minimum price of $12/share only after Orchestra reports Virtue Trial data and its share price has traded above $15 subsequent to the reporting of the Virtue Trial Data.

Together, these financings brought in approximately $147.6 million in gross proceeds and commitments, extending Orchestra BioMed’s cash runway into Q4 2027 and securing the resources needed to complete enrollment of both pivotal studies and reach key regulatory and clinical milestones.

Why Our Accomplishments Benefit Shareholders:

1. Financial Independence into Q4 2027 – Provides stability and flexibility to execute pivotal-stage programs without near-term capital dependency.
2. Strategic Validation from Industry Leaders – Expanded collaboration with Medtronic, new strategic capital relationship with Ligand, and new strategic rights agreement with Terumo underscores confidence in the Company’s platforms.
3. Disciplined Approach to Dilution – Financing structures protect shareholder value while ensuring capital is tied to performance milestones.
4. Alignment with Future Milestones – Returns to strategic partners in the future are directly linked to achieving value inflection points for our shareholders such as pivotal trial enrollment and data readouts for both AVIM Therapy and Virtue SAB.

Investor Takeaways and What Comes Next

These financial achievements reinforce Orchestra BioMed’s identity as a partnership-enabled medtech innovator - balancing capital efficiency with clinical ambition.

The Company enters 2026 well-capitalized, strategically validated, and focused on execution through multiple potential value inflection points.

In Part 2 of this series, we will summarize the second half of the call, where Mr. Hochman discussed Orchestra BioMed’s ongoing clinical progress - including updates on AVIM Therapy’s pivotal BACKBEAT study, the Virtue SAB U.S. pivotal trial, and the broader strategic significance of these programs for long-term shareholder value.

— Team OBIO

Published November 2025

Forward-Looking Statements

Certain statements included in the content distributed by Orchestra BioMed Holdings, Inc. (the “Company”) to which this disclaimer relates (including, but not limited to, visual, auditory, or written statements accessible through the link included in the Company’s digital communication) (the “Content”) that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements relating to our expected cash runway, enrollment, timing, implementation and design of the Company’s ongoing pivotal trials and reporting of top-line results, the potential benefits of regulatory approvals with respect to the Company’s product candidates and/or ongoing trials, the potential safety and efficacy of the Company’s product candidates, the ability of the Company’s partnerships to accelerate clinical development, the realization of the clinical and commercial value of the Company’s product candidates, the Company’s ability to achieve expected regulatory and business milestones and the expected benefits of the new Terumo agreement. These statements are based on various assumptions, whether or not identified in the Content, and on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and may differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political, and legal conditions; risks related to regulatory approval of the Company’s commercial product candidates and ongoing regulation of the Company’s product candidates, if approved; the timing of, and the Company’s ability to achieve expected regulatory and business milestones; the impact of competitive products and product candidates; and the risk factors discussed under the heading “Item 1A. Risk Factors” in the Company’s Form 10-K for the year ended December 31, 2024, and under the heading “Item 1A. Risk Factors” in our quarterly report on Form 10-Q for the quarter ended March 31, 2025. The Company operates in a very competitive and rapidly changing environment. New risks emerge from time to time. Given these risks and uncertainties, the Company cautions against placing undue reliance on these forward-looking statements, which only speak as of the date of the Content. The Company does not plan and undertakes no obligation to update any of the forward-looking statements made in the Content, except as required by law.