Orchestra BioMed Stock Plunges 10.13% Amid Public Offering

On August 1, 2025, Orchestra BioMed's stock experienced a significant drop of 10.13% in pre-market trading, reflecting investor concerns and market dynamics.

Orchestra BioMed recently announced a $40 million public offering, which includes 9.41 million common shares and 5.14 million pre-funded warrants. The offering is expected to close on August 4, 2025, with the company intending to use the proceeds for general corporate purposes and to fund ongoing research and development efforts.

Additionally, the company has granted underwriters a 30-day option to purchase up to an additional 15% of shares and pre-funded warrants sold in the offering. This move is aimed at providing flexibility and ensuring the success of the offering.

In a strategic partnership, Ligand and Medtronic have committed $70 million to Orchestra BioMed. Ligand will invest $35 million, including $20 million at closing and an additional $15 million subject to certain conditions. Medtronic will contribute $10 million in an equity private placement and an additional $20 million in a secured subordinated promissory note convertible to prepaid revenue share. This collaboration is expected to enhance the development of AVIM therapy-enabled leadless pacemakers, further strengthening Orchestra BioMed's position in the market.