Orchestra BioMed™ Announces Strategic Collaboration, Closing of $110 Million Private Equity Financing and Plans to List on Nasdaq Through Merger with Health Sciences Acquisitions Corporation 2
Summary
Assuming the minimum pro forma cash balance, the combined company is expected to have sufficient capital to fund operations into 2026 based on current plans and estimates.These significant transactions further validate the potential of Orchestra BioMeds flagship development programs and our novel partnership-enabled business model. As the global leader in advanced cardiac pacing therapies, Medtronic is the ideal company to help us develop BackBeat CNT for the treatment of hypertension, which is remarkably common and drives significant health risk in the pacemaker population, said David Hochman, Chairman, CEO and Co-Founder of Orchestra BioMed. A recent double-blind, randomized pilot study published in the Journal of the American Heart Association (JAHA)1 showed that BackBeat CNT drove statistically significant and clinically meaningful reductions in blood pressure in its target patient population. Orchestra BioMed plans to conduct a global pivotal trial to further evaluate the safety and efficacy of the BackBeat CNT in lowering blood pressure in a similar target population of patients who have been indicated for, and recently received, a cardiac pacemaker implant. Assuming no redemptions are made, an additional $90 million may be available from HSAC2s trust account, providing maximum gross proceeds from the Business Combination and Series D transactions of $270 million to help fund the business.The boards of directors of both HSAC2 and Orchestra BioMed have unanimously approved the proposed transaction, which is subject to approval by HSAC2 and Orchestra BioMeds stockholders and the satisfaction or waiver of certain other customary closing conditions.Upon closing, HSAC2s current board of directors will resign and be replaced by Orchestra BioMeds current board of directors.The description of the Business Combination contained herein is only a summary and is qualified in its entirety by reference to the definitive agreement relating to the Business Combination, a copy of which will be filed by HSAC2 with the Securities and Exchange Commission (SEC) as an exhibit to a Current Report on Form 8-K, which can be accessed through the SECs website at www.sec.gov.Jefferies LLC and Piper Sandler & Co. acted as Joint Lead Placement Agents for the Series D Financing and Aegis Capital acted as Selling Agent.