Orchestra BioMed Holdings, Inc., a biomedical innovation company, reported a significant increase in partnership revenue for the year ended December 31, 2025, reaching $32.9 million compared to $2.0 million in the previous year. This surge is primarily attributed to the termination of the Terumo Agreement, resulting in the recognition of previously deferred revenue, as well as $10.0 million in consideration for a right of first refusal and $7.4 million related to a premium on Series A Preferred Stock. Product revenue, however, experienced a slight decrease of 3%, falling to $611,000 from $633,000 in 2024, due to lower sales volume of FreeHold Duo and Trio retractors.
The company's research and development expenses rose by 36% to $58.2 million in 2025, driven by ongoing clinical trial activities for AVIM Therapy (BACKBEAT study) and Virtue SAB (Virtue Trial). Selling, general, and administrative expenses also increased by 12% to $26.9 million, reflecting higher accounting, legal, and personnel costs associated with operating as a public company. Interest expense, net, shifted from income of $3.4 million in 2024 to an expense of $1.1 million in 2025, primarily due to interest expenses related to the Royalty Purchase Agreement with Ligand. Despite the revenue increase, the company reported a net loss of $52.7 million for 2025, compared to a net loss of $61.0 million in 2024.
Key strategic developments included the termination of the Terumo Agreement and a new right of first refusal agreement, as well as a $20.0 million investment from Terumo through Series A Preferred Stock. Ligand Pharmaceuticals invested $35.0 million in exchange for tiered revenue payments on AVIM Therapy and Virtue SAB, alongside a $5.0 million equity investment. Medtronic made an additional equity investment of $11.6 million and committed $20 million in exchange for a secured subordinated promissory note convertible to a capped revenue share credit. These financial transactions are intended to support the ongoing clinical trials and future commercialization efforts.
Operationally, Orchestra BioMed is focused on advancing its flagship product candidates, AVIM Therapy and Virtue SAB, through pivotal clinical trials. The BACKBEAT study, designed to evaluate AVIM Therapy for hypertension in pacemaker patients, is expected to complete enrollment by mid-2026. The Virtue Trial, assessing Virtue SAB for coronary in-stent restenosis, initiated patient enrollment in October 2025 and anticipates enrollment completion by mid-2027. As of December 31, 2025, the company had 86 employees.
Looking ahead, Orchestra BioMed anticipates that its existing cash, marketable securities, and committed funding will be sufficient to fund operations into the fourth quarter of 2027. The company's growth strategy centers on executing key development initiatives, securing strategic partnerships, and advancing its product pipeline to significant value inflection points. The company also owns minority equity interests in other therapeutic device assets, including FreeHold Surgical and Motus GI, with the goal of realizing additional stockholder value.
About Orchestra BioMed Holdings, Inc.
Orchestra BioMed Holdings, Inc. develops innovative medical devices and bioelectronic therapies targeting large markets such as hypertension and artery disease. Its core products include AVIM therapy, a device-based hypertension treatment integrated into pacemakers, and Virtue SAB, a drug/device combo for artery disease. The company partners with industry leaders like Medtronic and Terumo to accelerate product development, commercialization, and global market access.
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