Orchestra BioMed Reports 88% Revenue Decline and $44.4 Million Net Loss for First Half of 2026

Orchestra BioMed Holdings, Inc. reported a total revenue of $198,000 for the six months ended June 30, 2026, a significant decrease of 88% compared to $1.7 million in the same period of the previous year. The decline was primarily attributed to the termination of the partnership agreement with Terumo Corporation, which previously contributed partnership revenue. Product revenue also fell by approximately 35% to $198,000, down from $305,000, reflecting reduced sales volume of FreeHold’s intracorporeal organ retractors. The company incurred a net loss of $44.4 million for the first half of 2026, compared to a loss of $38.1 million in the same period in 2025.

In terms of expenses, total costs rose by 12% to $44.6 million, driven mainly by an 18% increase in research and development expenses, which reached $32.4 million. This increase was largely due to ongoing clinical trials for the company’s flagship products, AVIM Therapy and Virtue SAB. Selling, general, and administrative expenses slightly decreased by 3% to $12.2 million, reflecting a reduction in stock-based compensation. The company’s interest expenses surged significantly, resulting in a net interest expense of $2.6 million for the first half of 2026, compared to a net interest income of $130,000 in the prior year.

Operationally, Orchestra BioMed has been focusing on advancing its clinical trials, particularly the BACKBEAT Trial for AVIM Therapy and the Virtue Trial for Virtue SAB. The company is currently enrolling patients for these pivotal trials, with the BACKBEAT Trial expected to complete enrollment by the end of the third quarter of 2026. The company’s cash and cash equivalents, along with marketable securities, totaled $110 million as of June 30, 2026, providing a financial cushion to support ongoing operations and clinical activities.

Strategically, Orchestra BioMed has made significant moves, including entering into a loan agreement with Medtronic for $20 million and a royalty purchase agreement with Ligand Pharmaceuticals for $35 million. These agreements are expected to bolster the company’s financial position as it continues to develop its product candidates. The company also recognized a gain of $2.3 million from the sale of strategic investments related to Vivasure Medical Limited, which was acquired by Haemonetics Corporation.

Looking ahead, Orchestra BioMed anticipates continued operating losses as it invests heavily in research and development. The company expects its cash reserves to be sufficient to fund operations into the fourth quarter of 2027, although it may seek additional capital through equity or debt financing to support its growth initiatives. The management remains optimistic about the potential of its product candidates and their market opportunities, particularly in the hypertension and atherosclerotic artery disease sectors.