Orchestra BioMed (OBIO) Jefferies London Healthcare Conference 2024 summary

Business model and partnership strategy

• Adopts a pharma-style partnership model in MedTech, focusing on late-stage collaborations with large commercial partners to share risk and reward.

• Prioritizes capital efficiency and long-term pipeline diversification by leveraging clinical data and established commercial platforms.

• Partnerships with Medtronic and Terumo enable access to large markets and operational support without diluting partner P&Ls.

• Revenue is generated through defined royalty structures, with potential for hundreds of millions in royalties per year.

• Model aims to drive innovation and organic growth in MedTech by aligning interests and sharing execution responsibilities.

Lead programs and clinical progress

• AVIM therapy uses existing dual-chamber pacemakers to lower blood pressure in hypertensive patients, targeting a population with high comorbidity.

• Clinical data from the MODERATO II study showed an 11 mmHg reduction in ambulatory systolic blood pressure, with significant superiority over control.

• Pivotal BACKBEAT study is enrolling up to 500 patients, with expanded eligibility and strong physician engagement.

• Top-line data from the pivotal study is expected to be clarified by March, with primary endpoints focused on blood pressure reduction and safety at three months.

• AVIM offers a complementary therapy to Medtronic's renal denervation, targeting older, high-risk patients and expanding the continuum of care.

Economic and market impact

• Royalty per AVIM-enabled device ranges from $500 to $1,600, with higher returns in the U.S., Japan, and China.

• Potential for additional reimbursement through breakthrough pathways and add-on payments, enhancing market opportunity.

• First market opportunity for AVIM in pacemaker patients estimated at $2 billion, with further expansion possible.

• Medtronic partnership positions both parties for significant upside if clinical and commercial milestones are met.