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Orchestra BioMed Holdings (OBIO) Conference Transcript
OBIOOrchestra BioMed (OBIO)2025-05-22 16:32

Summary of Orchestra BioMed Holdings (OBIO) Conference Call Company Overview - Company Name: Orchestra BioMed Holdings (OBIO) - Ticker Symbol: OBIO - Founded: 2018 - Business Model: Leveraging partnerships with established market leaders in the medical device space to drive commercialization of products, focusing on generating revenue through long-term revenue shares with partners [3][5][41] Key Programs 1. Atrioventricular Interval Modulation (AVIM) Therapy - Target Condition: High blood pressure (hypertension) in older, high-risk patients - Addressable Market: Estimated at 17billionworldwide[4]−∗∗EfficacyData∗∗:Strongstatisticallysignificantresultsfromphasetwodouble−blindstudies;currentlyenrollingpatientsintheBackBeatglobalpivotalstudy[4][28]−∗∗FDADesignation∗∗:Recentlyawardedbreakthroughdevicedesignation[5][22]−∗∗Partnership∗∗:CollaboratingwithMedtronic,aleaderinpacemakertechnology,withadouble−digitrevenueshare[5][15]−∗∗MarketOpportunity∗∗:−ImmediatemarketopportunityforAVIMtherapyisapproximately17 billion worldwide [4] - **Efficacy Data**: Strong statistically significant results from phase two double-blind studies; currently enrolling patients in the BackBeat global pivotal study [4][28] - **FDA Designation**: Recently awarded breakthrough device designation [5][22] - **Partnership**: Collaborating with Medtronic, a leader in pacemaker technology, with a double-digit revenue share [5][15] - **Market Opportunity**: - Immediate market opportunity for AVIM therapy is approximately 2 billion, targeting 750,000 patients who receive pacemakers annually [13] - Broader market potential includes over 3.7 million patients globally with hypertension and increased cardiovascular risk, representing a potential market of over 15billion[15]−∗∗RevenuePotential∗∗:Projectedroyaltystreamofupto15 billion [15] - **Revenue Potential**: Projected royalty stream of up to 750 million annually based on a 1,000averageroyaltyperdevicesold[19]2.VirtuSirolimusAngioInfusionBalloon(SAB)−∗∗TargetCondition∗∗:Treatmentofcoronaryandperipheralarterydisease−∗∗InitialMarketSize∗∗:Estimatedat1,000 average royalty per device sold [19] 2. Virtu Sirolimus Angio Infusion Balloon (SAB) - **Target Condition**: Treatment of coronary and peripheral artery disease - **Initial Market Size**: Estimated at 4 billion annually [6] - Efficacy Data: Strong safety and efficacy data from multicenter pilot studies; recently received FDA approval to run the Virtu trial against Boston Scientific's paclitaxel-coated balloon [6][32] - Partnership: Collaborating with Terumo, with a high revenue share [40] - Market Shift: Transitioning from drug-eluting stents to drug-coated balloons, with Virtu positioned as a best-in-class product [31][33] Industry Context - Market Dynamics: Medtech companies spend significantly less on R&D compared to biopharma, with averages of 7% versus 20% of revenue [7] - Competitive Landscape: Medtronic faces competition from companies like Abbott and Boston Scientific, which often engage in discounting strategies to secure market share [46] Additional Insights - Clinical Impact: AVIM therapy aims to provide significant clinical benefits without the side effects associated with traditional drug therapies [44] - Regulatory Pathway: The BackBeat study is expected to establish a new standard of care for blood pressure management in the pacemaker population [29] - Future Opportunities: Potential applications for Virtu in treating below-the-knee artery disease, addressing a high unmet medical need [48] Conclusion - Orchestra BioMed is positioned for significant growth through its innovative therapies and strategic partnerships, particularly with Medtronic and Terumo, while addressing critical healthcare needs in hypertension and coronary artery disease [41][42]