Orchestra BioMed Holdings Inc. (NASDAQ: OBIO) received a $15 million payment from Ligand Pharmaceuticals Inc. (NASDAQ: LGND) under a previously disclosed royalty-based financing agreement, the company announced.

The payment represents the second scheduled tranche under the Revenue Participation Right Purchase and Sale Agreement, bringing total capital received from Ligand to $40 million. This includes an initial $20 million received in August 2025, $15 million from the current tranche, and $5 million from an equity private placement.

The funding supports Orchestra BioMed's pivotal trials for two cardiovascular therapies: Atrioventricular Interval Modulation Therapy and Virtue Sirolimus AngioInfusion Balloon. Both treatments are currently undergoing randomized, controlled pivotal trials.

Combined with a separate $20 million investment from Medtronic (NYSE: MDT) announced the same day, Orchestra BioMed received $35 million in strategic capital on May 1, 2026, under previously disclosed agreements.

"We and Ligand designed our strategic capital partnership to align funding with execution, and the receipt of this additional tranche from Ligand reflects continued and timely progress against that plan," said David Hochman, Chairman and Chief Executive Officer of Orchestra BioMed.

Todd Davis, Chief Executive Officer of Ligand, noted the company's progress including continued enrollment acceleration in the BACKBEAT Trial, partnership realignment with Terumo, and initiation of patient enrollment in the Virtue Trial.

Under the agreement, Ligand receives a tiered royalty interest in Orchestra BioMed's future revenue. The $15 million payment completes Ligand's $35 million royalty financing commitment under the agreement.