Orchestra BioMed Holdings, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, expenses, and net losses compared to the previous fiscal period.

For the three months ended September 30, 2024, total revenue increased to $987,000, a substantial rise from $419,000 in the same period of 2023. This growth was primarily driven by a 196% increase in partnership revenue, which reached $803,000, compared to $271,000 in the prior year. However, for the nine months ended September 30, 2024, total revenue decreased to $2,385,000, down from $2,498,000 in 2023, reflecting a 5% decline. Partnership revenue for this nine-month period also fell by 4% to $1,928,000.

Total expenses for the three months ended September 30, 2024, rose to $17,329,000, an increase of 16% from $14,943,000 in the same quarter of 2023. For the nine-month period, total expenses increased by 20% to $50,009,000, compared to $41,523,000 in the previous year. The net loss for the three months ended September 30, 2024, was $(15,426,000), compared to $(13,316,000) in 2023, while the nine-month net loss increased to $(44,869,000) from $(36,302,000), marking a 24% rise.

Research and development expenses surged by 35% to $11.6 million for the third quarter, driven by costs associated with advancing the BackBeat Cardiac Neuromodulation Therapy (AVIM therapy) and the Virtue Sirolimus AngioInfusion Balloon (Virtue SAB) into pivotal studies. Selling, general, and administrative expenses decreased by 11% to $5.7 million, attributed to reduced stock-based compensation and consulting expenses.

The company’s cash and cash equivalents as of September 30, 2024, were $25.6 million, down from $30.6 million at the end of 2023. Marketable securities also declined to $41.3 million from $56.9 million during the same period. The accumulated deficit reached $293.7 million.

Strategically, Orchestra BioMed entered into a new Loan and Security Agreement in November 2024, providing a secured term loan facility of up to $50 million, with the first tranche of $15 million drawn at closing. The company also engaged in an Open Market Sale Agreement, allowing for the sale of up to $100 million in common stock, with $15.5 million raised before the agreement's termination in August 2024.

Overall, while the company experienced growth in partnership revenues in the third quarter, it faced increased losses and expenses, reflecting ongoing investments in product development and commercialization efforts.