Orchestra BioMed drops after $40 mln equity raise

** Shares of Orchestra BioMed Holdings OBIO.O down 11.8% premarket to $2.70 after follow-on prices

** New Hope, Pennsylvania-based firm sells 14.55 mln shares, including ~5.1 mln pre-funded warrants, for $40 mln gross proceeds

** Offering price of $2.75 represents 10.1% discount to stock's last close

** Co plans to use net proceeds to fund its atrioventricular interval modulation (AVIM) therapy for treatment of hypertension and its Virtue Sirolimus AngioInfusion Balloon (SAB) for treatment of atherosclerotic artery disease

** Piper Sandler and TD Cowen are joint bookrunners for offering

** After the bell Thurs, co said secured $70 mln of strategic investments from Ligand Pharmaceuticals LGND.O and Medtronic MDT.N

** While MDT is OBIO's existing partner for AVIM, the cos amended their collaboration agreement to include potential future development of a leadless pacemaker

** OBIO has ~38.6 mln shares outstanding as of Jul 30, per the prospectus, giving it roughly $118 mln market cap through Thurs

** Shares of OBIO fell for third straight day on Thurs, closing down 1.9%, extending YTD loss to 23.5%

** All 7 analysts covering OBIO are bullish and median PT is $12, LSEG data reflects