Orchestra BioMed initiated with Buy, $15 target at B. Riley

B. Riley last night initiated coverage of Orchestra BioMed with a Buy rating and $15 price target. Orchestra develops medical devices and positions them for commercialization, which will ultimately be driven by leading medical device companies, the analyst tells investors in a research note. The firm believes the company will likely benefit from royalty-based arrangements with larger medical device strategics that are looking to offload some regulatory risk but still participate in new product development. Riley thinks the appetite for larger medical device strategics to partner earlier in the development stage of promising new technologies is increasing and makes Orchestra’s capabilities a “major value proposition.”