Otonomy Inc (NASDAQ: OTIC) is having an incredibly rough time in the market this morning, and for good reason. The company announced that it would cease the development of a key clinical candidate due to a failed late-stage clinical trial. Of course, this led to concerns among investors, sending the stock downward and prompting our partners at Trade Ideas to alert us to the movement. At the moment (8:46), OTIC is trading at $3.90 per share after a loss of $16.90 per share (81.25%) thus far today.
OTIC Falls On Failed Clinical Trial
As mentioned above, Otonomy isn’t having the best day in the market today after announcing that it would cease a key clinical program. The company was working on a treatment for Meniere’s disease. This is a chronic, progressive disorder of the inner ear. However, the treatment failed in a late-stage clinical trial.
The treatment that OTIC was working on is known as Otividex, and it was designed to be injected into the ear. However, the treatment missed the primary goal of significantly reducing the number and severity of vertigo episodes over a 3 month period when compared to a placebo. Unfortunately, the treatment also missed secondary endpoints. As a result, OTIC decided that it would suspend the development of Otividex, including its ongoing European trial for Meniere’s disease.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on OTIC. In particular, we’re interested in learning about the company’s plans following the failure of Otividex. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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