- Otonomy has been developing OTO-104 for treatment of Menieres disease, which leads to deafness, vertigo and ringing in the ears.
- In a mid-stage clinical trial, although OTO-104 reduced the incidence of vertigo by 61% (versus 43% for placebo) in the third month of the trial, the results were not considered statistically significant.
- OTO-104 had no effect on tinnutis (ringing in the ears).
Although the latest study results on OTO-104 are disappointing, as evidenced by the 16% decline in stock price on the news, Otonomy plans to keep going. In fact, the company has designed two parallel late-stage trials, which will start towards the end of this year. In addition, Otonomy is develping OTO-311 for treatment of tinnitus. Assuming all goes well with OTO-104, Cowen & Co. analysts have predicted that OTO-104 could become a $1 billion drug.