A California biotech focused on developing treatments for neurological conditions of the ear appears to be thinking about closing up shop.
San Diego-based Otonomy said Thursday it would “explore strategic options,” code for selling all its assets and possibly itself, after one of its ear compounds did not improve patients’ hearing loss in a clinical analysis. The decision comes two months after a separate program failed a Phase II test, which slashed its stock price $OTIC more than 70% at the time.
Thursday, with Otonomy shares already sitting at $0.26 pre-open, investors ran for the hills and sent the stock down another 37% in pre-market trading.
In a prepared statement, CEO David Weber noted the “challenging financing environment” as part of what led to the decision.
“We intend to explore strategic options to advance and…
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