ST. LOUIS and SAN DIEGO (Aug. 13, 2014) – Otonomy, Inc., a RiverVest Fund II portfolio company that develops drug therapies for the inner and middle ear, announced today its $100 million initial public offering.
The San Diego-based biopharma company priced 6.25 million shares of common stock at a price of $16.00 per share, which starts trading today on the NASDAQ under the symbol OTIC.
Otonomy also granted the underwriters a 30-day option to purchase up to an additional 937,500 shares of common stock which could increase the gross offering to a maximum of $115 million if exercised. Otonomy is expected to have an opening market capitalization of approximately $350 million.
“Otonomy is on the verge of revolutionizing the way doctors treat disorders of the ear,” said John McKearn, Ph.D., RiverVest managing director and Otonomy board member. “This IPO is a significant milestone moving Otonomy forward to help the millions of Americans who suffer from debilitating hearing and balance disorders.”
This IPO represents the latest in a series of successful transactions for RiverVest Venture Fund II that total, including upfront and milestone payments, over $3 billion in transactional value to the investors in these companies.
Otonomy is developing novel drug therapies for disorders of the inner and middle ear, including: AuriPro, a sustained-release formulation of the antibiotic ciprofloxacin designed to reduce postoperative complications in pediatric patients undergoing tube-placement surgery; OTO-104, a steroid treatment for a rare inner ear disorder called Ménière’s disease that disrupts hearing and balance; and, OTO-311, for treating tinnitus, which is slated to enter the clinic next year.