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| Otonomy CEO David Weber |
Back in the days before VEGF blockers, patients with vision-stealing ophthalmic diseases had few treatment options, an unmet need that helped turn drugs like Eylea and Lucentis into blockbusters. Now, a similar storm is brewing for ailments that damage patients' hearing, according to Otonomy CEO David Weber, and the San Diego biotech has hauled in another $49 million to advance its treatments to an underserved population.
Otonomy's latest round brought in new investors including Jennison Associates, Perceptive Advisors and Federated Kaufmann Funds, alongside repeat backers like OrbiMed, Novo, TPG Biotech and Domain Associates. With the cash, Otonomy plans to fund its three-pronged clinical program, advancing its pipeline with plans to take its top prospect all the way to market.
Leading the way is OTO-201, a sustained-release formulation of the antibiotic ciprofloxacin designed to reduce postoperative complications in pediatric patients undergoing tube-placement surgery. That drug is in the midst of Phase III trials, and, if everything works out as planned, Otonomy will be making its case to the FDA in the near term.
On its heels is OTO-104, a Phase III steroid treatment for Ménière's disease, an inner ear disorder that disrupts hearing and balance. Finally, Otonomy has a preclinical tinnitus drug that will soon make its way into clinical trials thanks to the new funding, the company said.
"This financing strengthens our balance sheet as we work to achieve important milestones for each of our three product candidates," Weber said in a statement. "Furthermore, these funds will support our transition to a pre-commercial company pending positive clinical results from the ongoing OTO-201 Phase III trials."
Weber estimates the global market for Otonomy's products at north of $1 billion, and while the biotech is positioning itself to be able to go it alone on the commercial front with '201, it will keep its ears open to partnerships and deeper deals for ex-U.S. marketing, Weber told FierceBiotech earlier this year.
Otonomy's D round brings its total venture haul to $143 million, and the company's investors include Avalon Ventures, RiverVest Venture Partners and Aperture Venture Partners.
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