Otonomy Announces Pricing of Initial Public Offering

SAN DIEGOAug. 13, 2014 -- Otonomy, Inc. (Nasdaq:OTIC), a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapeutics for diseases and disorders of the inner and middle ear, today announced the pricing of its initial public offering of 6,250,000 shares of its common stock at a price to the public of $16.00 per share. In addition, Otonomy has granted the underwriters a 30-day option to purchase up to 937,500 additional shares of common stock at the initial public offering price, less customary underwriting discounts and commissions. All of the common stock is being offered by Otonomy. The shares are expected to begin trading on The NASDAQ Global Select Market on August 13, 2014, under the symbol "OTIC."

J.P. Morgan Securities LLC and BofA Merrill Lynch are acting as joint book-running managers for the offering, Piper Jaffray & Co. is acting as lead manager for the offering, and Sanford C. Bernstein & Co., LLC is acting as co-manager for the offering.

Registration statements relating to these securities have been filed with the Securities and Exchange Commission and became effective onAugust 12, 2014. The offering is being made only by means of a prospectus. A copy of the final prospectus relating to the offering may be obtained from J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions1155 Long Island AvenueEdgewood, NY 11717, or by telephone at (866) 803-9204; or BofA Merrill Lynch, 222 BroadwayNew York, NY 10038, Attention: Prospectus Department, or by email at:[email protected].

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

CONTACT: Media Inquiries
         Canale Communications
         Ian Stone
         Account Director
         [email protected]

         Investor Inquiries
         Westwicke Partners
         Robert H. Uhl
         Managing Director
         [email protected]