San Diego-based Otonomy has closed a $38.5 million Series B financing. Novo Ventures and RiverVest Venture Partners co-led the round with help from Domain Associates and TPG Biotech. Otonomy previously raised $10 million in June, bringing its total 2010 haul to $48.5 million.
Otonomy's lead product is OTO-104. This sustained-release steroid is being evaluated in a Phase Ib trial as a treatment for Meniere's disease, a condition that can affect hearing and balance. The developer also is working on OTO-203, a combination product for middle ear infections; clinical trials of that drug are expected to begin in 2011. This funding round will support both programs through pivotal clinical trials. Otonomy also plans to expand its pipeline of other ear disease treatments, including products for acute and chronic forms of hearing loss, balance disorders, and tinnitus.
"...[W]e believe that the development of optimized drug treatments for disorders of the ear represents a very attractive investment opportunity based on the large population of patients affected and the lack of any FDA-approved drugs for hearing or balance disorders," explains Novo Ventures partner Peter Bisgaard.
- check out Otonomy's release