OTIC Prices Offering At $20/Share

(RTTNews) - Otonomy Inc. (OTIC) has offered to sell 5 million shares of its common stock to the public at a price of $20 each.

The offering, which is scheduled to close on or about January 12, 2016, is expected to rake in gross proceeds of about $100 million. The company had cash of $199.2 million at September 30, 2015.

The company has granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of its common stock.

Last month, the company's OTIPRIO received FDA approval for the treatment of pediatric patients with bilateral otitis media with effusion undergoing tympanostomy tube placement. OTIPRIO is a single-dose, physician-administered antibacterial and the first product approved by the FDA for this indication. OTIPRIO is expected to be lunched in the U.S. this quarter.

The most advanced drug candidate in the pipeline is OTO-104. The U.S. phase III clinical trial of OTO-104 in Ménière's disease was initiated last November. A second phase III trial of OTO-104 is expected to be initiated in the EU in the first quarter of 2016.

OTIC closed Wednesday's trading at $21.05, down 13.73%.