Otonomy, a late-stage biotech developing sustained-exposure treatments for ear diseases, announced terms for its IPO on Friday. The San Diego, CA-based company plans to raise $80 million by offering 5.3 million shares at a price range of $14 to $16. At the midpoint of the proposed range, Otonomy would command a fully diluted market value of $315 million.
Otonomy's lead candidate treats middle ear effusion developed during tympanostomy tube placement surgery. The company plans to submit an NDA in the 1H15. Its IPO follows Auris Medical (EARS), another ear-related biotech scheduled to begin trading next week. Otonomy is in Phase 2 trials for Ménière’s Disease and preclinical studies for tinnitus, both of which are targeted by Auris.
Otonomy, which was founded in 2008, plans to list on the NASDAQ under the symbol OTIC. J.P. Morgan and BofA Merrill Lynch are the joint bookrunners on the deal. It is expected to price during the week of August 11, 2014.
