Otonomy, Inc., a San Diego, CA-based clinical stage biopharmaceutical company developing innovative drug therapies for disorders of the inner and middle ear, has closed a $10m Series A financing with Avalon Ventures.
The company’s core technology is a sustained release formulation developed for optimal delivery of drugs from a single intratympanic (IT) injection. Otonomy has already advanced into active developments two products. The first, OTO-104, is a sustained release formulation of the steroid dexamethasone. A clinical trial has been initiated in Meniere’s disease patients, and future studies are being planned for acute hearing loss. The second product, OTO-203, is a sustained release antibiotic being developed for the treatment of otitis media.
The capital infusion will support the ongoing clinical trial for OTO-104 in Meniere’s disease. Preclinical studies have demonstrated that this product can effectively deliver a prolonged and dose proportional exposure of dexamethasone to the inner ear, and is well tolerated in a broad set of safety evaluations.
In addition, the funds will be used to initiate IND-enabling studies for OTO-203, and continue early-stage development of a third program.
According to Jay Lichter, Ph.D., CEO and co-founder of Otonomy, and managing director of Avalon Ventures, this financing will also provide a strong foundation to raise additional capital with investors who share the company’s interest in the market for innovative drugs for the treatment of hearing and balance disorders.