Otonomy, Inc., a San Diego, CA-based clinical stage biopharmaceutical company developing novel drug therapies for disorders of the inner and middle ear, has closed a $38.5m Series B financing.
The round was co-led by Novo Ventures and RiverVest Venture Partners, with participation from Domain Associates and TPG Biotech.
This financing adds to the $10m Series A round the company has closed with Avalon Ventures in June 2010. Avalon also participated in the Series B round.
The new capital will support the company’s first two programs through pivotal clinical studies as well as the expansion of its pipeline of locally delivered drugs to treat disorders of the ear.
Otonomy’s lead product candidate, OTO-104, is a sustained release steroid currently in a Phase 1b clinical trial for patients with Meniere’s disease. The company is also developing OTO-203, a combination product for the treatment of otitis media, which is expected to enter clinical trials in 2011.
Other candidates will target acute and chronic forms of hearing loss, balance disorders, and tinnitus.
In conjunction with the financing, Peter Bisgaard, partner of Novo Ventures, Brian Dovey, partner of Domain Associates, John McKearn, Ph.D., venture partner of RiverVest Venture Partners, and Heather Preston, M.D., managing director of TPG Biotech, have joined Otonomy’s board of directors.