Otonomy Inc. (OTIC) Stock sunk on Tuesday, April 7, 2021. The stock lost 4.67% in the morning session and it lost a further 7.35% in the extended trading session.
Let’s try to find out the reason behind its negativity
Setting price for public offer
On April 07, 2021, Otonomy, Inc announced the pricing of 6,288,890 shares of its common stock. OTIC stock wants to sell its common stock to the public at $2.25 per share. Also, OTIC offering warrants at a purchase price of $2.249 per each pre-funded warrant.
The $30.1 million gross proceeds from this offering are expected to be used for general purpose and corporate expenditures. April 12, 2021, is the last date for this offer.
Participation in the upcoming virtual conference.
OTIC stock confirmed on April 06, 2021, that it will participate in the 20th Annual Needham Virtual Healthcare Conference taking place on Tuesday, April 13, 2021, at 4:30 p.m. ET (1:30 p.m. PT).
The president and CEO of Otonomy David A. Weber, Ph.D., will present a company overview at the conference.
Clinical results presentation.
On April 05, 2021, Otonomy, Inc. said that it will present the previously disclosed clinical results from the successful OTO-313 Phase 1/2 trial at the upcoming American Neurotology Society’s 56th Annual Spring Meeting, which is taking place virtually on April 7-11, 2021.
Kenneth Maxwell, M.D., a Neurotologist at Piedmont Ear Nose & Throat Associates in Winston-Salem, North Carolina, will do the oral presentation on April 10, 2021, at 5:07 p.m. EDT.
Commencing phase 2 trial of OTO-313.
On March 25, 2021, Otonomy, Inc. said that it’s going to start a phase 2 trial of OTO-313 in patients with unilateral tinnitus. Phase 2 study will be carried out on approximately 140 patients with at least moderate severity of tinnitus. The trial results are expected in mid-2022
Recent financial results
On February 11, 2021, Otonomy reported financial results for the quarter and year ended December 31, 2020.
Fourth-quarter financial highlights
- OTIC GAAP operating expenses were $10.1 million for the fourth quarter of 2020, compared to $10.7 million for the fourth quarter of 2019.
- OTIC had Non-GAAP operating expenses of $8.5 million for the fourth quarter of 2020, compared to $10.2 million for the fourth quarter of 2019
- For the reported quarter, selling, general and administrative expenses were $3.7 million, compared to $3.6 million for the fourth quarter of 2019
- R&Dexpenses for the fourth quarter of 2020 was $6.4 million, compared to $7.0 million for the fourth quarter of 2019.
The full Year 2020 Financial Highlights
- For the full year 2020, GAAP operating expenses were $42.6 million compared to $44.5 million for 2019
- Non-GAAP operating expenses were $36.5 million for the full year 2020 compared to $39.6 million for the prior year.
- GAAP R&D expenses were $28.0 million for the full year 2020compared to $32.8 million for 2019.
- SG&A expenses were $14.6 million for 2020 compared to $11.7 million for 2019.
- As of December 31, 2020, Cash, cash equivalents, and short-term investments totalled $86.3 million compared to $60.7 million as of December 31, 2019.
The recent IPO stock offer did not please the investors and recent trial failure also has an impact on its stock value. The upcoming result presentation can revive its stock position.