OTIC - Otonomy crashes 73% as mid-stage trial for tinnitus candidate fails

• The shares of neurology focused Otonomy ( NASDAQ: OTIC ) plunged ~73% in the pre-market Monday after the company said its Phase 2 trial for OTO-313 did not demonstrate a clinically meaningful benefit for OTO-313 compared to placebo in hearing disorder tinnitus.
• "These results were unexpected with a much higher placebo response than observed in the prior Phase 1/2 study,” Chief Executive David A. Weber noted, adding that the company would discontinue further development of OTO-313 and take other steps to extend cash runway.
• This is a developing story. Check back for more updates.

For further details see: