OTIC - Otonomy cut to Neutral at H.C. Wainwright after setback for tinnitus candidate

• H.C. Wainwright has downgraded the neurotology-focused Otonomy, Inc. ( NASDAQ: OTIC ) to Neutral from Buy on Tuesday after the company announced that its Phase 2 trial for OTO-313 for hearing disorder tinnitus did not meet the key goals.
• Despite his optimism over the company’s remaining neurotology candidates, the analyst Oren Livnat notes that OTO-313, which faced the axe after the setback, is Otonomy’s ( OTIC ) second asset that failed to transform early data to later-stage success.
• Therefore, “we believe investors will remain in “show me” mode for” OTO-413, Livnat argued referring to a candidate designed to treat hearing loss.  That and an uncertain cash runway prompts the form to downgrade the stock and remove the per share target.
• At the end of 2Q 2022, Otonomy ( OTIC ) reported $53.1M in cash and cash equivalents, indicating ~31% drop from 2021 year-end.

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