OTIC - Otonomy plans to liquidate lays off all employees; stock drops 20%

• Otonomy ( NASDAQ: OTIC ) stock dropped 20.2% on Tuesday after the biopharmaceutical company said it plans to liquidate and has let go of all its employees.
• The decision was made after a strategic review, which it announced during its Q3 earnings report .
• Otonomy ( OTIC ) is currently in discussions for the sale of its pipeline assets. Proceeds from any such sale would be distributed to shareholders.
• The workforce reduction, effective as of December 15, also includes termination of employment of all officers.
• CEO David Weber continues to serve on Otonomy's ( OTIC ) board, while Paul Cayer continues to serve on a consulting basis as chief financial and business officer, and was named president.
• Otonomy ( OTIC ) expects to incur total charges of ~$5M for severance and other related costs in Q4.
• Shares of the firm crashed after the mid-stage trial for its tinnitus candidate failed and it warned about its uncertain cash runway, leading to a downgrade by H.C. Wainwright .

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