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Conference call and webcast today at 4:30 p.m. EDT
SAN DIEGO, May 06, 2019 (GLOBE NEWSWIRE) -- Otonomy, Inc. (NASDAQ: OTIC), a biopharmaceutical company dedicated to the development of innovative therapeutics for neurotology, today reported financial results for the quarter ended March 31, 2019 and provided an update on its corporate activities and product pipeline. The company will host a conference call and webcast today at 4:30 p.m. EDT to discuss recent highlights and financial results, and provide an overview of the OTO-313 program.
"This quarterly update highlights the continued execution of our business strategy including the plan to report clinical results from three trials in 2020 -- the Phase 3 trial of OTIVIDEX in Ménière’s disease, the Phase 1/2 clinical trial of OTO-313 in tinnitus and Phase 1/2 trial of OTO-413 in hearing loss," said David A. Weber, Ph.D., president and CEO of Otonomy. “In addition, our partnership with Glenmark complements the existing co-promotion arrangement with Mission Pharmacal and ensures that we have broad promotional support for OTIPRIO in the peak swimmer's ear season this summer. We expect that these efforts will contribute to our already strong balance sheet that will fund the company's operations through the three clinical trial results next year and into 2021."
Product Pipeline and Corporate Update
Anticipated Upcoming Milestones
First Quarter Financial Highlights
Webcast and Conference Call
Otonomy management will host a webcast and conference call regarding this announcement at 4:30 p.m. EDT/1:30 p.m. PDT today. The live call may be accessed by dialing (877) 305-6769 for domestic callers and (678) 562-4239 for international callers with conference ID code number: 8076448. A live webcast of the call will be available online in the investor relations section of Otonomy’s website at www.otonomy.com and will be archived there for 30 days.
Non-GAAP Operating Expenses
In this press release, Otonomy’s operating expenses are provided in accordance with generally accepted accounting principles (GAAP) in the United States and also on a non-GAAP basis. Non-GAAP operating expenses exclude stock-based compensation. Non-GAAP operating expenses are provided as a complement to operating expenses provided in accordance with GAAP because management believes non-GAAP operating expenses help indicate underlying trends in the company’s business, are important in comparing current results with prior period results and provide additional information regarding the company’s financial position. Management also uses non-GAAP operating expenses to establish budgets and operational goals that are communicated internally and externally and to manage the company’s business and to evaluate its performance. The attached financial information includes a reconciliation of the GAAP operating expenses to non-GAAP operating expenses and a reconciliation of GAAP operating expense guidance to non-GAAP operating expense guidance.
Otonomy is a biopharmaceutical company dedicated to the development of innovative therapeutics for neurotology. The company pioneered the application of drug delivery technology to the ear in order to develop products that achieve sustained drug exposure from a single local administration. This approach is covered by a broad patent estate and is being utilized to develop a pipeline of products addressing important unmet medical needs including Ménière’s disease, hearing loss, and tinnitus. For additional information please visit www.otonomy.com.
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or the future financial or operating performance of Otonomy. Forward-looking statements in this press release include, but are not limited to, timing of results, patient recruitment and enrollment plans for, and design and conduct of, the Phase 3 clinical trial for OTIVIDEX; timing of results, patient recruitment and enrollment plans for, and design and conduct of, the Phase 1/2 clinical trial for OTO-313; expectations regarding IND-enabling activities to support, timing of initiation and results, patient recruitment and enrollment plans for, and design and conduct of, the Phase 1/2 clinical trial for OTO-413; the activity under, and potential benefits of, the co-promotion agreements between Otonomy and Mission and between Otonomy and Glenmark; expectations regarding the timing and nature of upcoming milestones; expectations regarding operating expenses for 2019 and 2020; expectations that current capital is sufficient to fund the company through completion of the OTIVIDEX Phase 3 trial, OTO-313 Phase 1/2 trial, and OTO 413 Phase 1/2 trial, and will support company operations into 2021; and statements by Otonomy’s president and CEO. Otonomy’s expectations regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties. Actual results may differ materially from those indicated by these forward-looking statements as a result of these risks and uncertainties, including but not limited to: Otonomy’s limited operating history and its expectation that it will incur significant losses for the foreseeable future; Otonomy’s ability to accurately forecast financial results; Otonomy’s ability to obtain additional financing; Otonomy’s dependence on the regulatory success and advancement of its product candidates; the uncertainties inherent in the clinical drug development process, including, without limitation, Otonomy’s ability to adequately demonstrate the safety and efficacy of its product candidates, the nonclinical and clinical results for its product candidates, which may not support further development, and challenges related to patient enrollment in clinical trials; Otonomy’s ability to obtain regulatory approval for its product candidates; the risks of the occurrence of any event, change or other circumstance that could give rise to the termination of the co-promotion agreement between Otonomy and Mission and/or the co-promotion agreement between Otonomy and Glenmark; the risks of the occurrence of any event, change or other circumstance that could impact Otonomy’s ability to repay or comply with the terms of the loan provided by Oxford Finance LLC; side effects or adverse events associated with Otonomy’s product candidates; Otonomy’s ability to successfully commercialize its product candidates, if approved; competition in the biopharmaceutical industry; Otonomy’s dependence on third parties to conduct nonclinical studies and clinical trials; Otonomy’s dependence on third parties for the manufacture of its product candidates; Otonomy’s dependence on a small number of suppliers for raw materials; Otonomy’s ability to protect its intellectual property related to its product candidates in the United States and throughout the world; expectations regarding potential market size, opportunity and growth; Otonomy’s ability to manage operating expenses; implementation of Otonomy’s business model and strategic plans for its business, products and technology; and other risks. Information regarding the foregoing and additional risks may be found in the section entitled "Risk Factors" in Otonomy’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (the "SEC") on May 6, 2019, and Otonomy’s future reports to be filed with the SEC. The forward-looking statements in this press release are based on information available to Otonomy as of the date hereof. Otonomy disclaims any obligation to update any forward-looking statements, except as required by law.
Robert H. Uhl
|Condensed Balance Sheet Data|
|As of March 31,||As of December 31,|
|Cash and cash equivalents||$||16,276||$||33,633|
|Long-term debt, net||14,822||14,764|
|Leases, net of current||16,359||—|
|Total stockholders' equity||69,289||79,737|
|Condensed Statements of Operations|
|(in thousands, except share and per share data)|
|Three Months Ended|
|Product sales, net||$||192||$||301|
|Costs and operating expenses:|
|Cost of product sales||213||272|
|Research and development||8,795||5,650|
|Selling, general and administrative||3,278||6,157|
|Total costs and operating expenses||12,286||12,079|
|Loss from operations||(12,094||)||(11,778||)|
|Other income, net||110||354|
|Net loss per share, basic and diluted||$||(0.39||)||$||(0.37||)|
|Weighted-average shares used to compute net loss per share,|
|basic and diluted||30,685,412||30,568,531|
|Reconciliation of GAAP to Non-GAAP Operating Expenses|
|Three Months Ended|
|GAAP operating expenses|
|Research and development||$||8,795||$||5,650|
|Selling, general and administrative||3,278||6,157|
|Total GAAP operating expenses||12,073||11,807|
|R&D stock-based compensation expense||(659||)||(637||)|
|SG&A stock-based compensation expense||(834||)||(2,072||)|
|Total non-GAAP adjustments||(1,493||)||(2,709||)|
|Non-GAAP operating expenses||$||10,580||$||9,098|
|Reconciliation of 2019 GAAP to Non-GAAP Operating Expense Guidance|
|GAAP operating expenses||$55 - $60|
|Stock-based compensation expense||$ 10|
|Non-GAAP operating expenses||$45 - $50|