Otonomy brings out the ax after a catastrophic PhIII failure
A few days after Otonomy watched its share price $OTIC crater after its lead drug for Ménière’s disease failed a slate of pivotal endpoints in Phase III, the biotech is restructuring and hunkering down.
The San Diego-based company said today that it is laying off a third of its staff not engaged in a commercialization effort in the wake of the clinical disaster, which came after researchers tried to push through to an approval after the same therapy had failed in a Phase IIb trial. The p-values in the trial were terrible, running from 0.89 to 0.99, with high placebo responses — though the researchers had also recorded a relatively high placebo response in the failed Phase IIb trial.
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