Otonomy preps for Phase III despite Meniere's miss

Otonomy Inc. (NASDAQ:OTIC) fell $6.19 (20%) to $24.86 on Friday after its OTO-104 missed the primary endpoint in a Phase IIb study to treat unilateral Meniere's disease. Based on positive trends and secondary endpoint results, the company plans to begin the first of two Phase III trials of OTO-104 to treat Meniere's by year end.

The study's primary endpoint was a reduction in vertigo frequency during month 3 compared to a one-month baseline period. Patients receiving OTO-104 had a 61% reduction vs. 43% for placebo (p=0.067). ...