RiverVest Venture Partners’ Otonomy Completes $100 Million Initial Public Offering

In Press Release by Cecile

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August 13th, 2014

Otonomy, a RiverVest Fund II portfolio company that develops drug therapies for the inner and middle ear, announced today its $100 million initial public offering.

The San Diego-based biopharma company priced 6.25 million shares of common stock at a price of $16.00 per share, which starts trading today on the NASDAQ under the symbol OTIC.

Otonomy also granted the underwriters a 30-day option to purchase up to an additional 937,500 shares of common stock which could increase the gross offering to a maximum of $115 million if exercised. Otonomy is expected to have an opening market capitalization of approximately $350 million.

“Otonomy is on the verge of revolutionizing the way doctors treat disorders of the ear,” said John McKearn, Ph.D., RiverVest managing director and Otonomy board member“This IPO is a significant milestone moving Otonomy forward to help the millions of Americans who suffer from debilitating hearing and balance disorders.”

This IPO represents the latest in a series of successful transactions for RiverVest Venture Fund II that total, including upfront and milestone payments, over $3 billion in transactional value to the investors in these companies.