Shares Of Otonomy Plunge Following Public Offering Of Stock

Shares of Otonomy Inc OTIC, a clinical-stage bio-pharmaceutical company, plunged more than 5 percent in Tuesday's after-hours session after the company announced a public offering of approximately $100 million of its common stock.

Otonomy stated that all shares of the common stock will be offered by the company and the total number of shares and price has yet to be determined.

In a supporting SEC filing, Otonomy noted that the proceeds from the offering will be used to fund expenses in connection with commercializing and conducting clinical trials for OTIPRIO, clinical development of its OTO-0104, completion of a Phase 1 clinical safety trial for OTO-311, and, based on the results, initiation and completion of a Phase 2 clinical trial in tinnitus patients, among other corporate activities.

Shares had closed down 6.2 percent on Tuesday and were still down about 5 percent at $24.40 in the pre-market session.