Otonomy Adopts Dissolution & Liquidation Plans, Implements Workforce Reduction
Otonomy Inc's (NASDAQ: OTIC) board of directors has approved and adopted a Plan of Liquidation and Dissolution that would include the distribution of remaining cash to stockholders following an orderly wind-down of the company's operations, including the proceeds from the sale of any pipeline assets.
As previously reported, Otonomy initiated an evaluation of strategic options. The company is currently discussing the potential sale of its pipeline assets.
Related: At Higher Doses, Otonomy's OTO-413 Shows No Clinical Benefit In Hearing Loss.
To reduce costs and in connection with the planned dissolution, Otonomy has reduced its workforce, including the termination of all employees, effective as of December 15, 2022, including the termination of employment of all officers.
David Weber continues to serve on the Otonomy board of directors. Paul Cayer continued to serve on a consulting basis as a chief financial and business officer and was appointed president.
Otonomy estimates to incur aggregate charges of approximately $5.0 million for severance and other employee termination-related costs in Q4 2022.
The company intends to call a special meeting of its stockholders in the first quarter of 2023 to seek approval of the Plan of Dissolution.
Price Action: OTIC shares are down 4.97% at $0.11 on the last check Tuesday.
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