Otonomy Announces Full Exercise of Underwriters' Option to Purchase Additional Shares

SAN DIEGO, Sept. 3, 2014 (GLOBE NEWSWIRE) -- Otonomy, Inc. (Nasdaq:OTIC), a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapeutics for diseases and disorders of the inner and middle ear, today announced that the underwriters of its initial public offering of 6,250,000 shares of its common stock exercised in full their option to purchase an additional 937,500 shares of common stock at the initial public offering price of $16.00 per share, less customary underwriting discounts and commissions. The offering of the additional 937,500 shares closed on August 29, 2014. The aggregate net proceeds to Otonomy from the sale of a total of 7,187,500 shares, after deducting underwriting discounts and commissions and other estimated offering expenses, are approximately $104 million. Otonomy's shares began trading on The NASDAQ Global Select Market on August 13, 2014, under the symbol "OTIC."

J.P. Morgan Securities LLC and BofA Merrill Lynch acted as joint book-running managers for the offering, Piper Jaffray & Co. acted as lead manager for the offering, and Sanford C. Bernstein & Co., LLC acted as co-manager for the offering.

Registration statements relating to these securities have been filed with the Securities and Exchange Commission and became effective on August 12, 2014. The offering was made only by means of a prospectus. A copy of the final prospectus relating to the offering may be obtained from J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (866) 803-9204; or BofA Merrill Lynch, 222 Broadway, New York, NY 10038, Attention: Prospectus Department, or by email at: dg.prospectus_requests@baml.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Otonomy

Otonomy is a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapeutics for diseases and disorders of the ear. Otonomy's proprietary technology provides sustained exposure of drugs to the middle and inner ear following a single intratympanic (IT) injection. Otonomy has three product candidates in development. AuriPro™ is an antibiotic that has completed Phase 3 clinical trials in pediatric patients with middle ear effusion at the time of tympanostomy tube placement surgery. OTO-104 is a steroid that is in the first of two pivotal clinical studies for the treatment of patients with Ménière's disease. OTO-311 is an NMDA receptor antagonist in development as a treatment for tinnitus.

CONTACT: Media Inquiries Canale Communications Heidi Chokeir, Ph.D. Vice President 619.849.5377 heidi@canalecomm.com Investor Inquiries Westwicke Partners Robert H. Uhl Managing Director 858.356.5932 robert.uhl@westwicke.comSource:Otonomy, Inc.