The volume (amount of stock trading hands) has been low or average recently. The drops are most likely people getting scared and exiting before the results are in. The Short % of Float is pretty low (0.83%), you'd think if someone knew something they'd be shorting the stock.
The market is extra sensitive to bad news right now. Even good news that is less good than expected is received as bad news.
It just means there aren't a lot of people shorting the stock. You can read more about Short % of Float here.
It is definitely possible and wouldn't be the first time, nor the last. This stock price is not correlated to the general market at all really. Seems like all these biotech share prices only move based off if their products are going to be sold or not.
That was the end of the COVID-19 bull market. Nothing specifically to do with any single stock, which is good news for the company! Bad news for the economy haha.
The S&P 500 was at an ath in December 2021 but all these type of growth stocks did peak around January/February actually. I keep forgetting that. It was all just a speculative bubble fueled by excessive money printing and hype.
The drop was due to a Phase 3 failure in their Otividex drug. This drug was the reason their company was founded many years ago. It was supposed to help Meniere's disease, which their founder, Jay Lichter, suffers from (aside: he also has tinnitus).
Here's my take, I'm sure others can correct this:
OTO-313 recruited patients with tinnitus of cochlear origin.
It's possible. In the pilot study it did this for one person. To quote from the case study:
In addition, in their case studies for Phase I/II in their corporate presentation someone went from a TFI of ~80 to ~17 ("severe to mild"). When the data comes in for Phase 2 we'll see if there's anyone that drops to the silence zone. It's not out of the realm of possibility, but based on everything we know now it most likely just turns down the volume.
Honestly, barely noticeable is all what most with tinnitus need. When people say barely noticeable, it is when they are in a quite room and need to "listen" for it. Lmao if that were most of us with tinnitus, this forum would not even exist.
In Phase 2 trials they are testing on people up to a year from tinnitus onset. Presumably if these results are good they would then (as it would be in their best interests financially of course) to test their drug on cases of over a year in? Remember there are millions of people with tinnitus who are long past a year. I think Otonomy will be well aware of this and will be seeing potential dollar signs.
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