The Chairman of Otonomy's Board of Directors dumped over a million shares yesterday. This is significant and possibly a bad sign because:
- There hasn't been any insider trades in years.
- The stock price has recently cratered.
If the Phase 2a FX-322 results come back showing that it treats tinnitus, especially in a significant way, I think this could spell the end for Otonomy's OTO-313 drug. I think their board of directors may be thinking this too.
It's been in the back of my mind, but I'm wondering if they're just treading water right now waiting for those results to drop. If FX-322 shows potential for treating tinnitus, I'm thinking their game plan may be to liquidate the company and sell off the various tech. In such a scenario, Frequency Therapeutics may be able to pick up the extended release tech and maybe even the OTO-413 drug (though since they're focusing on progenitor cells they might not do that).
It may be too early for this kind of speculation, as they still may still have an ace up their sleeve, but the selling of shares seems like a bad sign.