Israel-based Otic Pharma Establishes U.S. Footprint in California

Israel-based Otic Establishes U.S. Footprint in California
September 3, 2015
By Alex Keown, BioSpace.com Breaking News Staff

IRVINE, Calif. – Israel-based OticPharma, Ltd., a privately held therapeutics company, has established a U.S. headquarters as part of its plan to become a leading ear, nose and throat therapeutics manufacturer, the company announced this morning.

“Establishing our U.S. headquarters is the first step in our strategic plan to build a leading ENT company,” Gregory J. Flesher, chief executive officer for OticPharma, said in a statement. “We will now focus on the expansion of the U.S. management team as well as the acquisition of additional products that complement our FoamOtic program and address unmet need in both children and adults.”

Although the company announced its new footprint in the United States, Otic did not specify how many employees would be manning its American offices, or how large the Irvine, Calif. facility will be. The company acquired space in an office complex on MacArthur Boulevard.

OticPharma, established in 2008, is focused on acquiring and developing innovative therapies for ear, nose, and throat disorders. OticPharma plans to complete the move by end of September and will have office locations in both U.S. and Israel, the company said.

Otic’s lead product, FoamOtic External, is an investigational foam-based, extended-release formulation of ciprofloxacin antibiotic. The foam is designed to expand inside the ear, offering a complete coverage of the infected area, without dripping out, like some drops can, the company said. The medication will be a once-daily treatment for acute otitis externa (AOE), better known as swimmer’s ear, in minor and adult patients. The company recently completed a successful Phase II clinical trial and is planning a Phase III program. In January, the company announced the steroid-free product proved the once-per-day dose of FoamOtic had “a similar clinical cure rate as twice-daily dosing of Ciprodex ear drops.” Ciprodex is made by Alcon Laboratories, Inc. , a division of Novartis AG .

Swimmer’s ear is caused by water becoming trapped in the ear canal, which allows bacteria that normally inhabit the skin and ear canal to multiply and to infect the ear.

There are approximately 2.5 million diagnoses of swimmer’s ear annually. Revenues from prescription treatments yield just under $500 million annually, Otic said.

In July Otic tapped Gregory Flesher, the former chief business officer for Avanir Pharmaceuticals Inc. , as the company’s new chief executive officer. During his tenure at Avanir, Flesher was responsible for leading the company's corporate strategy, business development, investor relations and corporate operations functions. Before Avanir, Flesher held positions at InterMune, Inc. , Amgen and Eli Lilly and Company .

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