Otonomy : January Corporate Presentation

Targeted Medicines for the Ear

Corporate Presentation

January 6, 2022

Forward-Looking Statements

Safe Harbor Statement

These slides and the accompanying oral presentation (the "Presentation") contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or future financial or operating performance of Otonomy, Inc. ("Otonomy"). Forward-looking statements in this Presentation include, but are not limited to, statements relating to design, patient recruitment, enrollment, compliance and conduct for, and timing of results for and initiation of, ongoing and future clinical trials; Otonomy's development plans and timelines for its product candidates and programs; the potential benefits and advantages of Otonomy's product candidates and programs; the potential benefits and opportunities of, and activities under, the collaboration agreement between Otonomy and AGTC, including but not limited to Otonomy's IND-enabling activities and plans to support an IND filing, expectations regarding market size and the number of patients who suffer from the diseases and disorders we are targeting; opportunity of Otonomy's product candidates and programs; expectations regarding Otonomy's ability to advance its pipeline; Otonomy's anticipated upcoming milestones; and expectations regarding operating expenses for 2022 and cash runway. Otonomy's expectations regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties. Actual results may differ materially from those indicated by these forward-looking statements as a result of these risks and uncertainties, including but not limited to: delays and disruption resulting from the COVID-19 pandemic and governmental responses to the pandemic, including current and future impacts to Otonomy's operations, the initiation and progression of, and enrollment in, its planned and current clinical trials, and patient conduct and compliance; Otonomy's ability to accurately forecast financial results; Otonomy's expectation that it will incur significant losses for the foreseeable future; Otonomy's ability to obtain additional financing; Otonomy's dependence on the regulatory success and advancement of its product candidates; the uncertainties inherent in the drug development process, including, without limitation, Otonomy's ability to adequately demonstrate the safety and efficacy of its product candidates, the nonclinical and clinical results for its product candidates, which may not support further development, and challenges related to patient enrollment, conduct and compliance in clinical trials; the integrity of patient-reported outcomes in its current and future clinical trials; the risks of the occurrence of any event, change or other circumstances that could impact the performance under or give rise to the termination of any collaboration or license agreements, or that could impact Otonomy's ability to repay or comply with the terms of the loan provided by Oxford Finance LLC; side effects or adverse events associated with Otonomy's product candidates; Otonomy's ability to obtain regulatory approval and successfully commercialize its product candidates, if approved; competition in the biopharmaceutical industry; Otonomy's dependence on third parties to conduct nonclinical studies and clinical trials, to supply raw materials, and for the manufacture of its product candidates; Otonomy's ability to protect its intellectual property related to its product candidates in the United States and throughout the world; expectations regarding potential therapy benefits, market size, opportunity, and growth; Otonomy's ability to manage operating expenses; implementation of Otonomy's business model and strategic plans for its business, products and technology; general economic and market conditions; and other risks. Information regarding the foregoing and additional risks may be found in the section entitled "Risk Factors" in Otonomy's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (the "SEC") on November 10, 2021, and Otonomy's future reports to be filed with the SEC. This Presentation is dated as of January 6, 2022 and based on information available to Otonomy as of that date, and Otonomy undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. This Presentation also contains estimates and other data based on publications and research, surveys and studies conducted by third parties, some of which were commissioned by Otonomy. These data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Otonomy has not independently verified the data generated by third parties and, accordingly, cannot guarantee their accuracy or completeness. In addition, projections, assumptions and estimates of its future performance and the future performance of the markets in which it operates are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, which could cause results to differ materially from those expressed in such projections, assumptions and estimates. This Presentation includes products that are under clinical investigation and which have not yet been approved for marketing by the U.S. Food and Drug Administration. They are currently limited by federal law to investigational use, and no representation is made as to their safety or effectiveness for the purposes for which they are being investigated.

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Otonomy is the Leader in Otic Drug Delivery

• ENT's have been safely using intratympanic (IT) injections clinically for decades
• We pioneered technology to provide sustained drug exposure from a single IT injection

o Weeks of drug exposure

o High drug levels throughout the inner ear

o Single IT injection per course of treatment

• Significant competitive advantage
• Leveraging technology across product pipeline and expertise for gene therapy program

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Broad Pipeline Focused on Hearing Loss and Tinnitus

Program

OTO-313

(gacyclidine)

OTO-413

(BDNF)

OTO-825

(GJB2 gene Tx)

OTO-510

OTO-6XX

Target Indication

Tinnitus

Hearing Loss

Congenital

Hearing Loss

Cisplatin-induced

Hearing Loss

Severe Hearing Loss

Status / Expected Timing of Milestone

Positive Phase 1/2 trial results;

Phase 2 trial ongoing with results mid-2022;

initiating safety evaluation of higher & bilateral dosing

Positive Phase 1/2 trial results;

Phase 2a cohort fully enrolled, results early 2Q22;

ongoing safety evaluation of higher dosing

Preclinical POC demonstrated;

Pre-IND meeting completed; IND filing in 1H23

Novel otoprotectant identified; preclinical development ongoing

Licensed novel compound;

preclinical development ongoing

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Persistent Tinnitus Affects Millions

Tinnitus is perception of hearing noise when there is no sound

~ 10% OF		Can severely impact
	ABILITY TO SLEEP
U.S. ADULTS
	OR RELAX,
experience tinnitus1
		leads to anxiety and depression

	~ 8M report	NO FDA-APPROVED
	MODERATE
	DRUG TREATMENTS
#1 service-related disability in	TO SEVERE
or standard of care for this condition
U.S. MILITARY2	bothersome level3

1Bhatt et al., JAMA Otolaryngol Head Neck Surg (2016); 2United States Department of Defense; 3ClearView Healthcare Partners analysis (2018)

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