Otonomy shares plunged 50.1 percent at news that the company’s drug to treat Meniere’s disease failed to hit the primary endpoint in a Phase III trial.

Kindred Biosciences Inc. received the first U.S. approval for a treatment for unintended weight loss in cats.

Otonomy announced the success of its AVERTS-2 Phase III clinical trial of Otividex in patients with Meniere’s disease.

Otonomy is cutting jobs and slashing operations in order to stay in business.

Otonomy Inc. suspended developing its drug for Meniere’s disease, a chronic disorder of the inner ear, after it failed a late-stage trial.

Doctors have struggled for years to deliver medication effectively to the inner ear, but two companies are vying to be first to introduce new treatments which, if successful, could together chalk up some $800 million in peak sales.