Otic Pharma Start-up of the Week (Ha’aretz online English edition)

November 18, 2014


Otic Pharma, a Peregrine Venture portfolio company, has been chosen “Startup of the Week” by Ha’aretz, a leading Israeli newspaper. 


Israeli startup inspired by soldiers cleaning their ears with bullets 
One day a doctor noticed that Israeli soldiers had a lot of ear infections - and he found an innovative solution for them at Otic Pharma. 


Some Israeli soldiers turn out to have developed a weird new hobby. 
To alleviate the boredom of guard duty, some have taken to removing 
a bullet from the rifle magazine and use the pointy end to clean their 
The habit may while away the hours but doesn't actually promote otic 
hygiene, especially if the metal scratches the skin. Dr. Eran Eilat, a 
battalion doctor who found himself treating a rash of outer ear 
infections in the Israel Defense Forces. 
As soldiers are not always in a position to lie there unmoving for long 
minutes while the liquid seeps in, rather than down their necks, after 
administering the drops, Eilat would jam wads of cotton into their 
ears. It was an imperfect solution, sometimes causing pain and not 
rarely, falling out. 
Thus Eilat came up with the breakthrough idea behind Otic Pharma: 

By definition foam expands to fill the ear canal 
cavity – and it stays put, instead of seeping out. 
With medication in foam form, you don't need to 
lie on your side to administer it, or jam in anything 
to keep the medicine from dripping out. The foam 
collapses within an hour but meanwhile the active 
ingredient adheres to the ear canal walls. 
Since the foam, which is like shaving foam in 
viscosity and density, stays in the ear canal, lower 
doses of active medicine could be used, or the 
medicine could be administered less frequently. 
FoamOtic provides significant advantages to the 
patient and caregiver from a compliance and ease 
of use perspectives, the company says, adding that 
its foam was tested in various clinical trials for 
Acute Otitis Externa and found to be safe and 
efficacious as a single daily dose treatment. 
A Phase 3 clinical trial is scheduled for 2015. Otic's 
foam contains ciprofloxacin, a safe antibiotic which 
has already won regulatory approval for that use. 
The American market for ear medication is $600 
million a year, Otic says. 
Adaptation for dogs and cats 
Dog and cat owners are painfully aware of drug 

administration problems. First you have to catch 
the animal, hold its ear firmly with your third 
hand, drip the drug into its ear despite its shrieking 
and struggling and massage it in – only to watch 
your dog shake its head vigorously until every last 
drop is on your silk shirt. Repeat twice a day for a 
Product development for dogs and cats successfully passed 
acceptability studies . "We have done tests just to see that the foam 
doesn't bother them and that the drug stays for days in the ear," says 
"We're working on a robust foam for animals that remains for a few 
days," says the development VP, and that's for the good of all. 
"Treating dogs and cats is very painful to the owner," he understates. 
"The whole idea is to give the drug once and that's it – 'one and 
Moreover, the foam would be administered once by the vet when he 
diagnoses the problem, not the owner. 
Sounds terrific. Why not develop robust foam for people? 
Because foam in their ear might affect their hearing, explains Yelin. 
He doesn’t spell it out but your pet isn't about to complain that it 
can't hear properly, while your son might. 
Developing the foam itself for dogs is a future endeavor. They have a 
huge ear infection problem. The market for ear foam for cats is much 
smaller: they seem less prone, not to mention the animal is harder to 
catch. But the company does have a concept ready to roll: for the cat, 
add treatment for ear mites to the foam. There is a huge need for 
Another future development is foam for the middle ear, a spot where 
children especially are prone to infection. 
Otic was founded in 2008 in a government incubator. Today it 
operates out of the Rehovot science park and is supported by venture 


Otic Pharma Ltd. is developing a line of products that are formulated in its novel proprietary drug delivery system: “Foam-Otic” that addresses inherent limitations of all current ear drops medications. Pleasant foam is applied to the ear via a dedicated device, remains there for a long time and slowly releases and “supplies” the active drug to the external ear. Excellent compliance, once or twice a day use, novelty, safety and efficacy contribute to an attractive product line with a potential to capture a significant market share (estimated in $1 billion worldwide). 

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