GenVec Enters Collaboration on Hearing Loss Treatments With Leading Global Pharmaceutical Company
GAITHERSBURG, Md., Jan. 19 /PRNewswire-FirstCall/ --
GenVec, Inc. (NASDAQ:
GNVC) today announced that the company has entered into a
research collaboration and license agreement.
GenVec and Novartis will collaborate to
discover and develop novel treatments for hearing loss and balance
disorders. Preclinical results suggest that delivery of the atonal
gene using GenVec's innovative adenovector technology may have the
potential to restore hearing and balance function.
Under terms of the agreement, GenVec is licensing the world-wide
rights to its preclinical hearing loss and balance disorders
program to Novartis. GenVec will receive a $5 million upfront
payment and Novartis has purchased $2 million in GenVec common
stock. In addition, GenVec will receive funding from Novartis for a
research program focused on developing additional adenovectors for
hearing loss. If certain clinical, regulatory and sales milestones
are met, GenVec is eligible to receive up to $213.6 million,
including upfront and milestone payments, in addition to royalties
on future sales.
"Hearing loss is a significant and growing problem for millions
of people. Our technology has great promise and this collaboration
provides an excellent mechanism to move the development of new
treatments forward. We believe Novartis is an ideal collaborator
for GenVec. They have the experience, expertise, and resources to
develop and commercialize innovative products on a world-wide
basis," said Dr. Paul Fischer, GenVec's President and Chief
Executive Officer.
About GenVec
GenVec, Inc. is a biopharmaceutical company developing novel
therapeutic drugs and vaccines. GenVec's lead product,
TNFerade(TM), is currently in a pivotal clinical study (PACT) in
locally advanced pancreatic cancer. TNFerade has also been and is
currently being evaluated for its potential use in the treatment of
several other cancers, including esophageal cancer, rectal cancer,
and head and neck cancer. GenVec also uses its proprietary
adenovector technology to develop vaccines for infectious diseases
including influenza, HIV, malaria, foot-and-mouth disease,
respiratory syncytial virus (RSV), and HSV-2. Additional
information about GenVec is available at www.genvec.com and in the
company's various filings with the Securities and Exchange
Commission.
Statements herein relating to future financial or business
performance, conditions or strategies and other financial and
business matters, including expectations regarding future milestone
payments, royalties, the development of products and the success of
the collaboration with Novartis, are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act.
GenVec cautions that these forward-looking statements are subject
to numerous assumptions, risks and uncertainties, which change over
time. Factors that may cause actual results to differ materially
from the results discussed in the forward-looking statements or
historical experience include risks and uncertainties, including
the failure by GenVec to secure and maintain relationships with
collaborators; risks relating to the early stage of GenVec's
product candidates under development; uncertainties relating to
clinical trials; risks relating to the commercialization, if any,
of GenVec's proposed product candidates; dependence on the efforts
of third parties; dependence on intellectual property; and risks
that we may lack the financial resources and access to capital to
fund our operations. Further information on the factors and risks
that could affect GenVec's business, financial conditions and
results of operations, are contained in GenVec's filings with the
U.S. Securities and Exchange Commission (SEC), which are available
at www.sec.gov. These forward-looking statements speak only as of
the date of this press release, and GenVec assumes no duty to
update forward-looking statements.
Investor Contact: Media Contact: GenVec, Inc. Tiberend Strategic Advisors, Inc. Danielle M. DiPirro Andrew Mielach (301) 944-1877 (212) 827-0020 ddipirro@genvec.com amielach@tiberendstrategicadvisors.com
Source: GenVec, Inc.
CONTACT: Investors, Danielle M. DiPirro, GenVec, Inc.,
+1-301-944-1877,
ddipirro@genvec.com; Media, Andrew
Mielach, Tiberend Strategic Advisors, Inc.,
+1-212-827-0020, amielach@tiberendstrategicadvisors.com
Web Site: http://www.genvec.com/
Posted: January 2010
