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Genvec Signs Development Deal With Novartis

From Associated Press (January 19, 2010)

GAITHERSBURG, Md.--Biotechnology company GenVec Inc. said Tuesday it entered a development deal with Novartis for potential hearing-loss treatments.

GenVec said it is licensing worldwide rights to its preclinical hearing loss and balance disorders program to Novartis, based in Switzerland, for $5 million upfront and a $2 million stock purchase. The program is still in the laboratory stage of development.

GenVec will also receive funding from Novartis for a research program focused on hearing loss and GenVec is eligible for up to $213.6 million in other payments, based on research and sales milestones.

Shares of GenVec jumped 37 cents, or 21 percent, to $2.11 Tuesday.

American Depository Shares of Novartis rose 75 cents to $53.63.

Posted: January 2010