GAITHERSBURG, Md., Feb. 13, 2014 /PRNewswire/ -- GenVec, Inc. (NASDAQ: GNVC) today announced that the company has achieved the third milestone in its collaboration with Novartis for the development of treatments for hearing and balance disorders. In January 2014, Novartis filed an Investigational New Drug (IND) application with the Food and Drug Administration (FDA) for the clinical development of CGF166, the lead product candidate under the collaboration. The IND was deemed effective on February 7, 2014 and this triggered a $2 million milestone payment to GenVec under the terms of the collaboration.
"Hearing loss and balance disorders negatively impact the lives of millions of people worldwide, and CGF166 represents a novel approach to bringing relief to this population," said Douglas E. Brough, Ph.D., GenVec's Chief Scientific Officer. "We look forward to studying this product candidate in the clinic and finding out more about its potential."
"We are very excited that our novel regenerative approach to addressing the leading cause of hearing loss will soon be in clinical testing," said Douglas J. Swirsky, GenVec's President and CEO. "The next milestone payment available to GenVec under our Novartis collaboration will be triggered by the first patient visit in the planned Phase 1 clinical trial of CGF166."
About the Collaboration
In January 2010, GenVec entered into a worldwide licensing and collaboration agreement with Novartis to discover and develop novel treatments for hearing loss and balance disorders. Under the terms of the agreement, 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.
GenVec is a biopharmaceutical company working with leading companies and organizations such as Novartis and the U.S. Government to leverage GenVec's proprietary gene-delivery technologies to address the prevention and treatment of significant health concerns. GenVec's lead program, in the field of regenerative medicine, is licensed to Novartis for the development of novel treatments for hearing loss and balance disorders. 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 with respect to the continued development of CGF166 and receipt of milestone payments, if any, 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, such as adverse clinical results, adverse regulatory actions or the decision of Novartis for any reason not to advance GenVec's hearing loss and balance disorders program. 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.
SOURCE GenVec, Inc.