GenVec collaborates with Novartis on novel hearing loss treatments

US drug developer GenVec said yesterday that it is collaborating with Swiss drug major Novartis to discover and develop novel treatments for hearing loss and balance disorders, which could see it earning up to $213.6 if certain objectives are achieved, including upfront and milestone payments, in addition to royalties on future sales. The news saw GenVec's shares leap 21% to $2.11 in market trading on January 19.

Under terms of the agreement, GenVec is licensing the world-wide rights to its preclinical hearing loss and balance disorders program to Novartis. The US firm 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.

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. Adenovectors are gene transfer systems that can be used to deliver genes into cells in order to direct the production of therapeutic proteins at the site of a disease. GenVec said preclinical results suggest the technology may be able to restore hearing and balance.