Novartis/GenVec collaboration reaches new milestone

Novartis has reached a new clinical milestone in its ongoing collaboration with GenVec on the development of new treatments for hearing loss and balance disorders.

Following the completion of certain preclinical activities relating to the project, GenVec has triggered the second milestone payment agreed as part of the research and development alliance, which has been ongoing since January 2010.

The progress of the worldwide licensing and collaboration agreement is structured using a set of clinical, regulatory and sales markers, with GenVec eligible to receive payments of up to $213.6 million if these are all met.

In August 2010, the partnership was expanded to include the manufacturing of clinical trial material for up to two lead product candidates.

Dr Paul Fischer, GenVec's president and chief executive officer, said: "Completing this milestone reflects sustained progress and we look forward to reaching additional milestones with Novartis in this very exciting programme."

Last month, Novartis announced that another collaboration in which it is participating has uncovered a potentially promising new class of malaria therapies.