Click here to close now.


News Feed Item

GenVec Reports Fourth Quarter and 2013 Year-End Financial Results

GAITHERSBURG, Md., March 28, 2014 /PRNewswire/ -- GenVec, Inc. (NASDAQ: GNVC) today reported financial results for the fourth quarter and year ended December 31, 2013. For the year ended December 31, 2013, the company reported a net loss of $10.0 million, or $0.77 per share, compared with a net loss of $14.1 million, or $1.09 per share, for the year ended December 31, 2012. GenVec ended the year with $6.1 million in cash, cash equivalents, and short-term investments. 

"Over the past six months we have made significant progress in our strategic repositioning of the company," commented Douglas J. Swirsky, GenVec's President and CEO. "We have aligned our expenditures with our capital resources and refocused on near-term opportunities to monetize our technologies. As a result, we have set the stage for the company to further pursue additional corporate collaborations to develop our core gene-delivery technology. In the near-term, we look forward to the initiation of a Phase 1/2 proof-of-concept trial of CGF166 in patients with severe hearing loss by our collaboration partner, Novartis."

Recent Corporate Highlights

  • On December 4, 2013, the National Institutes of Health's (NIH) Recombinant DNA Advisory Committee (RAC) unanimously approved the protocol for initiation of a Phase 1/2 study of CGF166. The protocol, "A Three-part, Multicenter, Open Label, Single Dose Study to Assess the Safety, Tolerability, and Efficacy of Intralabyrinthine (IL) CGF166 in Patients with Severe Hearing Loss," was the subject of an in-depth review and public discussion at the RAC meeting. A replay webcast of the meeting is available on the NIH website and accessible at
  • 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 between Novartis and GenVec.  The IND was deemed effective on February 7, 2014 which triggered a $2 million milestone payment to GenVec under the terms of the collaboration.
  • In January 2014, GenVec relocated from our former 42,900 square-foot facility to 6,500 square feet of office and laboratory space, which will significantly reduce operating costs.

Enhanced Cash Position

  • In February 2014, we entered into an Equity Distribution Agreement (the Agreement) with Roth Capital Partners, LLC (Roth), pursuant to which we may sell from time to time up to $10,000,000 of shares of our common stock, par value $0.001 per share, through Roth. To date, we have sold 721,677 shares for gross proceeds of $2.6 million under the Agreement.  
  • In March 2014, we sold $9 million of shares of our common stock to selected institutional investors in a registered direct offering at a price of $3.15 per share. In the offering, we issued 2,870,000 shares of our common stock. At the time of this offering, we suspended the Agreement we entered into in February 2014 with Roth.
  • As of March 24, 2014, the company had $15.5 million in cash, cash equivalents, and investments. This amount does not include the $2 million milestone payable from Novartis related to the effective IND for CGF166.

Corporate Restructuring

  • In September 2013, following an extensive review of the company's options and prospects, the board of directors approved a new operating strategy focused on maximizing the value of GenVec's technology and assets, including its collaboration with Novartis to develop novel treatments for hearing loss and balance disorders.
  • Douglas J. Swirsky was named President and CEO and appointed to the board of directors following the departure of Cynthia Collins.
  • Stefan D. Loren, Ph.D. was appointed to the board of directors, bringing significant strategic and capital markets experience to the company.

2013 Financial Results

For 2013, revenue decreased 61% to $3.7 million from $9.4 million in 2012. The decrease in 2013 is primarily a result of decreased revenue of $3.5 million, $1.7 million, and $1.3 million generated by our hearing loss and balance disorders program, foot-and-mouth disease (FMD) program, and other grant programs, respectively, versus the prior year. These revenue decreases were partially offset by a $1.2 million increase in revenue associated with our malaria program with the U.S. Naval Medical Research Center (NMRC) in 2013 as compared to 2012. The decrease in revenue associated with our hearing program was a result of a reduced work scope as we near completion of our development work under the two Novartis agreements. The decrease in revenue associated with our FMD program mostly resulted from the successful completion of field safety studies in 2012. The decrease in revenue associated with our other grant programs was principally attributable to our reductions in work force during 2013. The increase in revenue associated with our malaria program with the NMRC resulted from the work performed under our September 2012 agreement.

Operating expenses for 2013 decreased 40% to $14.0 million from $23.5 million in 2012. Research and development expenses decreased 62% to $5.5 million in 2013 from $14.3 million in 2012. In 2013 we experienced lower research and development costs than in the prior year due primarily to decreased personnel costs associated with our reductions in work force including reduced  manufacturing costs in the FMD and hearing programs, internal costs associated with HSV and RSV internal research and development, reduced material costs for our funded and internal research programs, reduced equipment purchases under our hearing and FMD programs, lower repair and maintenance costs for our equipment, and decreased allocation of facility costs to research and development in 2013 as compared to 2012. 

General and administrative expenses decreased 7% to $8.5 million in 2013 from $9.1 million in 2012. General and administrative expenses were lower in 2013 primarily due to lower personnel and recruiting costs.  In 2012 we incurred recruiting costs associated with our chief executive officer search, for which we incurred no such costs in 2013.  The reduced costs were partially offset by increased allocation of facility costs to general and administrative in 2013 as compared to 2012.

Fourth Quarter 2013 Results

For the fourth quarter ended December 31, 2013, GenVec reported a net loss of $0.9 million, or $0.07 per share, compared with a net loss of $3.2 million, or $0.24 per share, for the comparable prior year period. The company reported revenues of $0.1 million in the fourth quarter of 2013 compared to $1.5 million for the same period in 2012.  This decrease was primarily a result of reduced revenue related to our hearing loss and balance disorders program, $0.6 million, FMD program, $0.5 million, and our grant work, $0.2 million. Reduced revenue in each case is attributable to reduced work scope in the 2013 period as compared to the same period in 2012 as well as our reduced work force in 2013. Research and development expenses decreased 95% in 2013 from $3.1 million in the fourth quarter of 2012 to $0.1 million in the fourth quarter of 2013 resulting mainly from reduced personnel, manufacturing, and material costs. General and administrative expenses in the fourth quarter of 2013 decreased 29% to $1.1 million from $1.6 million in the comparable period in 2012 primarily a result of decreased personnel, professional costs, and the gain on sale of long-lived assets.

2014 Guidance

For 2014, we anticipate cash burn between $5.0 million and $7.0 million. We believe our existing resources, combined with anticipated near-term milestones, are sufficient to fund the company's operations into the foreseeable future.

Conference Call Information

GenVec will hold a conference call today at 10:00 a.m. EDT to discuss the company's financial results and 2014 business outlook. To listen to the live conference call, please dial 877-359-9508 (U.S. or Canada) or 224-357-2393 (international) and use the following Conference ID: 4842446. An audio replay of the conference call will be available starting at 1:00 p.m. EDT on March 28, 2014 through April 4, 2014. To listen to the audio replay, dial 855-859-2056 or 404-537-3406 (international) and use access code 4842446.

A live webcast of the conference call will be available on the company's website and will be archived for 30 days. To access the webcast or the replay, go to, and click on "Investors and Media."

About GenVec

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. The company also licenses its proprietary technology platform, including vectors and production cell lines, for the development and manufacture of therapeutics and vaccines to the biopharmaceutical industry.  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 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 transition of GenVec's business focus 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 the failure of Novartis 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  These forward-looking statements speak only as of the date of this press release, and GenVec assumes no duty to update forward-looking statements.

GenVec, Inc.                           
Rena Cohen                
(240) 632-5501                       
[email protected]

 (Tables to follow)





GenVec, Inc.

Condensed Statements of Operations


(in thousands, except per share data)

Quarters Ended

December 31,

Years Ended

December 31,












Operating expenses:

Research and development





General and administrative





    Total operating expenses





Operating loss





Other income:

Interest and other income, net





Net loss





Basic and diluted net loss

    per share





Shares used in computation of basic

    and diluted net loss per share







GenVec, Inc.

Selected Balance Sheet Information


(in thousands)

As of December 31,




Cash, cash equivalents and

    short-term investments



Working capital



Total assets



Stockholders' equity




SOURCE GenVec, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and t...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Y...