Revived GenVec Withdraws Dissolution Plan; New CEO Named
More than three months after its board voted to liquidate and dissolve the company, GenVec today said it has withdrawn that plan in favor of a new strategy that seeks to maximize the value of its technology and assets—including a hearing-loss collaboration with Novartis—and has led to changes at the top.
GenVec president and CEO Cynthia Collins has left the company and resigned from its board of directors. Succeeding Collins in her executive and board roles is Douglas J. Swirsky, GenVec's svp and CFO since 2006.
The board now has five members. Departing the board with Collins were Edward M. Connor, Jr., M.D., Adel A.F. Mahmoud, M.D., Ph.D., and Kevin M. Rooney, following unanimous approval by the directors to withdraw the dissolution plan approved in May, and approve the new operating strategy.
"GenVec's decision to withdraw its plan of dissolution is a result of our increased confidence that milestones in our collaborations can be realized, and [in] our ability to bring our expenditures in line with our resources," Swirsky said in a statement. "Not including potential milestone payments from Novartis, we have cash, cash equivalents, and investments to fund our operations through at least the end of 2014."
By withdrawing the dissolution plan approved in May, two months after it reported a 47% year-over-year drop in annual revenue last year, GenVec can also take the time necessary to find licensees or collaborators "who assign a reasonable value to our technologies, rather than valuing the technology in the shadow of dissolution," Swirsky added.