Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Section 2 - Financial Information
Item 2.05 Costs Associated with Exit or Disposal Activities.
On October 18, 2005, GenVec, Inc. (the “Company”) announced that it had entered into a non-binding letter of intent to sell to a third-party buyer the assets and technology related to its myoblast cell therapy program to treat congestive heart failure. Under the terms of the non-binding agreement, the Company will assign all key licenses and use agreements relating to the program to a newly formed company in exchange for a royalty on all future product and process sales revenue or license sales revenue generated from the program.
The Company will provide support to its myoblast cell therapy program through November 15, 2005, the anticipated closing date for the transaction. If a sale of the myoblast cell therapy program is not completed, the Company intends to discontinue the myoblast cell therapy program and concentrate its resources on its remaining gene-based product candidates and programs.
The Company expects to accrue a fourth quarter charge of approximately $1 million primarily relating to staff termination costs and continuing lease obligations. The Company estimates these cash charges to be made up of approximately $150,000 in staff termination costs, approximately $100,000 in equipment disposal costs and approximately $750,000 in continuing lease obligations for the Charlestown, MA facility through October 6, 2006. In addition, if the transaction with the buyer closes, the Company will record an additional non-cash write-off of intangible assets and deferred revenue totaling approximately $1.5 million.
A copy of the Company’s press release dated October 18, 2005 is filed herewith as Exhibit 99.1 and incorporated by reference.
Section 9 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits
99.1 Press Release dated October 18, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its hehalf by the undersigned hereunto duly authorized.
