GenVec's CEO Discusses Q2 2012 Results - Earnings Call Transcript

GenVec, Inc. (GNVC)

Q2 2012 Earnings Conference Call

August 9, 2012 10:00 AM ET

Executives

Douglas Swirsky – Senior Vice President & Chief Financial Officer

Cynthia Collins – President & Chief Executive Officer

Analysts

Joseph Pantginis - Roth Capital Partners

Julie Bickel - Boenning & Scattergood

Peter Stackeof [ph] - Private Investor

Presentation

Operator

Good morning ladies and gentlemen, welcome to GenVec’s 2012 second quarter earnings conference call. My name is Bonney, and I will be your conference facilitator today. At this time, all participants are in a listen-only mode. After GenVec’s management concludes their remarks, there will be a question-and-answer period. (Operator Instructions)

We would like to remind everyone that this call is being recorded today, Thursday, August 9 th, 2012. If you do not wish to continue your participation, you may disconnect at any time. I will now turn the call over to Mr. Douglas Swirsky, GenVec’s Senior Vice President and Chief Financial Officer.

Douglas Swirsky

Thank you for participating in this call. Joining me this morning is Ms. Cindy Collins, GenVec’s President and CEO. During this call, we will make forward-looking statements within the meaning of the Private Securities Litigation Reform Act involving risks and uncertainties and our actual results may differ materially from our expectations.

For a complete statement of these risks, please review statements made in our SEC filings and this morning’s press release. Today, you will hear Cindy review GenVec’s strategy and discuss the progress we are making. I will then provide you with an overview of GenVec’s second quarter financial results.

After these remarks, Cindy and I will be happy to take your questions. We are optimistic about the opportunities at GenVec. We have developed a focused and novel product portfolio based on our core proprietary technology. We believe that our programs in hearing and balanced collaboration with Novartis in particular provides shareholders with a substantial opportunity.

On this call, Cindy will highlight key programs where we see exciting growth potential. A major development this quarter was the appointment of Cindy Collins as GenVec’s new President and CEO. For those of you unable to attend our recent annual meeting of stockholders, this call will be a first opportunity to hear directly from our new CEO.

Cindy has a wealth of experience and bring significant business, strategic and leadership skills to our management team. Prior to joining GenVec, she served as Group Vice President, Cellular Analysis of Beckman Coulter. Prior to that, Cindy also served as Chief Executive Officer of Sequoia Pharmaceuticals, a private biotechnology company developing antiviral drugs. Earlier, Cindy was President of Clinical Micro Sensors, Inc., a wholly owned subsidiary of Motorola where she directed the development and commercialization of molecular diagnostic microarray products and led the eventual strategic divestiture of the division.

Before Motorola, she spent over 17 years at Baxter Healthcare in a variety of executive roles, including President of Global Oncology and Vice President of Strategy and Portfolio Management of BioScience.

As you can see, Cindy Collins is a significant addition to our team and is a great asset to the company and its programs. With that, Cindy will now tell you a little more about herself, discuss GenVec’s business strategy and provide you with some updates on GenVec programs. Cindy?

Cynthia Collins

Thank you, Doug. My first two months at GenVec have been very interesting, and I am spending significant time evaluating our technology and product portfolio pipeline to determine the best path forward to increasing shareholder value. I believe that GenVec has a promising product portfolio, validating partnerships and a solid cash position.

Beyond the bio that Doug provided, let me tell you a few additional things about my background. I come to GenVec from Beckman Coulter, a publicly traded diagnostic company where I had P&L responsibility for a $1-billion global diagnostic and life sciences business. Prior to Beckman Coulter, I was the CEO of a venture-backed drug discovery company developing next-generation HIV therapeutics.

Before that, I ran global businesses for Motorola and Baxter Healthcare and began my career with Abbott Laboratories. I have experience in small molecule pharmaceuticals, therapeutic proteins, vaccines, gene and cell therapy, diagnostics, medical devices and life sciences. My educational background is a Bachelors Degree in Microbiology from the University of Illinois, Urbana Champaign, and an MBA from the University of Chicago.

I have 32 years of experience in leading technical and global businesses in a variety of therapeutic areas, particularly oncology and infectious diseases. I also have a great deal of business development and alliance management experience. Before deciding to join GenVec, I did a lot of due diligence. What I found is a company with a robust technology platform, talented people, strong partners and an exciting future. I believe a key element of GenVec’s success will be a strategy to develop product programs through collaborations. This strategy reduces the risk associated with drug development and allows us to pursue new opportunities while keeping our cash burn rate low. We have established partnerships with leading organizations like Novartis and Santa Fe, who are experts in taking drugs through development and inter-commercialization and can and will bear the heavy financial lifting that is required to do so.

Collaborations and partnerships like these brings the skills and capabilities that increase the probability of success, while reducing our need to access outside capital. I see our key growth strategies as one, advancing the current programs; two, adding new opportunities to the pipeline; and three, validating new opportunities through collaborations.

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