By Brady Huggett

Genvec Inc. filed a registration statement with the SEC for a proposed initial public offering to raise an estimated $50 million, more than two years after it pulled its last IPO off the table.

Underwriters for the offering are JP Morgan Securities Inc., of New York; UBS Warburg LLC, of Stamford, Conn.; and AG Edward and Sons Inc., of St. Louis.

Genvec, of Gaithersburg, Md., filed for an IPO of 2.5 million shares at between $11 and $13 per share in May 1998, seeking $30 million if sold at the middle range of $12. In August 1998, the company withdrew the proposed offering, citing an uncertain market. (See BioWorld Today, May 4, 1998; and Aug. 4, 1998.)

On Sept. 15, Genvec had 8.98 million shares of common stock outstanding. Highland Capital Partners own 1.25 million shares, or 13.9 percent of the company; Hillman Medical Ventures Partnerships owns 1.1 million shares, or 12.3 percent; and Pfizer Inc. owns just over 1 million shares, or 11.2 percent. Hal Broderson, a director at Genvec, also owns 1.1 million shares. The company plans to use the proceeds for research and development, clinical trials, capital expenditures, working capital and general purposes, including possible acquisitions.

Genvec develops gene-based products that cause the production of therapeutic proteins at the site of disease and is currently focused on cardiovascular disease, particularly coronary artery disease and peripheral vascular disease, oncology and ophthalmology.

Biobypass angiogen is Genvec's lead product candidate. It produces vascular endothelial growth factor (VEGF) - a protein that stimulates the formation of new blood vessels and improves blood flow - in diseased tissues, and Genvec has completed Phase Ib studies in 31 patients. Based on the results, the company, in collaboration with Warner-Lambert Co., of Morris Plains, N.J., initiated Phase II trials for the treatment of coronary artery disease in April and peripheral vascular disease in August.

Other Genvec products are TNFerade, which has completed preclinical testing and is being developed to treat cancer in combination with radiation therapy; Genstent, in preclinical testing to prevent the narrowing of blood vessels resulting from vascular damage caused by medical procedures such as angioplasty and vascular grafts; and pigment epithelium-derived factor preclinical candidates, being developed to treat macular degeneration and diabetic retinopathy.

Genvec's technology is based on the use of adenovectors, or modified adenoviruses. The company takes adeno vectors, incorporates genes that provide a blueprint for the production of desired therapeutic proteins into them, then administers the finished product directly to the site of disease using devices such as catheters and syringes.

Genvec agreed to collaborate with Warner-Lambert in July 1997 to research, develop and commercialize products incorporating the VEGF gene for the treatment of coronary artery disease and peripheral vascular disease. Pfizer's acquisition of Warner-Lambert in June did not affect the collaboration, which leaves Warner-Lambert with the responsibility for clinical development, regulatory approval, manufacturing and commercialization of any products the companies develop under their collaboration.

As of June 30, Warner-Lambert had paid Genvec $49.5 million in research and development funding, milestone payments, equity purchases and license fees. n