Cell Genesys and Novartis sign deal

Cell Genesys and Novartis have entered into a collaboration for the development and commercialization of oncolytic virus therapies. Under the agreement, Cell Genesys has gained the exclusive worldwide rights to the oncolytic virus therapy products and associated intellectual property of Genetic Therapy, an affiliate of Novartis. In addition, Cell Genesys will receive a signature payment of $28.5 million from Novartis for the further development of several oncolytic virus therapy products.

In return, Novartis will be issued with 1,999,840 shares of Cell Genesys common stock. Furthermore, the deal provides for the sharing of future additional development costs and profits arising from the partnership. "We believe this strategic collaboration is the natural progression for our oncolytic virus therapy programs, as Cell Genesys has the ability to develop these novel therapeutics for the benefit of cancer patients," said Kathleen Walsh, chief operating officer of Novartis Institutes for BioMedical Research.