In a preferred embodiment, the present invention relates to a Schwannoma cell line derived from a Schwann tumor in a patient with Neurofibromatosis type 2 (NF2) and immortalized with HPV E6-E7 genes. The cell line has a unique splice site mutation of the NF2 gene. The immortalized cell line is non-tumorigenic but has altered growth properties such as higher proliferation rate and independence of Schwann cell growth factors. Methods of using this unique cell line for pharmacologic screening are disclosed.