It will work if you make your drivetrain articulated, in other words the gear positioning is allowed to swivel, and thus not interfere with the vertical movement of the axleboxes.
The QuadDriver is a start, and if you look at the High Level gearboxes, some have an articulated section to the final drive, and there's also a DriveStretcher option to cope with more awkward layouts.
If High Level don't have exactly what you're after, do have a look at NWSL. USA-based, but they have a bewildering range of gears, from 0.2 to 0.75 MOD, and loads of other things that may be adapted. They even do bevels and a multi-start worm which is effectively a cross-helical, which is brilliant if you want a low-resistance non-locking drive.