Two publicly traded companies to offer distinct opportunities
for investment and growth
KRAKOW, Poland, March 28, 2019 /PRNewswire/ -- Selvita (WSE:
SLV), a clinical stage company engaged in the research and
development of novel cancer therapies as well as provision of drug
discovery and development services, today announced that it plans
to separate into two companies. One company will focus on
development of small molecule therapeutics in oncology and the
other will provide contract research services. Each company will
build upon capabilities that have been integral to the Company
since the founding of Selvita in 2007. Both companies will be
publicly listed on the Warsaw Stock Exchange.
"There are clear opportunities for value creation from two
entities with freedom to operate independently, built from the
separate business units of Selvita today," commented Pawel
Przewiezlikowski, Chief Executive Officer of Selvita. "We are proud
of the work that has brought us to the stage where each unit is at
the forefront of an area of expertise. Our capabilities in each
unit provide excellent potential for sustainable, long-term growth.
We look forward to the increased overall value from each distinct
company, building upon an established tradition of operational
excellence."
The oncology therapeutics company will control the current
Selvita pipeline of small molecules and its engine for consistent
discovery of differentiated compounds in oncology. The research
services company will pursue further dynamic organic growth and
expand its business model with acquisitions of high value
complementary biopharmaceutical service providers. The research
services company will retain the Selvita name and the oncology
therapeutics company will be named at a later date. At the time of
the split, approximately 170 individuals or full-time equivalent
employees are expected to become part of the therapeutics business
and the research services company will employ approximately 325
individuals.
A Foundation in Research Services and Discovery
The Selvita research services unit has provided recognized value
with an established, sustainable customer base. Services provided
by Selvita recognized 2018 revenue of nearly $16 million, built on a strategy of prioritizing
organic growth on core offerings. Over recent years the company
services segment has demonstrated consistent organic revenue annual
growth of more than 30 percent (cumulative 276 percent growth in
2014-2018) and sound net earnings. Selvita has established a strong
reputation in the biopharmaceutical industry for maintaining
consistently high standards of quality and client satisfaction.
The Selvita discovery pipeline has led to global, first-in-class
programs for oncology therapeutics, a diverse set of preclinical
programs, and discovery stage partnerships in areas that reflect
world-class expertise for oncology therapeutics. Two programs
generated from the Selvita discovery engine will have active
clinical programs in the first half of 2019: partnered Menarini
program SEL24/MEN1703 and wholly-owned therapeutic candidate
SEL120, a CDK8 inhibitor with potential for development in acute
myeloid leukemia and multiple other areas of oncology.
Distinct Opportunities for Growth
Following the split, Selvita research services will broaden
beyond its historical pattern of organic growth to include the
pursuit of consistent, sustainable acquisitions of contract
research businesses. As an established, well regarded and
specialized acquirer, Selvita will be positioned to return high
value with a strategy of selective, systematic acquisitions. As a
result of the split, the company will be able to acquire external
debt and other non-dilutive financing. The research services
company will continue to target organic growth from within and
maintain its strengths as a straightforward research partner for
biopharmaceutical industry clients that achieves goals with strong
organizational management and delivers client satisfaction at the
highest level.
Following the split, the Selvita oncology therapeutics company
will advance SEL120 and other early stage programs from three
current discovery platforms: Targeted Therapeutics, Cancer
Metabolism/Immunometabolism and Immuno-oncology platforms. The
oncology therapeutics business will prioritize opportunities that
use novel scientific approaches directed at improving treatment
outcomes for patients, executed with agility and a balanced
approach to risk management. The therapeutics company will have
capabilities to select one new candidate per year to advance into
the clinic from diverse discovery-stage research platforms.
Subject to corporate approvals the current Selvita CEO
Pawel Przewiezlikowski will become
CEO of the oncology therapeutics company and the current Selvita
Chief Operating Officer Boguslaw
Sieczkowski will become CEO of contract research. The
supervisory boards for each company will be determined and
announced at a later date.
Transaction Details
The transaction is intended to result in maintaining the current
shareholding structure of Selvita with both new companies. For each
existing share in Selvita S.A., shareholders will receive one share
in the Selvita oncology therapeutics company and one share in the
Selvita research services company. The Selvita research services
company will retain ownership of shares in precision medicine AI
company Ardigen. The Selvita oncology therapeutics company will
assume ownership of shares of spin-off company NodThera, which is
focused on therapeutics based on inflammasome biology.
The transaction is expected to be completed by the fourth
quarter of 2019, subject to approvals by Selvita shareholders and
the Polish Financial Supervisory Authority.
About Selvita
Selvita is developing novel small molecule therapies that
address emerging targets in oncology with
industry-leading research expertise supported by a research
services division. Pipeline candidates apply diverse mechanisms
directed at kinases, synthetic lethality pathways, immuno-oncology
pathways and other cancer-related targets. SEL24/MEN1703 is a dual
PIM/FLT3 kinase inhibitor licensed to the Menarini Group in
clinical development for the treatment of acute myeloid leukemia.
SEL120 is a CDK8 kinase inhibitor with potential for development in
indications including hematological malignancies and solid tumors.
Selvita is headquartered in Krakow with offices in the U.S. and
U.K.
Contact:
Julia Balanova (investors)
+1-646-378-2936
jbalanova@troutgroup.com
Rich Allan (media)
+1-646-378-2958
rallan@troutgroup.com
Piotr Ksiazek (investors and
media, Poland)
+48-501-988-693
p.ksiazek@innervalue.pl
Malgorzata Syjud (corporate)
+48-660-797-362
malgorzata.syjud@selvita.com