Selvita is an R&D and drug discovery services company. It operates three business segments: Innovations Platform (internal R&D pipeline), Research Services (medicinal chemistry/biology, biochemistry) and Ardigen (a spin-out bioinformatics company, 52% owned).
Selvita’s ongoing split into two separate companies will be the hallmark event in 2019. By the end of this year, the drug discovery services and oncology R&D will be split into separate listed entities (subject to financial authority and shareholder approval). We believe both businesses have sufficient momentum to sustain such a split. The profitable Services segment again delivered substantial sales growth of 34% in 2018 followed by 29% q-o-q growth in Q119. The R&D pipeline is progressing according to plan and two clinical trials with SEL24 and SEL120 could deliver data over 2019–20. The lead product is SEL120, a CDK8 inhibitor, partnered with the Leukemia & Lymphoma Society for AML. Recently the FDA cleared an IND application to conduct a Phase I trial. SEL24 is a dual PIM/FLT3 inhibitor in Phase I/II for AML out-licensed to Menarini in March 2017.
The profiles of SEL24 and SEL120 are potentially unique compared to existing clinical-stage competitors and both candidates may offer efficacy advantages. Contract research is a fiercely competitive, but still rapidly growing market and we believe Selvita’s geographical location and lower cost benefits make it well placed to compete.