Selvita

WSE: SLV

PLN883.2m market cap

PLN55.3 last close

Selvita is an R&D and drug discovery services company. It operates two main business units: Innovations Platform (internal R&D pipeline) and Research Services (medicinal chemistry/biology, biochemistry).

Investment summary

Selvita is an R&D and drug discovery services company. Total sales in Q318 were PLN 56.6m (an increase of 17% from Q318), with 85% of revenue coming from the services segment. In R&D, Selvita out-licensed its lead drug SEL24’s to Menarini in March 2017 with a total potential value of the deal of €89.1m. SEL24 is a dual PIM/FLT3 inhibitor in Phase I/II for AML and the first such compound to progress to Phase I/II, to our knowledge. Second lead product is SEL120, a CDK8 inhibitor, partnered with the Leukemia & Lymphoma Society for AML and is undergoing IND-enabling studies. Multiple collaborations signed with partners such as Merck KGaA, H3 Biomedicine (Eisai) and JV (Nodthera) with Epidarex Capital validate Selvita’s research capabilities. As of 30 September 2018, Selvita had PLN 104.7m in cash and other monetary assets.

Y/E Dec
Revenue (PLNm)
EBITDA (PLNm)
PBT (PLNm)
EPS (gr)
P/E (x)
P/CF (x)
2016A 66.7 8.3 4.6 63.82 86.6 N/A
2017A 105.9 18.5 10.2 50.76 108.9 74.3
2018E 104.7 (8.8) 5.9 11.61 476.3 N/A
2019E 119.9 (11.4) (15.8) (98.79) N/A N/A
Last updated on 21/02/2019
Industry outlook

The profiles of SEL24 and SEL120 are potentially unique when 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.

Last updated on 21/02/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (PLNm) 135.6
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 0.4 7.6 (10.8)
Relative* 0.7 (1.9) (9.2)
52-week high/low 63.1gr/45.0gr
*% relative to local index
Key management
Paweł Przewięźlikowski CEO
Bogusław Sieczkowski COO
Tomasz Nocun IR