Selvita to Separate Oncology Therapeutics and Contract Research Business Units Into Two Global Companies

Two publicly traded companies to offer distinct opportunities for
investment and growth

Krakow, Poland (ots/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

ots Originaltext: Selvita
Im Internet recherchierbar: http://www.presseportal.de

Original-Content von: Selvita, übermittelt durch news aktuell