KRAKÓW, Poland, Nov. 7, 2019 /PRNewswire/ -- Selvita (WSE:
SLV) - one of the largest preclinical contract research
organizations in Europe – reported
today third quarter 2019 financial results and provided a corporate
update following a recent corporate split of the oncology
therapeutics (Ryvu Therapeutics) and contract research (CRO)
business units (Selvita).
The services segment of the Company has recorded USD 5.59 million of commercial revenue in Q3
2019, which marks a 45% increase compared to Q3 2018.
In the first three quarters of 2019, Selvita Group recorded
USD 18.8 million of revenues, 32%
increase comparing to the corresponding period in 2018. Operating
profits, (EBITDA excluding IFRS16 impact) result amounted to
USD 3.5 million, an increase of 21%
compared to Q3 2018, and the backlog **for 2019 currently
amounts to USD 25.1 million and is
38% higher than at corresponding time in 2018.
- Our financial results up to date represent more than we
wished for. The increase in the commercial revenues was
significantly higher than the declared 30%, as it amounted to 36%
in the period from January to September, and 45% in Q3 2019 alone.
Operating margin for Q1-Q3 2019 amounted to 11.4% - says
Boguslaw Sieczkowski, co-founder,
significant shareholder and Chief Executive Officer at Selvita.
Revenues of the services segment in the first three quarters
amounted to USD 15.1 million, up by
36% comparing to Q1-Q3 2018, and operating profit to USD 2.0 million (11% more y/y). In the third
quarter alone, these dynamics reached 45 and 13%, respectively.
- The last quarters of this year were a period of a dynamic
development for Selvita. Not only we have increased employment, but
also made significant investments in the equipment. This has
allowed us to build a solid base for another organic leap of
business scale. The first results of our work were already visible
in Q3 2019 - says Boguslaw
Sieczkowski.
The service segment is comprised of two departments: chemistry
and biology. In 2019, the dynamics of the biology department have
stood out in particular - its backlog currently amounts to
USD 9.9 million and is 75% higher
than for a corresponding point of time in 2018.
The total commercial backlog of the service segment currently
sums up to USD 20.9 million, a 40%
increase compared to 2018.
Revenues of the bioinformatics segment (Ardigen, in which
Selvita S.A. holds 52 percent of shares), amounted to USD 2.5 million and were 32% higher than in Q3
2018. Operating profit amounted to USD 0.2
million, compared to USD 0.3
million in the same period last year.
- At the moment, Ardigen's primary goal is dynamic
development of its own technology platforms, as well as marketing
and sales activities. This drives the increase in costs, but in the
long run it will lead to a significant growth in the scale of
business, resulting in the increase in the value of the company
- explains Bogusław Sieczkowski.
The backlog of the bioinformatics segment amounts to
USD 2.6 million, which is 27% higher
than a year ago.
Selvita after the split
At the beginning of October, the National Court Register of
Poland ("KRS") has recognized the
corporate split of the Selvita parent company into two distinct
organizations. The recognition by the court follows the
Sept. 19, 2019, shareholder
resolution to separate oncology therapeutics and contract research
(CRO) business units.
Selvita provides comprehensive research and development
services, mainly to clients in the pharmaceutical and biotechnology
industries. The company's medium-term goal is to enter the top ten
largest preclinical CROs in the world.
Selvita's Services Segment has been growing in the last years at
a rate of 30-40% per year and has been permanently profitable. The
company assumes maintaining this level of growth dynamics. At the
same time, the company plans to grow through acquisitions,
expecting the first transaction in 2020. Selvita is interested both
in domestic and foreign companies which will allow it to achieve
its business goals: increasing the scale of operations and
expanding the portfolio of services offered. As a leading company
on the market, Selvita will be in an excellent position to build
lasting value, thanks to selective and systematic takeover
strategies, which will be made possible through e.g. debt
financing, which was difficult to access before the corporate
split.
Boguslaw Sieczkowski, serves
currently as the Chief Executive Officer at Selvita. He is also one
of the co-founders of the company, and former Executive Vice
President and Chief Operating Officer. In addition, the Management
Board is comprised of three members from the company's current top
management: dr Milosz Gruca,
Director of the Biology Department and Executive Vice President, dr
Miroslawa Zydron, Director of the
Chemistry Department and Edyta
Jaworska responsible for the development of integrated drug
discovery projects. New appointments to the Management Board have
also been made, which include Dawid
Radziszewski, General Counsel and Head of Corporate
Development who will be directly responsible for the acquisitions
and integration of companies within the Group, and Dariusz Kurdas, who assumed the position of
Chief Financial Officer.
**Backlog for 2019 as on 28/10/2019, backlog for 2018 as on
9/11/2018. Backlog defined as the value of the portfolio of
contracts signed as of the report publication date, incl.
commercial contracts and grant agreements.
About Selvita
Selvita is an integrated service company providing
multidisciplinary support in resolving the unique challenges of
research within area of drug discovery, regulatory studies, as well
as research and development.
The company was established in 2007 and currently employs over
450 professionals. Selvita is headquartered in Krakow, Poland, with a second research site in Poznan,
Poland and foreign offices located
in Cambridge, MA and San Francisco Bay Area, in the U.S., as well
as in Cambridge, UK. The company
has a proven track record of successfully completed projects and
customers in 40 countries. Majority of Company revenues come from
pharma, biotech and agro-chemical companies from the US and
Europe. Selvita is listed on the
Warsaw Stock Exchange (WSE:SLV).
Contacts:
Natalia Baranowska
(corporate)
+48 784 069
418
natalia.baranowska@selvita.com
|
Piotr Książek |
InnerValue Investor Relations
+48 501 988
693
p.ksiazek@innervalue.pl
|
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SOURCE Selvita