Report
Dr Jonas Peciulis

Selvita - New 2017-2021 strategy to boost R&D

Selvita offers a two-pronged strategy with steady double digit growth from its drug discovery business coupled with potential upside from drug development within its broad R&D pipeline. Recently the company introduced a new strategy for 2017-2021 focused on continuing growth in the Services business and ramping up investment in the internal R&D pipeline. While this has been overshadowed somewhat by the clinical hold on the lead asset SEL24, our investment thesis for Selvita is based on supportive long-term company-specific and macro trends and we increase our valuation from PLN577m to PLN1.04bn or PLN75/share.
Underlying
SELVITA SA

Ryvu Therapeutics SA, formerly known as Selvita SA, is a Poland-based company engaged in the healthcare industry. The Company is active in the pharmaceutical and biotechnology fields. It operates through two business segments. The Innovative segment develops new drugs mainly for oncology and central nervous system diseases. The Services segment is engaged in the research and development activities, such as introducing substances on the market, client service and reducing the risk. The Company's portfolio encompasses projects, including kinesis inhibitors platform, the platform of the metabolism for the cancer and epigenetic, among others. Ryvu Therapeutics SA is active in the domestic market and internationally, such as in the United States. It operates through unit Ardigen SA and SORS Holdings Ltd.

Provider
Edison Investment Research
Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts
Dr Jonas Peciulis

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