Selvita S.A.: Rozszerzenie działalności Spółki (2024-03-18)

Selvita S.A. expands operations through introduction of new type of services related to the biologic drug discovery and development

The Managment Board of Selvita S.A., headquartered in Kraków (“Selvita”, "Company"), hereby informs that on March 18, 2024, the Company adopted a resolution regarding the expansion of the Company's operations through introduction of new type of services related to the discovery and development of biologic drugs. The Company's objective is to broaden its services portfolio and create entirely new revenue streams.

The new activity in the field of biologic drugs will enable the Company to address the second-largest segment of the drug discovery market, after small molecule drugs. According to Transparency Market Research data, the biologic drugs market is projected to be worth USD 856 billion by 2031, growing at an average annual rate (CAGR) of 6.9% from 2023 to 2031.

The Company plans to commence its operations in the biologic drugs field by providing services related to the preclinical development of monoclonal antibodies, which account for a significant portion of the biologic drugs market. Grand View Research data indicates that this market is expected to reach USD 495 billion by 2030 with a CAGR of 11.0% from 2023 to 2030.

In connection with the planned entry into the new service area, Selvita entered into a conditional equipment purchase agreement on March 18, 2024, with Pure Biologics S.A. headquartered in Wrocław, Poland (“Seller”). Under this agreement for the amount of PLN 1,976,138 net, Selvita will acquire a set of high-quality equipment necessary to provide services related, among others, to the selection and preclinical development of biologic antibodies (“Equipment”).

The transfer of ownership of the Equipment to Selvita shall occur no later than April 30, 2024, primarily following the condition of obtaining consent for the sale of the Equipment ("Consent") expressed by the Extraordinary General Meeting of Shareholders of the Seller, along with standard conditions for such transactions. The takeover of the Equipment will be preceded by a technical audit.

On March 15, 2024, the Company also concluded - conditioned by Consent - a 5-year lease agreement ("Agreement") for approximately 430 square meters of laboratory space with the space owner in the Business Garden complex in Wrocław, Vastint Poland sp. z o.o. The Agreement allows the possibility of increasing the laboratory space to approximately 800 square meters. Ultimately, this could create jobs for approximately 50 specialists.

Simultaneously, the Company has entered into letters of intent with 16 high-class specialists in the field of biologic drug development ("Team"), with extensive experience gained, among others, from Pure Biologics S.A., expressing readiness to enter into employment agreements with Selvita.

The commencement of operations related to services in the field of biologic drug development is planned for the first half of April 2024.

The Team, Equipment, and laboratory space are intended to form the foundation for further expansion of Selvita's service portfolio in biologic drugs and the gradual increase in resources in line with the increase of sales in the new area.

In the opinion of the Company, launching such activities in an organic model would entail several times higher financial outlays and would require a time horizon of 12 to24 months.

The Company considers this announcement significant due to the strategic nature of the decision to launch a new service area related to the development of biologic drugs.

Disclaimer: This English language translation has been prepared solely for the convenience of English-speaking readers. Despite all the efforts devoted to this translation, certain discrepancies, omissions, or approximations may exist. In case of any differences between the Polish and the English versions, the Polish version shall prevail. Selvita S.A., its representatives, and employees decline all responsibility in this regard.