The Management Board of Selvita S.A. with its registered office in Krakow (“Issuer”, “Company”), announces that the new Development Strategy of Selvita Group for the years 2022-2025 (“Strategy”) has been adopted on March 31, 2022.

The Issuer informs, that the business objectives of the Company’s previous strategy for 2020-23, as reported in the current report no 10/2020 on April 29, 2020, that assumed an increase in sales revenue to EUR 70 million, an increase in the scale of operations through acquisitions and over EUR 230 million in market capitalisation, had been achieved by the end of last year. In view of the above, the Company’s Management Board decided to present a new development strategy for 2022-2025.

During this period Selvita plans to triple its sales revenue (to EUR 200 million), maintaining high profitability. The Company intends to implement the strategy through organic growth and acquisitions. The implementation of the planned investments will enable Selvita to become a global leading pre-clinical CRO.

The Selvita Group Development Strategy for 2022-2025 is focused around three main goals:

  • Building a comprehensive drug discovery and development offering – supplementing the drug discovery offer and building the drug development segment;
  • Focus on providing high-value services for the customer – specialization in selected therapeutic areas and development of unique competences;
  • Growth of the Group’s business in the largest markets in the United States and the United Kingdom – growing teams and potentially establishing new research locations.

To implement the Strategy the Company plans to allocate funds in the total amount of approximately EUR 210 million, including approximately EUR 40 million to finance organic growth, approximately EUR 60 million for laboratory infrastructure development and approximately EUR 100 million for acquisitions. Selvita’s Management Board anticipates that the capital expenditures will be financed with own funds, from grants, as well as with bank loans and debt instruments, including leasing agreements (the assumed target level of net debt to EBITDA is below 3x).

In the area of acquisitions, in the years 2022-2025 Selvita plans to acquire at least two preclinical CROs in Europe or North America, providing services complementary to the Company’s offer or enabling the expansion of the scale of its operations.

The Issuer’s Management Board considers the adoption of the Development Strategy for 2022-2025 as an important event, as the Strategy sets out the main objectives of the Company and its Capital Group, the achievement of which will have an impact on the further development prospects of the Issuer.

The full text of the new Strategy is attached to this report.

Legal basis: Article 17.1 of MAR

Representatives of the Issuer:     

  • Bogusław Sieczkowski – President of the Management Board
  • Dawid Radziszewski – Management Board Member