2016 could be a transformational year as in-house oncology drugs move into Phase I. A fresh Merck KGaA deal could add new candidates to the oncology pipeline. This and continued collaborations help maintain strong service revenues. SEL24 will enter Phase I in H216 (dosing expected to begin in July 2016) thereby bringing it closer to a potential deal. Our fair value has increased from PLN275m to PLN333m (from PLN21 to PLN25.4 per share) due to improved operational performance, internal programme advancement, addition of new partnering programmes and cash position.
