Selvita’s announcement of an intention to split into two separate companies was the hallmark event in the Q418 results presentation. By end of 2019, the drug discovery services and oncology R&D will be split into separate listed entities (subject to financial authorities and shareholders' approvals. We believe both businesses have sufficient momentum to sustain such a split. The profitable Services segment again delivered substantial sales growth of 34% in 2018. The R&D pipeline is progressing according to plan and two clinical trials with SEL24 and SEL120 could deliver data over 2019–2020. Our valuation is slightly higher than before at PLN1.34bn or PLN83.9/share.
