The Conversation (0)
Selvita S.A. (WSE: SLV), one of the leading Drug Discovery and Development organizations in Europe, has published its financial results for Q1 2026 and latest backlog. The Company has decided to launch a strategic options review for the Group's further development and to maximize long-term shareholder value.
- The Group's operating revenues in Q1 amounted to EUR 19.1 million, at the upper end of the preliminary estimated results range of EUR 18.4-19.3 million. The EBITDA margin(1) reached 14%, compared to the estimated range of 13-16%. As a result of the cost-saving program implemented in H2 2025, operating costs in Q1 2026 were reduced by approximately EUR 1.5 million.
- Drug Development segment: Commercial revenues increased by 6% y/y in Q1 2026 to EUR 6.2 million, representing 35% of the Group's commercial revenues. Segment EBITDA amounted to EUR 1.7 million, up 2% y/y(1). Segment backlog increased 15% y/y supporting the Group's expectation of continued future growth driven by strategic alignment to fast-growing modalities.
- Drug Discovery segment: Commercial revenues in Q1 2026 amounted to EUR 11.6 million, compared to EUR 15.6 million in the prior year. Segment EBITDA(1) amounted to EUR 1.0 million, compared to EUR 1.9 million in Q1 2025. This was primarily due to the continuing challenging market for outsourced European drug discovery services companies and some project delays.
- The full-year 2026 backlog as of May 18, 2026 stands at EUR 58.1 million(2) compared to EUR 58.9 million last year.
- A webcast to discuss Selvita's Q1 results and outlook for 2026 will be held on May 21 at 11:00 CET. The event will be available at live.selvita.com
- Selvita announced the launch of a strategic review to assess options to support the Group's further development and maximize shareholder value.
Boguslaw Sieczkowski, Co-Founder, significant shareholder and Chief Executive Officer of Selvita said:
"We are observing a progressive recovery in the biotechnology sector, particularly in the United States. However, the market remains volatile, as reflected, amongst other factors, in our Q1 results. We are focusing our efforts on ensuring that the subsequent periods show clear improvement, reflecting the acceleration of growth in Drug Development and a stabilized performance in Drug Discovery. Our profitability is supported by the cost-saving program implemented in the second half of 2025.
"The Drug Development segment has grown by 20-25% in recent years and is now a key growth driver for the Group, already accounting for more than one-third of commercial revenues. We see potential for its further development and have identified specific pathways by which we can accelerate growth in this segment.
"The Drug Discovery segment continues its transformation, driven by ongoing structural changes in the outsourced European drug discovery services market. Last year, we optimized the segment's resources. We are currently focusing our efforts on more complex, high-margin services and increasing automation."
Dariusz Kurdas, Management Board Member and Chief Financial Officer of Selvita, said:
"With EUR 19.1 million in operating revenues and a 14% EBITDA margin, we came in the middle of the range of the Q1 preliminary estimates published earlier. In the Drug Discovery segment we observed some project delays. These projects are still expected in the remaining quarters of the year, supporting improved financial performance compared to Q1. This year, we expect an improvement in profitability thanks to the approximately EUR 6.4 million in savings under the optimization program."
STRATEGIC OPTIONS REVIEW
Selvita has continued to observe contrasting market dynamics across Drug Discovery and Drug Development.
In Drug Discovery, the European outsourced services market has remained challenging. However, the Group sees encouraging signs in the biotechnology funding environment and preliminary signs of increased levels of new pipeline opportunities which will support improved performance for the remainder of 2026 compared to Q1. Over the medium term, the Group expects continued headwinds in certain areas of small molecule Drug Discovery, whilst demand for high value-add and integrated services, especially for advanced modalities, is expected to continue to grow.
In Drug Development, the Group expects to see continued momentum in demand for services, notably in fast-growing advanced modalities.
In light of this market backdrop, Selvita has commenced a broad strategic review to assess options which would support the Group in achieving larger scale and maximizing long-term shareholder value.
The Group is considering, and is open to, a variety of strategic options, which may include a take private transaction, or an acceleration of Selvita's M&A and organic growth initiative capital deployment strategy. This includes scenarios where additional financing would be considered solely to support such value-accretive opportunities and incremental growth initiatives.
Selvita has not set a timetable for the review, nor has it made any decisions at this stage regarding the selection of or preference for any option. Updates on the conclusion of the strategic review will be publicly communicated by Selvita as and when appropriate, and in accordance with applicable regulations.
The strategic options review will be conducted with a strong focus on uninterrupted client service, operational stability, and continued excellence in project delivery.
To facilitate the strategic review, Selvita has engaged Rothschild & Co as financial adviser.
Boguslaw Sieczkowski said:
"It is our belief that the Drug Discovery and Drug Development markets are evolving to favour players of larger scale with broad geographic and service offering capabilities across modalities. We do not believe the Group's current valuation reflects its growth trajectory in Drug Development and unique capabilities and market positioning in Drug Discovery. We, therefore, think that now is an appropriate time to assess our potential strategic options. The underlying premise of the process is to improve the prospects of each of the Group's segments and deliver shareholder value."
Q1 2026 FINANCIAL RESULTS
Operating revenues in Q1 2026 amounted to EUR 19.1 million, compared to EUR 21.8 million in the prior year. The negative impact of foreign exchange differences on revenues amounted to approximately EUR 0.2 million.
Group EBITDA in Q1 2026 amounted to EUR 2.7 million, compared to EUR 3.6 million in the prior year(1). The EBITDA margin reached 14%. Savings resulting from the implemented optimization program amounted to approximately EUR 1.5 million.
Commercial revenues in the Drug Discovery segment in Q1 2026 amounted to EUR 11.6 million, compared to EUR 15.6 million in the prior year. Segment EBITDA(1) amounted to EUR 1.0 million, compared to EUR 1.9 million in the prior year.
Commercial revenues in the Drug Development segment in Q1 2026 amounted to EUR 6.2 million, up 6% y/y, already accounting for 35% of total commercial revenues. Segment EBITDA reached EUR 1.7 million, up 2% y/y, corresponding to a margin of 27%(1).
BACKLOG FOR 2026(2)
The Group's backlog for 2026 amounts to EUR 58.1 million compared to EUR 58.9 million in the same period last year.
The backlog in the Drug Discovery segment stands at EUR 35.3 million (down 13% y/y), while in the Drug Development segment it amounts to EUR 19.4 million (up 15% y/y).
DRUG DISCOVERY TECHNOLOGIES DEVELOPMENT PROGRAM FOR 2026-2029
In recent quarters, Selvita secured four non-dilutive grants with a combined subsidy value of EUR 26.4 million. Nearly half of this amount – EUR 12.0 million - will be invested in the development of advanced services in 2026-2029. Together, these projects represent the most intensive technology development program in the Group's history, spanning most departments within the Drug Discovery segment and incorporating a significant AI component.
The remaining portion of the grant funding will support infrastructure development, including the acquisition of state-of-the-art equipment and, in 2028-2029, the expansion of Selvita's own laboratory space in Kraków. The potential investment in new, specialized research facilities will be financed through a combination of grant funding (approx. 40%), bank debt (approx. 50%), and the Group's own funds (approx. 10%). In March 2026, Selvita signed a loan agreement securing financing for the investment. The largest share of capital expenditures is planned for the final phase of the investment, scheduled for 2029.
(1) Results exclude non-cash costs of the non-dilutive employee incentive program.
(2) Backlog as of May 18, 2026 and May 19, 2025; includes the revenues already invoiced in the financial year and portfolio of orders for the financial year.
All % calculated from PLN. All values are calculated from PLN using an average exchange rate for the respective reporting period.
About Selvita (WSE: SLV; sWIG80)
Selvita is one of the leading Drug Discovery and Development organizations in Europe. The Company provides comprehensive solutions supporting clients and their programs across a broad range of therapeutic areas, with expertise in infectious diseases, inflammation, fibrosis, and oncology. Selvita offers a wide range of standalone and fully integrated drug discovery and development solutions. Its service portfolio spans the entire value chain, from early-stage drug discovery to preclinical development, for both small molecules and therapeutic antibodies.
The Selvita Group has been operating since 2007 and employs approximately 900 highly qualified specialists. More than 30% of Selvita's scientists hold a PhD degree. The Group's headquarters and main laboratories are located in Kraków, Poland, with additional research facilities in Poznań, Wrocław, and Zagreb, Croatia. The Company's sales offices are located in major global biotech hubs, including the Boston and San Francisco Bay Areas in the United States, as well as Cambridge in the United Kingdom.
Selvita is listed on the Warsaw Stock Exchange (WSE: SLV) and is a component of the sWIG80 index.
For more information, please visit: www.selvita.com
View original content:https://www.prnewswire.com/news-releases/selvita-reports-q1-2026-results-and-launches-strategic-options-review-302778547.html
SOURCE Selvita S.A.
