On September 5, 2019 Selvita (WSE: SLV) reported second quarter 2019 financial results and provided a corporate update (Press release, Selvita, SEP 5, 2019, View Source [SID1234539281]).

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"We continue to execute on the priorities we set out early in the year," commented Pawel Przewiezlikowski, Chief Executive Officer of Selvita. "We expect to see our oncology therapeutics and research services divisions operate as independent public companies in the fourth quarter of 2019, and our portfolio programs continue to advance as expected. Dosing of the first patient in our Phase 1 study of CDK8 inhibitor SEL120 is expected in the third quarter of 2019 and we expect to select an additional candidate to advance into clinical development by the end of 2019."

Recent Achievements

In June, a poster relating to the Phase 1/2 study of SEL24/MEN1703, an oral dual PIM/FLT3 kinase discovered by Selvita, was presented at the 24th Congress of the European Hematology Association (EHA) (Free EHA Whitepaper) (Abstract PF281).
In June, a poster relating to the Phase 1/2 study of SEL24/MEN1703 at the American Society of Clinical Oncology (ASCO) (Free ASCO Whitepaper) Annual Meeting (Abstract TPS7062).
Selvita Oncology Second Quarter and Six Months Ended June 30, 2019 Financial Results

Operating loss (EBITDA excluding IFRS16 impact) for the quarter ended June 30, 2019, was $(2.7) million, compared to net loss of $(0.8) million for the quarter ended June 30, 2018. Revenues attributable to non-dilutive grant sources were $2.1 million for the quarter ended June 30, 2019, compared to grant revenues of $1.6 million for the quarter ended June 30, 2018. Research and development expenses were $5.0 million for the quarter ended June 30, 2019, an increase of $1.8 million, compared to $3.2 million for the same period ended June 30, 2018. The increase in research and development expenses was primarily attributable to the fact that the Group strongly focuses on the development of its own research projects and preparing them for commercialization at the later stages of development.

Operating loss (EBITDA excluding IFRS16 impact) for the six months ended June 30, 2019, was $(4.9) million, compared to net loss of $(1.4) million for the quarter ended June 30, 2018. Revenues attributable to non-dilutive grant sources were $4.1 million for the six months ended June 30, 2019, compared to grant revenues of $2.7 million for the six months ended June 30, 2018. Research and development expenses were $9.5 million for the six months ended June 30, 2019, an increase of $4.0 million, compared to $5.5 million for the same period ended June 30, 2018.

At June 30, 2019, Selvita Oncology held $20 million in cash, cash equivalents, and short-term investments.

Selvita CRO Second Quarter and Six Months Ended June 30, 2019 Financial Results

Research Services revenues for the quarter ended June 30, 2019, were $5.5 million, an increase of $1.3 million compared to revenues of $4.2 million for the quarter ended June 30, 2018. Operating profits (EBITDA excluding IFRS16 impact) in the Services Division were $1.2 million for the quarter ended June 30, 2019, as compared with $0.9 million for the same period ended June 30, 2018.

Research Services revenues for the six months ended June 30, 2019, were $10.4 million, an increase of $2.2 million compared to revenues of $8.2 million for the quarter ended June 30, 2018. Operating profits (EBITDA excluding IFRS16 impact) in the Services Division were $2.1 million for the quarter ended June 30, 2019, as compared with $1.8 million for the same period ended June 30, 2018.