Company continues to advance its
corticosteroid production platform and anticipates signing a large
strategic partnership in Q2 2024
Signed two new program agreements, and
advanced three programs to the next phase of development toward
commercialization
Willow reiterates its expectations of at least
doubling its full year 2024 revenues
SUNNYVALE, Calif., May 13, 2024
/PRNewswire/ - Willow Biosciences Inc. ("Willow"
or the "Company") (TSX: WLLW) (OTCQB: CANSF), a leading
biotechnology company focused on revolutionizing industrial
manufacturing of pure, consistent, and sustainable functional
ingredients, today released its financial and operating results for
the three months ended March 31,
2024, reporting significantly reduced costs and further
progress in its commercial expansion.
"The first quarter was marked by significant progress on our
strategy to focus technical and business development efforts on our
transformative BioOxi process for manufacturing corticosteroids,"
said Dr. Chris Savile, Willow's
President & CEO. "Based on our progress, we anticipate signing
a large strategic partnership in the second quarter to co-develop
and commercialize the target corticosteroids that are expected to
generate near-term R&D revenue and longer-term upside through
commercial royalties. These new expected programs combined with our
existing collaborations are expected to drive significant revenue
growth during the year," continued Dr. Savile.
First quarter and recent corporate highlights
- On January 16, 2024, Willow
announced a new collaboration with Enterin, Inc., a clinical stage
biopharmaceutical innovator to develop a new sustainable
manufacturing route to their key intermediates and active
pharmaceutical ingredients ("APIs"). Enterin is focused on
development of groundbreaking therapeutics for treatment of
neurodegenerative diseases including Parkinson's and Alzheimer's
disease. Development is ongoing.
- On January 31, 2024, Willow
announced a new program with a leading API manufacturer to develop
a more sustainable, cost-effective manufacturing route for their
largest product sold globally. The API is a key ingredient in an
over-the-counter (OTC) medicine that is part of a multi-billion
dollar segment. Development is ongoing.
- On February 20, 2024 and
February 29, 2024, Willow announced
multiple strategic investments from Kalsec, a leading global
producer of natural taste and sensory, food protection, colors and
advanced hops ingredients for the food and beverage industry, for
the continued development of a large-volume, high value natural
ingredient for savory food applications. The investments were in
the form of private placements into Willow.
First quarter financial highlights
- Willow ended the quarter with approximately $1.6 million in cash as of March 31, 2024.
- Willow continued to transition to a more efficient company with
a total cash burn from operating activities reduced by 53%,
compared to the same period in the prior year. The Company is on
track to achieve a total monthly cash burn to below $0.5 million per month for the year.
The Company remains steadfast in its revenue expectations for FY
2024 revenues to at least double from FY 2023. This revenue
expectation for FY 2024 is forecast to be driven from existing
programs as well as new expected programs to be signed during the
year.
Willow's unaudited consolidated interim financial statements and
related management's discussion and analysis ("MD&A")
for the quarter ended March 31, 2024,
are available on the Company's SEDAR+ profile at
www.sedarplus.ca.
About Willow Biosciences Inc.
Willow develops and produces precision fermented functional
ingredients for the health and wellness, food and beverage and
personal care markets. Willow's FutureGrown™ and BioOxi™ platforms
enable large-scale production with sustainability at its core.
Willow's R&D team has a proven track record of developing and
commercializing bio-based manufacturing processes and products to
benefit our B2B partners and their customers. For more information,
visit www.willowbio.com.
FutureGrown™ and BioOxi™ are registered trademarks of Willow
Biosciences Inc.
Forward-Looking Statements
This news release may include forward-looking statements
including opinions, assumptions, estimates and the Company's
assessment of future plans, operations and expansion, and, more
particularly, statements concerning: Willow's business outlook for
the remainder of 2024, including revenue growth and reduced cash
burn; development programs with existing partners and pipeline of
potential partners; execution of a significant deal in the second
quarter of 2024, including timing and anticipated benefits thereof;
the demand and market size potential of the synthetic ingredients
industry; and the business plan of the Company. When used in this
news release, the words "will," "anticipate," "believe,"
"estimate," "expect," "intent," "may," "project," "should," and
similar expressions are intended to be among the statements that
identify forward-looking statements. The forward-looking statements
are founded on the basis of expectations and assumptions made by
the Company which include, but are not limited to: the success of
Willow's strategic partnerships, including the development of
future strategic partnerships; the financial strength of the
Company; the ability of the Company to fund its business plan using
cash on hand and existing resources; the market for Willow's
products; the ability of the Company to obtain and retain
applicable licences; the ability of the Company to obtain
suitable manufacturing partners and other strategic relationships;
completion of the strategic partnership described in this press
release; and the successful implementation of Willow's
commercialization and production strategy, generally.
Forward-looking statements are subject to a wide range of risks and
uncertainties, and although the Company believes that the
expectations represented by such forward-looking statements are
reasonable, there can be no assurance that such expectations will
be realized. Any number of important factors could cause actual
results biotechnology industry in general; the success of the
Company's research and development strategies; infringement on
intellectual property; failure to benefit from partnerships or
successfully integrate acquisitions; actions and initiatives of
federal, state and provincial governments and changes to government
policies and the execution and impact of these actions, initiatives
and policies; competition from other industry participants; adverse
U.S., Canadian and global economic conditions; adverse global
events and public-health crises; failure to comply with certain
regulations; departure of key management personnel or inability to
attract and retain talent; and other factors more fully described
from time to time in the reports and filings made by the Company
with securities regulatory authorities. Please refer to the
Company's most recent annual information form and MD&A for
additional risk factors relating to Willow, which can be accessed
either on Willow's website at www.willowbio.com or under
the Company's SEDAR+ profile on www.sedarplus.ca.
Any financial outlook and future-oriented financial information
contained in this document regarding prospective financial
performance, financial position, cash balances or revenue is based
on assumptions about future events, including economic conditions
and proposed courses of action based on management's assessment of
the relevant information that is currently available. Projected
operational information contains forward-looking information and is
based on a number of material assumptions and factors, as are set
out above. These projections may also be considered to contain
future-oriented financial information or a financial outlook. The
actual results of the Company's operations for any period will
likely vary from the amounts set forth in these projections and
such variations may be material. Actual results will vary from
projected results. Readers are cautioned that any such financial
outlook and future-oriented financial information contained herein
should not be used for purposes other than those for which it is
disclosed herein.
The forward-looking statements contained in this news release
are made as of the date hereof and the Company does not undertake
any obligation to update publicly or to revise any of the included
forward-looking statements, except as required by applicable law.
The forward-looking statements contained herein are expressly
qualified by this cautionary statement.
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SOURCE Willow Biosciences Inc.
