WILLOW BIOSCIENCES REPORTS THIRD QUARTER 2024 FINANCIAL RESULTS AND PROVIDES CORPORATE UPDATE
Company reports record revenue of $1.7 million in Q3
Company announced a partnership in the high growth biopesticides sector that is expected to generate over $2 million in revenue in its first year
Company closed a brokered financing for aggregate gross proceeds of $1.6 million
Company signed a royalty agreement with Kalsec that includes milestone payments and tiered royalty payments on net worldwide sales after launch
Company signed a second program with a global ingredient manufacturer to develop an enzyme for a large volume API and in November successfully completed its first program with the partner
Willow increasing its 2024 revenue guidance for the year to over $4.5 million
SUNNYVALE, Calif., Nov. 12, 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, announces third quarter financial results and provides a corporate update.
"I'm proud of the high performance of our team, reporting record revenues in the quarter, as well as the continued expansion of our business development pipeline that we anticipate will generate continued revenue growth. We believe the third quarter was an inflection point for Willow as our pipeline expansion growth was with large, well-respected partners in sectors that reinforce our position in key high-growth industrial markets while our current partnered programs continue to advance closer to commercialization." said Dr. Chris Savile, Willow's President and CEO. "More specifically, during the quarter we delivered the first strain to our largest partnered program with Laurus Labs, signed a commercial license and royalty agreement with our food ingredient partner, Kalsec, and continued to expand our portfolio by partnering with an innovative Ag-Biotech company to develop a strain for production of a biopesticide and a global ingredient manufacturer to develop an enzyme for production of a large volume active pharmaceutical ingredient," continued Dr. Savile.
Third quarter and recent operational and financial highlights
Operational Highlights
Willow has advanced several of the programs included in its partnership with Laurus Labs and has recently delivered a strain for the first program to enable scaling and process development at Laurus. Willow and Laurus expect the first programs to reach commercial manufacture in 2025.
On September 5, 2024, the Company announced signing a commercial license and royalty agreement with Kalsec, Inc. Through this commercial license and royalty agreement, Willow expects to receive milestone payments for the first pilot and industrial batches followed by tiered royalty payments on net worldwide sales after launch. Willow expects R&D to be completed later this year or early next year and scaling to start in 2025.
On August 7, 2024, the Company announced that it signed a new fully funded strain engineering program with an innovative Ag-Biotech company in the biopesticides sector that is expected to generate over $2 million in R&D revenue in 2024 and 2025. The program is on track and has already achieved the first set of R&D milestones.
Company successfully completed its first program with a leading Active Pharmaceutical Ingredient ("API") manufacturer to develop a more sustainable, cost-effective manufacturing route for their largest product sold globally. In addition to the final R&D payment, the Company expects to receive additional milestone payments in 2025 for achieving the defined performance targets for the program.
On September 18, 2024, Willow announced a second program with the API manufacturer, to develop a more sustainable, cost-effective manufacturing route for a large volume ingredient used in a therapeutic with a global market in excess of $1 billion.
Based on current business development activities, Willow also anticipates signing 1-2 new partnerships in the fourth quarter of 2024.
Financial Highlights
Record revenue of over $1.7 million in Q3 and increasing revenue guidance for the year of over $4.5 million in 2024 from its existing partnerships. In addition, Willow has an active pipeline and anticipates signing 1-2 new programs before the end of 2024, which could further increase near term revenue.
On July 18, 2024, Willow announced that it closed a brokered private placement offering of 16,397,365 units of the Company at a price ...
