Willow Biosciences Inc (TSX:WLLW, OTCQB:CANSF) has provided shareholders with the business outlook and key targeted milestones it anticipates for 2023 to expand growth, as well as a recap of key milestones the company successfully achieved in 2022.
Along with previously announced actions to optimize the business for market success while reducing cash burn and protecting its balance sheet, the company said it has continued to successfully execute on its strategic goals and milestones toward year-end 2022.
"We are very proud of what our team has achieved during 2022 and truly excited by the opportunity that lays before us in 2023 to highlight the utility of our platform in meeting time to market, cost and sustainable supply chain needs for our customers' and our own endeavors through precision fermentation technology," said Dr Peter Seufer-Wasserthal, Willow's president and CEO in a statement.
READ: Willow Biosciences takes further steps to focus on near-term revenue generation and protect balance sheet
"With the steps we have taken we believe we are in the strongest position ever to wield our core capabilities and talented R&D team to successfully tackle new challenges, unlock shareholder value and do what we can to support a healthier planet using clean technology to solve real-world problems," he added.
Milestones Achieved During 2022:
- New cannabigerol (CBG) downstream process (DSP) that has been optimized for increased yield and efficiency was fully tech transferred to a large contract manufacturing organization (CMO) for producing commercial material to sell to existing and new customers;
- Signed first collaborative deal outside of cannabis for production of a large volume ingredient;
- Second collaboration announced with Kalsec Inc., a leading global producer of natural taste and sensory, food protection, colors and advanced hops ingredients for the food and beverage industry;
- Expanded its wholly-owned product portfolio by completing proof of concept work on new functional ingredient, Astaxanthin. Astaxanthin is a red pigment and powerful antioxidant with a high price point and market opportunity estimated at $750 million in 2022, growing to greater than $1 billion in 2027. Currently, more than 90% of Astaxanthin is produced synthetically;
- To better control its cannabinoids (CBD) market opportunity, recently terminated its Joint Development Agreement for CBD with Noramco, giving Willow full control over its future for CBD, while owning all the IP the company generates.
With this executional foundation in place, the company said there is significant market potential for both additional partnered projects and those Willow may pursue on its own.
These core capabilities can accelerate time to market in helping customers rapidly adapt to supply chain issues caused by shortages, regulatory changes, end market demand by consumers for products better supporting the environment, and overall sustainability goals.
Added to those benefits is the fact that the company's expert precision fermentation ability to develop ingredients can lower cost relative to traditional sourcing from plant, animal or chemistry and help foster more rapid product innovation for companies in the competitive markets they serve.
With its FutureGrown technology platform and talented people to be successful in broader and larger markets, the company said it is well positioned to pursue its next targeted milestones for 2023 with a keen focus on near-term revenue generation.
Milestones Targeted For 2023:
- First large-scale batch of CBG produced at new CMO for existing and new customers;
- Based on existing data, expect attaining independent conclusion of generally recognized as safe (GRAS) for Willow's CBG;
- Anticipated milestone payments for technology transfer of first two partnered projects;
- At least one new partnered development program for a functional ingredient
- Astaxanthin strain wholly owned by Willow expected to be productive enough to start downstream process development.
With the expected ongoing success of the aforementioned 2022 milestones and the anticipation that the company will successfully execute on those targeted for 2023, Willow said it currently expects rather significant revenue growth over 2022 along with a demonstrable reduction in cash burn toward its goal of a noted improvement in bottom-line financial results.
Willow develops and produces precision fermented functional ingredients for the health and wellness, food and beverage and personal care markets. Willow's FutureGrown biotechnology platform allows 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.
Contact the author at jon.hopkins@proactiveinvestors.com