Willow Biosciences Inc (TSX:WLLW, OTCQB:CANSF) has announced a follow-on engagement with Sandhill One LLC for the next phase in optimizing a proprietary enzyme vital to the development of a large-volume Active Pharmaceutical Ingredient (API) used in nutraceutical and pharmaceutical products.
The company said this represents the continuation of the first phase of the project which was announced on May 31, 2022.
"We are very pleased that following our success on the first phase of development, our partner has seen the tremendous value Willow can provide in leveraging its precision fermentation technology to foster cost-effective innovation in the development of APIs," Dr Peter Seufer-Wasserthal, Willow's president and CEO said in a statement.
READ: Willow Biosciences gives business outlook, key targeted milestones for 2023 to expand growth, recaps 2022 key milestones
"We are excited to start off the year with this new agreement, which further illustrates our continued portfolio diversification beyond cannabinoids and represents early progress against our stated goals for 2023 to expand our growth with a keen focus on near-term revenue generation," he added.
Sandhill is partnered with a large-cap, multi-national healthcare company targeting the manufacture of large-volume API, ursodeoxycholic acid (UDCA), the company said.
UDCA is used as a medication for the management and treatment of cholestatic liver disease and gallstone conditions, and as an important intermediate for production of tauroursodeoxycholic acid (TUDCA), a key API in a combination therapy recently approved in Canada and the United States for treatment of amyotrophic lateral sclerosis (ALS), it explained.
The process under development between the parties represents a step-change in the production of UDCA. Unlike most of the current manufacturing, it will not rely on animal-sourced raw materials. It is also expected to be lower in cost.
In this next phase of development, the company anticipates several hundred thousand US dollars in research fees, along with a milestone payment later this year for initial production batches.
Upon successful completion, it is expected that Willow's proprietary, optimized enzyme will be taken toward commercialization for the end market active pharmaceutical ingredients, where Willow will receive additional milestone and production-based royalty payments, the company said.
Willow Biosciences 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.
Contact the author at jon.hopkins@proactiveinvestors.com