Willow Biosciences Inc (TSX:WLLW, OTCQB:CANSF) said it has signed a commercial agreement with Sandhill One LLC for a process under development that represents a step-change in the production of ursodeoxycholic acid (UDCA).
UCDA is a key ingredient for treating cholestatic liver disease and gallstone conditions. It is also a crucial intermediate for the production of tauroursodeoxycholic acid, a combination therapy recently approved in Canada and the US for treating amyotrophic lateral sclerosis.
Willow noted that its BioOxi bio-oxidation platform has been applied to the development and its R&D team has found a more sustainable and cost-effective way to produce UDCA that does not rely on animal-sourced raw materials, unlike most current manufacturing of UDCA and other cholic acids.
Willow expects that, upon completion of its development project with Sandhill, it may receive a significant portion of Sandhill's end-market revenues, following receipt of milestone payments under the agreement.
In a statement, Dr Chris Savile, Willow's president and CEO noted that the royalty-bearing agreement is "more attractive than Willow originally expected and highlights the company's rapid steps to bring in nearer-term revenue".
Dr J. Gregory Reid, chief scientific officer of Sandhill, said that the agreement reflects Willow's rapid progress in successfully executing the development phases of the project, and the companies are looking forward to broadening the availability of sustainably sourced UDCA to support better health for people and the planet.
Willow Biosciences develops and produces precision fermented functional ingredients for the health and wellness, food and beverage, and personal care markets using its FutureGrown biotechnology platform, which allows large-scale production with sustainability at its core.
Contact the author at jon.hopkins@proactiveinvestors.com