Willow Biosciences Inc (TSX:WLLW, OTCQB:CANSF) announced it has engaged an advisor to assist it with a review of opportunities to enhance value for its shareholders and unlock its intellectual property portfolio.
The biotech company said the move follows its transition to the San Francisco Bay Area and its commercial focus on its BioOxi platform as part of targeted alignment on nearer-term and larger revenue opportunities.
Willow noted that its commercial focus on BioOxi is succeeding, with the company demonstrating executional success on commercial programs, including four new programs related to the bio-oxidation platform technology launched in April 2023. It is now primarily focusing on partner-funded enzyme engineering engagements.
It added that this has enabled it to continue its cost reduction efforts while maximizing a faster path to nearer-term and potentially larger revenue opportunities, relative to its legacy strain engineering business.
The new advisor will support Willow’s review of potential value-creating actions, including amongst other possible activities, strategic investments, collaborations, licensing, joint ventures, or a company sale or merger, should this maximize value for shareholders.
"In recent quarters we have successfully expanded our commercial portfolio, positioned Willow for significant revenue growth and consolidated our facilities in the San Francisco Bay Area to optimize operating efficiencies and lower operating expenses and cash burn," Willow president and CEO Dr Chris Savile said in a statement.
"With this transition and based on our growth trajectory, we believe now is an ideal time to explore the above-mentioned review to potentially unlock value for the company and its stakeholders while continuing our mission to help promote product innovation coupled with sustainable means of production.”
Sunnyvale facility
Following the move to the San Francisco Bay Area, Willow said it has consolidated its operations into a single, cost-efficient facility in Sunnyvale, which it said can accommodate future growth. The new laboratory space provides sufficient opportunity to expand as it continues to sign new collaborations but remains cost-effective compared to its previous locations.
The company said it has also reduced its board of directors from nine to five members. Chairman and founder Trevor Peters and directors Barbara Munroe, Dr Fotis Kalantzis and Dr Peter Seufer-Wasserthal stepped down from the board effective August 24. Dr Jim Lalonde succeeds Peters as chairman, while other remaining board members include president and CEO Dr Chris Savile, Al Foreman, Raffi Asadorian and Don Archibald.
"We are grateful to our board members, both those stepping down and those remaining, for their guidance and leadership in helping us execute these changes to better position Willow for success while protecting our balance sheet,” Saville added.
Contact the author at stephen.gunnion@proactiveinvestors.com