Willow Biosciences Inc (TSX:WLLW, OTCQB:CANSF) reported record quarterly revenue of C$674,000 for the third quarter, up from C$49,000 in the year-ago quarter, and revenue for the first nine months of 2023 of C$1.08 million.
The biotechnology company said that its efficiency initiatives led to it reducing its total cash burn to below C$1.5 million for 3Q.
It exited the quarter with cash of C$4 million and receivables of more than C$6 million.
It narrowed its net loss from C$3.99 million or C$0.03 per share in 3Q 2022 to C$2.23 million or a loss per share of C$0.02.
"The third quarter was marked by significant progress on our strategy to sustainably grow the business by increasing the number of partnered-funded opportunities while reducing our operational expenses,” Willow CEO Dr. Chris Savile said in a statement.
“The excitement in the industry around our BioOxi program and its potential to transform the multi-billion dollar steroid market has led to negotiations on multiple new programs that are expected to close in the first half of 2024.”
Savile said these programs are expected to generate both near-term R&D revenue, including up-front cash, and longer-term upside for Willow through milestones, royalties, and ingredient supply without the need for significant internal investment.
The company said as its programs progress, it continues to expect strong R&D revenue growth in the fourth quarter and first commercial revenues as early as the first quarter of 2024.
It also anticipates executing a partnership in the first half of 2024 which will include a multi-million dollar upfront payment, plus R&D and milestone payments and future commercial revenues from license agreements, royalties and/or profit-sharing agreements.
As such, it expects its revenue to accelerate for the remainder of 2023 and in 2024 and, combined with its reduced cash burn, it puts the company on track to be cash flow positive as early as 2025.
Willow's shares moved higher following its results, up 7.1% at C$0.08.
- Updated with share price movement -
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