Willow Biosciences Inc (TSX:WLLW, OTCQB:CANSF) expects to sign a large strategic partnership over its anti-inflammatory medicine production in the second quarter.
This will be to “co-develop and commercialize the target corticosteroids that are expected to generate near-term research and development revenue and longer-term upside through commercial royalties,” CEO Chris Savile said in a statement accompanying its earnings on Monday.
“These new expected programs, combined with our existing collaborations, are expected to drive significant revenue growth during the year,” he added.
For the first quarter, Willow said cash burn had been reduced by 53%, setting the company on course to spend less than US$500,000 per month over the year.
Cash on hand sat at US$1.6 million as of the end of the quarter, with guidance for revenue to double over the year being held.
“The first quarter was marked by significant progress on our strategy to focus technical and business development efforts on our transformative BioOxi process for manufacturing corticosteroids,” Savile added.
This offers production of ingredients through biosynthesis, which sees multiple chemical steps removed, in turn saving costs.
Willow previously said this process would complement its precision fermentation FutureGrown platform, with investment from food ingredients firm Kalsec having been secured in February.
Agreements with biopharmaceutical firm Enterin and an API manufacturer, for over-the-counter medicines, were also signed over the first quarter, Willow highlighted.