Willow Biosciences Inc (TSX:WLLW, OTCQB:CANSF) announced a multi-product development and licensing partnership with Laurus Labs for manufacturing Active Pharmaceutical Ingredients (APIs).
Laurus is a leading research-driven pharmaceutical and biotechnology company which offers contract development and manufacturing organization (CDMO) services.
Through the partnership, Willow will leverage its AI-driven bioengineering platform and experience in enzyme, strain and process engineering to deliver biobased processes for APIs with existing markets, for large-scale manufacturing, sales, and distribution at Laurus.
It includes an initial seven advanced intermediates and APIs, including Willow BioOxi-based corticosteroid programs.
Willow said that these programs will reach the first commercial manufacturer in 2025.
The company expects to earn “significant” annual revenues, including $4 million in guaranteed research and development payments in the first year.
Upon commercialization of the APIs, Willow will receive an annual royalty based on global sales.
The deal marks the largest collaboration agreement Willow has signed to date, the company highlighted.
"We are excited to be partnering with Laurus Labs, one of the most respected and established pharmaceutical ingredient manufacturers in the world,” Willow CEO Dr Chris Savile said in a statement.
“This strategic partnership is the culmination of Willow's new focus on pharmaceutical ingredients and investment over the past two years. We are proud our technology platform is being integrated with Laurus to support their commercialization of more sustainable, cost-effective products."
Laurus Labs CEO Dr Satyanarayana Chava added: “Willow has demonstrated through its bioengineering technology platform a unique capability to significantly reduce the cost of API production while enabling greater product availability. We look forward to a long and successful partnership, which we believe will further strengthen Laurus' strong reputation for market innovation."