Willow Biosciences Inc (TSX:WLLW, OTCQB:CANSF) has struck a commercial license and royalty agreement with Kalsec, a global producer of natural ingredients for the food and beverage industry.
It sets out the partnership, in which Kalsec will use Willow’s technology for the scale up and manufacturing of a natural ingredient to be used in a savory food product line.
The deal will yield to Willow milestone payments tied to the completion of research and development work by the end of 2024, followed by tiered royalty payments linked to worldwide net sales.
The new partner is to target a $200 million global market segment.
Kalsec will be responsible for all regulatory, manufacturing, and marketing costs.
“We are excited to see our technology platform continue to deliver with the transition of yet another research program to commercial reality,” Willow chief executive Dr Chris Savile said.
Dr Roger Nahas, Kalsec chief innovation officer, meanwhile, added: “We remain strongly committed to the sustainability and innovation benefits of bioconversion to generate affordable, effective, and safe natural solutions to savory foods’ toughest ingredient needs and challenges.”