Willow Biosciences Inc. (TSX:WLLW, OTCQB:CANSF) said it has completed proof of concept work, and development is currently underway to establish a commercial production process for pure, consistent and sustainable astaxanthin, a powerful, naturally occurring, antioxidant compound.
"We are pleased to add astaxanthin as the next functional ingredient to our product portfolio,” said Dr Peter Seufer-Wasserthal, Willow's interim president and CEO in a statement.
“Astaxanthin meets all the criteria for development using our fully integrated FutureGrown technology platform. It has a large addressable market, with the majority of product currently supplied being chemically produced using a petroleum feedstock,” he added.
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Astaxanthin is a red pigment, belonging to a group of chemicals known as carotenoids. In addition to its pigmentation properties, it is one of nature's most powerful antioxidants. It occurs naturally in algae and is used as an animal feed additive, enhancing the red or pink color in trout, salmon, shrimp, lobster and other seafood, and the yolk color in eggs.
Astaxanthin is an attractive functional ingredient that has a large, established market, estimated to be about $750 million in 2022, with a forecast compound annual growth rate of 8%, and projected to exceed $1 billion by 2027, Willow noted.
The largest opportunity is for animal feed, which represents the majority of sales for astaxanthin globally, the company said.
Utilizing its fully integrated FutureGrown technology platform and strains previously developed on its cannabinoid program, Willow is developing a high-purity, sustainably-produced natural astaxanthin using yeast that is bio-identical to that found naturally, yet expected to be sufficiently cost-effective to compete with chemically-produced products.
Willow is confident its FutureGrown Astaxanthin is suitable for the food and nutrition, and cosmetics markets, which are currently served by low-purity, high-cost material produced using algae.
“Willow offering a natural, clean, sustainably-produced product allows not only penetration of the current large volume market, but expansion of the market for human health and wellness, where there is currently no high-purity, cost-effective bio-based product available," CEO Seufer-Wasserthal added.
Willow Biosciences develops and produces precision fermented functional ingredients for the health and wellness, food and beverage and personal care markets. The company’s FutureGrown biotechnology platform allows large-scale production, with sustainability at its core.
Contact the author at jon.hopkins@proactiveinvestors.com