Willow Biosciences Inc. (TSX:WLLW, OTCQB:CANSF) has released its results for the three and nine months ended September 30, 2022, which showed it made significant progress in its operational platform, leadership, and has strong liquidity.
The company also confirmed the appointment of Dr Peter Seufer-Wasserthal as its president and CEO, effective November 3, 2022. On July 18, 2022, Willow had appointed Dr Seufer-Wasserthal as interim president and CEO effective July 17, 2022, following Trevor Peters' retirement from the two positions. Peters continues to serve as a director of the company.
Willow noted that Dr Seufer-Wasserthal brings extensive experience in biotech, pharma, nutrition, and consumer care to the company and has already advanced several partnership discussions in the food and nutrition sectors. He will continue to build and lead the organization needed to successfully execute on the company's mission and will continue to serve as chairman of the board of the company.
"The third quarter saw us take another step forward in becoming a leader in precision fermentation," said Dr Seufer-Wasserthal in the results statement. "Our FutureGrown platform technology has allowed [us] to secure partnerships and identify attractive functional ingredient opportunities leveraging off our initial work done on cannabinoids, and we are excited to continue to de-risk our portfolio to create value for our stakeholders."
WATCH: Willow Biosciences announces Astaxanthin will be company’s next functional ingredient
So far this year, the company has announced its first partnered, non-cannabinoid program, and its first new non-cannabinoid functional ingredient, Astaxanthin. Willow said it is excited to continue to be adding partnerships and products, expanding its platform and de-risking its portfolio.
Willow noted that it ended the third quarter in a strong financial position, with around $18.7 million in working capital and $18.4 million of cash on hand.
Third quarter highlights:
- On 31 August 2022, Willow provided an update on Generally Recognized as Safe (GRAS) status for its FutureGrown cannabigerol (CBG) product.
- It has successfully completed the Stage 1 toxicological assessment for oral product applications and anticipates initiating its Stage 2 pivotal toxicological assessment in Q3 2022 and attaining an independent conclusion of GRAS in the first half of 2023.
- Subsequent to the quarter, on 12 October 2022, Willow completed proof of concept work on a new functional ingredient Astaxanthin. 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. Development is currently underway to establish a commercial production process for pure, consistent and sustainable FutureGrown Astaxanthin.
Willow said it is positioned to become a leader in precision fermentation by capturing key intellectual property around what the company anticipates being the most cost-effective methods to produce highly pure ingredients.
The company's operational capabilities, along with its strategic partners, span the entire product development pathway, and Willow's integrated R&D team in California has the full capabilities to deliver at all stages of the development cycle. Its established technology, capabilities, and manufacturing network can now enable bio-based production for a diverse set of industries.
While the market for bio-synthetically produced cannabinoids has not materialized to the extent originally anticipated, Willow said it remains optimistic about the long-term market potential for these ingredients and continues to optimize its production process.
As the market for bio-synthetically produced cannabinoids continues to develop, Willow added, it will utilize its proven FutureGrown platform to partner with companies in the personal care, food and beverage, and pharmaceutical markets, providing access to pure, consistent and sustainable functional ingredients.
Willow develops and produces high-purity ingredients for the personal care, food and beverage, and pharmaceutical markets.
Contact the author at jon.hopkins@proactiveinvestors.com