Willow Biosciences Inc. (TSX:WLLW, OTCQB:CANSF) has entered a master services agreement with Kalsec Inc to develop and commercialize a precision fermentation production process for use in functional foods.
Kalamazoo, Michigan-based Kalsec produces advanced hops ingredients for the food and beverage industry. The agreement consists of research and development, and scale-up phases, with Willow generating revenues from research fees and milestone payments.
Willow CEO Dr Peter Seufer-Wasserthal said his company is pleased to add a new functional ingredient to its portfolio, highlighting the demand for its fully integrated FutureGrown technology platform.
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"We welcome the opportunity to advance Kalsec's range of natural, sustainable products while also evolving Willow's business strategy," Seufer-Wasserthal said in a statement.
The companies anticipate entering into a license agreement to share in the economics of the delivered product. The partnership will support greater adoption of precision fermentation technology for natural food and beverage products, according to Willow.
Calgary, Alberta-based Willow's FutureGrown technology is used for rapid strain engineering, and process development and offers scaled-up manufacturing for precision fermentation. Willow said its R&D pipeline now includes four functional ingredients using this technology.
Willow said it would focus on S. cerevisiae (brewer's yeast) for Kalsec. This yeast is an ideal host for expressing and engineering metabolic pathways to products of interest to the food and beverage market.
By working closely with their customers, the development team at Kalsec has identified multiple potential opportunities for innovation.
Kalsec executive vice president of Global R&D Dr Roger Nahas said he looks forward to working with Willow, with the goal of introducing new fermented products.
"Kalsec continually researches new technologies to enhance sustainability and efficiency in our production capabilities and enable the maturation of markets for natural products," Nahas said in a statement.
Contact the author at susie@proactiveinvestors.com