CALGARY,
AB AND MOUNTAIN VIEW,
Calif., Dec. 14, 2022 /CNW/ - Willow
Biosciences Inc. ("Willow" or the "Company")
(TSX: WLLW) (OTCQB: CANSF), a leading biotechnology company
focused on revolutionizing industrial manufacturing of pure,
consistent and sustainable functional ingredients announced today a
recap of key milestones the Company has successfully achieved in
2022, as well as its business outlook and key targeted milestones
anticipated for 2023 to expand growth.
Along with previously announced actions to optimize the business
for market success while reducing cash burn and protecting its
balance sheet, the Company has continued to successfully execute on
its strategic goals and milestones toward year-end 2022.
Milestones Achieved During
2022
- New cannabigerol ("CBG") downstream process ("DSP") that has
been optimized for increased yield and efficiency was fully tech
transferred to a large contract manufacturing organization ("CMO")
for producing commercial material to sell to existing and new
customers
- Signed first collaborative deal outside of cannabis for
production of a large volume ingredient
- Second collaboration announced with Kalsec Inc., a leading
global producer of natural taste and sensory, food protection,
colors and advanced hops ingredients for the food and beverage
industry
- Expanded its wholly owned product portfolio by completing proof
of concept work on new functional ingredient, Astaxanthin.
Astaxanthin is a red pigment and powerful antioxidant with a high
price point and market opportunity estimated at $750 million in 2022, growing to greater than
$1 billion in 2027*. Currently,
>90% of Astaxanthin is produced synthetically.
- To better control its cannabinoids market opportunity, recently
terminated its Joint Development Agreement for CBD with Noramco,
giving Willow full control over its future for CBD, while owning
all the IP the Company generates.
*Per third-party market research reports from Transparency
Market Research, Global Market Insights, IMARC, and Markets and
Markets.
With this executional foundation in place, there is significant
market potential for both additional partnered projects and those
Willow may pursue on its own. These core capabilities can
accelerate time to market in helping customers rapidly adapt to
supply chain issues caused by shortages, regulatory changes, end
market demand by consumers for products better supporting the
environment, and overall sustainability goals. Added to those
benefits is the fact that the Company's expert precision
fermentation ability to develop ingredients can lower cost relative
to traditional sourcing from plant, animal or chemistry and help
foster more rapid product innovation for companies in the
competitive markets they serve. With its FutureGrown™ technology
platform and talented people to be successful in broader and larger
markets, the Company is well positioned to pursue its next targeted
milestones for 2023 with a keen focus on near-term revenue
generation.
Milestones Targeted For
2023
- First large-scale batch of CBG produced at new CMO for existing
and new customers
- Based on existing data, expect attaining independent conclusion
of generally recognized as safe ("GRAS") for Willow's CBG
- Anticipated milestone payments for technology transfer of first
two partnered projects
- At least one new partnered development program for a functional
ingredient
- Astaxanthin strain wholly owned by Willow expected to be
productive enough to start downstream process development
- With expected ongoing success of the aforementioned 2022
milestones and the anticipation that the Company will successfully
execute on those targeted for 2023, Willow currently expects rather
significant revenue growth over 2022 along with a demonstrable
reduction in cash burn toward its goal of a noted improvement in
bottom-line financial results.
"We are very proud of what our team has achieved during 2022 and
truly excited by the opportunity that lays before us in 2023 to
highlight the utility of our platform in meeting time to market,
cost and sustainable supply chain needs for our customers' and our
own endeavors through precision fermentation technology," said Dr.
Peter Seufer-Wasserthal, Willow's President and CEO. "With the
steps we have taken we believe we are in the strongest position
ever to wield our core capabilities and talented R&D team to
successfully tackle new challenges, unlock shareholder value and do
what we can to support a healthier planet using clean technology to
solve real world problems."
About Willow Biosciences
Inc.
Willow develops and produces precision fermented functional
ingredients for the health and wellness, food and beverage and
personal care markets. Willow's FutureGrownTM
biotechnology platform allows large-scale production with
sustainability at its core. Willow's R&D team has a proven
track record of developing and commercializing bio-based
manufacturing processes and products to benefit our B2B partners
and their customers. For more information, visit
www.willowbio.com.
Forward-Looking
Statements
This news release may include forward-looking statements
including opinions, assumptions, estimates and the Company's
assessment of future plans and operations, and, more particularly,
statements concerning: the business plan and strategy of the
Company, including becoming a leader in precision fermentation,
research and production of functional ingredients; near term
revenue generation and burn rate reductions; growth expansion and
the achievement of targeted milestones in 2023; the ability to
accommodate new programs and to expand capabilities; the continued
development of Willow's FutureGrown™ CBG; the demand and market
size potential of the synthetic ingredients industry; and the
ability to capture value as the market develops. When used in this
news release, the words "will," "anticipate," "believe,"
"estimate," "expect," "intent," "may," "project," "should," and
similar expressions are intended to be among the statements that
identify forward-looking statements. The forward-looking statements
are founded on the basis of expectations and assumptions made by
the Company which include, but are not limited to: the success of
Willow's strategic partnerships, including the development of
future strategic partnerships; the financial strength of the
Company; the ability of the Company to fund its business plan using
cash on hand and existing resources; the market for Willow's
products; the ability of the Company to obtain and retain
applicable licences; the ability of the Company to obtain suitable
manufacturing partners and other strategic relationships; and the
successful implementation of Willow's commercialization and
production strategy, generally. Forward-looking statements are
subject to a wide range of risks and uncertainties, and although
the Company believes that the expectations represented by such
forward-looking statements are reasonable, there can be no
assurance that such expectations will be realized. Any number of
important factors could cause actual results biotechnology industry
in general; the success of the Company's research and development
strategies; infringement on intellectual property; failure to
benefit from partnerships or successfully integrate acquisitions;
actions and initiatives of federal and provincial governments and
changes to government policies and the execution and impact of
these actions, initiatives and policies; import/export and research
restrictions for cannabinoid-based operations; the size of the
medical-use and adult-use cannabinoid market; competition from
other industry participants; adverse U.S., Canadian and global
economic conditions; adverse global events and public-health
crises, including the current COVID-19 outbreak; failure to comply
with certain regulations; departure of key management personnel or
inability to attract and retain talent; and other factors more
fully described from time to time in the reports and filings made
by the Company with securities regulatory authorities. Please refer
to the Company's most recent annual information form and
management's discussion and analysis for additional risk factors
relating to Willow, which can be accessed either on Willow's
website at www.willowbio.com or under the Company's profile on
www.sedar.com.
Any financial outlook and future-oriented financial information
contained in this document regarding prospective financial
performance, financial position, cash balances, balance sheet,
costs or revenue is based on assumptions about future events,
including economic conditions and proposed courses of action based
on management's assessment of the relevant information that is
currently available. Projected operational information contains
forward-looking information and is based on a number of material
assumptions and factors, as are set out above. These projections
may also be considered to contain future-oriented financial
information or a financial outlook. The actual results of the
Company's operations for any period will likely vary from the
amounts set forth in these projections and such variations may be
material. Actual results will vary from projected results. Readers
are cautioned that any such financial outlook and future-oriented
financial information contained herein should not be used for
purposes other than those for which it is disclosed herein.
The forward-looking statements contained in this news release
are made as of the date hereof and the Company does not undertake
any obligation to update publicly or to revise any of the included
forward-looking statements, except as required by applicable law.
The forward-looking statements contained herein are expressly
qualified by this cautionary statement.
Certain information contained herein has been obtained from
published sources prepared by independent industry analysts and
third-party sources (including industry publications, surveys and
forecasts). While such information is believed to be reliable for
the purposes used herein, Willow does not assume any responsibility
for the accuracy of such information. The sources cited in this
news release have not consented to the inclusion of any data from
their reports, nor has Willow sought their consent.
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SOURCE Willow Biosciences Inc.