Willow Biosciences Inc. (TSX: WLLW) (OTCQB: CANSF) posted its financial results for the year ending Dec. 31, 2023, showing a completed reorganization during the year as it focuses on commercializing its corticosteroid programs.
Willow reported record revenue of $1.2 million in 2023, a 43% increase from 2022. However, the company still posted a net loss of $13 million, an improvement from the $14.7 million loss in the previous year. Four new partnerships are expected to contribute to growth in 2024, management said.
“Fiscal 2023 was a transformative year for Willow as we continued to take significant steps to position the company for nearer term revenue creation, expanded our product pipeline, reduced our cash burn and moved all operations to a new lab in Sunnyvale, California,” CEO and president Chris Savile said in a statement.
While it wasn’t specifically mentioned, one focus area Willow is known for is the industrial manufacturing of bioproducts in the cannabinoid space, using synthetic biology to produce compounds typically derived from cannabis, such as cannabigerol.
The approach is distinct from traditional cannabis cultivation in that it involves using yeast fermentation to produce pharmaceutical-grade cannabinoids from the plant.
However, company mainly made meaningful progress on its corticosteroid manufacturing platform, successfully demonstrating proof of concept for several large-volume corticosteroids, including hydrocortisone, prednisolone, and prednisone. Willow also completed a non-brokered financing round, raising $800,000 with significant participation from company insiders in the form of convertible debentures and warrants.
Throughout the year, Willow Biosciences announced collaborations with various industry partners. The company is working with global pharmaceutical ingredients maker, Suanfarma, to develop a large-volume anti-infective active pharmaceutical ingredient.
Willow also advanced an existing partnership and a new partnership with Kalsec to develop natural ingredients for the food and beverage sectors. Additionally, the company progressed its collaboration with an undisclosed leading biopharmaceutical company to develop advanced intermediates and active pharmaceutical ingredients.
For 2024, Willow expects significant revenue growth, reduced cash burn, and improved bottom-line financial results. The company has set several milestones for the coming year, including:
- Executing commercial agreements on existing programs, with at least one agreement anticipated in the first half of 2024 and additional agreements in the second half of the year.
- Transitioning R&D programs to commercial revenue, with first commercial revenues expected from at least two products.
- Increasing full-year R&D revenues by over 100% compared to 2023, alongside the commencement of commercial stage revenue on multiple programs.
- Closing at least one partnership agreement on its corticosteroid programs, either a large strategic partnership or multiple product-specific partnerships.
- Announcing two or more additional partnerships in the first half of 2024, with a focus on innovator-owned targets, and securing additional partnerships in the second half of the year.
- Advancing its core technology platform by developing generative AI-powered enzyme discovery and design capabilities, coupled with proprietary high-throughput gene editing tools.
