CALGARY,
AB and MOUNTAIN VIEW,
Calif, Dec. 7, 2022 /CNW/ - Willow Biosciences
Inc. ("Willow") (TSX: WLLW) (OTCQB: CANSF), a leading
biotechnology company focused on revolutionizing industrial
manufacturing of pure, consistent and sustainable functional
ingredients announced today that it has taken additional steps to
focus on near-term revenue generation, protect its balance sheet
and reduce its cash burn.
Since the early part of the year, the Company has reviewed its
market opportunities and its portfolio, using a rigorous evaluation
process that has taken into consideration the challenges in the
current operating environment. As a result of this review, the
Company has taken the following proactive actions:
- The Company's business development focus has shifted to
near-term revenue generating programs. On May 31, 2022, the Company announced its first
partnered program for a pharmaceutical project that has already
generated revenue for the Company. A second program was announced
in November with Kalsec, a leading global producer of natural taste
and sensory, food protection, colors and advanced hops ingredients
for the food and beverage industry. The terms for both programs
include near-term research and development revenue and milestone
payments with the potential for further upside after
commercialization. Furthermore, the Company is optimistic that it
will be able to announce at least one new additional program in
2023.
- The Company consolidated its R&D operations into one lab,
located in Mountain View,
California and is pleased to report that key personnel have
relocated to the Mountain View
site and the transfer of operations was completed with minimal
downtime for operations. In addition, Willow was able to ship and
repurpose a significant portion of the existing equipment from its
prior Burnaby, British Columbia
lab location to the Mountain View
facility, thereby reducing the overall costs by centralizing lab
activities. The lower overhead cost associated with operating a
single lab versus two labs is expected to reduce the Company's burn
rate.
- The Company remains optimistic on the future opportunity for
CBG and other cannabinoids and will be well-positioned to capture
that value as the markets develop, but with its new focus on other
ingredients will not invest in developing new products without
partner funding.
- Willow outsourced its internal Quality Control analytical
testing and release requirements, eliminating a number of full-time
employee positions in Burnaby.
- The above-mentioned actions combined with an extensive review
of the Company's workflows resulted in a total reduction of
non-research and development workforce of eight persons, including
four management positions, resulting in a current total headcount
of 31 of which 77% are in R&D and operations. Willow continues
its focus on operating in a lean fashion while maintaining
sufficient R&D and operational resources to execute on its
partnered programs and continuing to develop its own product
portfolio.
- With no debt and a significant cash balance of $18.4 million as of September 30, 2022, the Company intends to
approve a fully funded budget which covers the entirety of
2023.
"By optimizing our business and reducing our cash burn we are in
a strong position to pursue a strategic focus on development
programs that leverage our precision fermentation technology
platform for near-term revenue generation and market success," said
Dr. Peter Seufer-Wasserthal, Willow's President and CEO. "Looking
forward to 2023, we are excited about a number of new options we
see to utilize the platform more broadly within the health and
wellness, food and beverage and personal care markets, while
working hard to realize shareholder value from our existing and
future research and development programs and sale of functional
ingredients to our customers."
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; the ability to
accommodate new programs and 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; and the intention
to announce a fully-funded 2023 budget. 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, 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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/willow-further-optimizes-its-business-to-focus-on-near-term-revenue-generation-and-reduce-cash-burn-301696532.html
SOURCE Willow Biosciences Inc.