After a successful feasibility study, Company
expands into the high growth biopesticide sector with a funded
research and development program to produce valuable natural
ingredients using its precision fermentation platform
Program expected to generate over $2 million in revenue in first year with
guaranteed payments of over $1
million in 2024
Company now anticipates revenue of over
$4 million in 2024 on existing
programs
SUNNYVALE, Calif., Aug. 7, 2024 /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 ingredients, announces that it has
signed a fully funded strain engineering program (the
"Program") with an innovative Ag-Biotech company in the
biopesticides sector.
"This is truly an exciting partnership for Willow, as it not
only comes with significant near-term research and development and
future commercial milestone payments, but also extends our
technology and capabilities into the high growth biopesticide
sector," said Dr. Chris Savile,
Willow's President & CEO. "I am once again impressed with our
team and technology platform for quickly demonstrating
proof-of-concept and progressing to a full development
partnership," continued Dr. Savile.
On June 26, 2024, the Company
announced a feasibility program with an innovative Ag-Biotech
company in the biopesticides sector. Today, the Company announced
that after successfully completing the feasibility phase, it has
now signed a funded research and development agreement (the
"Agreement"). The Program is expected to take at least 12
months to complete, with guaranteed research and development
revenue for Willow of $1.25 million
within the first 6 months and an additional $1 million in research and development revenue in
the following six months, with an option to extend, should both
parties decide to continue. If successful, upon completion of the
Program, the Company will receive significant commercial milestone
payments, which are tiered based on the performance of the new
strain. The research and development required to complete the
Program will be completed using existing facilities, equipment and
employees and will require minimal additional costs and
resources.
Biochemical pesticides are naturally occurring substances that
control pests through non-toxic, targeted mechanisms resulting in
enhanced crop productions. According to Fortune Business Insights
(fortunebusinessinsights.com, July 22,
2024), the global biopesticides market size is estimated to
be $US 8.7 billion in 2024 with a
compound annual growth rate of 15.9%. Biopesticides are typically
safer and more environmentally friendly than conventional
pesticides but can be challenging to produce at large scale.
About Willow Biosciences Inc.
Willow develops biobased processes to manufacture ingredients
for pharmaceutical, food and beverage and consumer markets.
Willow's FutureGrown™ and BioOxi™ platforms enable 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.
FutureGrown™ and BioOxi™ are registered trademarks of Willow
Biosciences Inc.
READER ADVISORIES
Forward-Looking Statements
This news release may include forward-looking statements
including opinions, assumptions, estimates and the Company's
assessment of future plans, platforms, operations and expansion,
and, more particularly, statements concerning: the completion of
the Program in accordance with the terms of the Agreement, and
receipt of funding relating thereto;; Willow's ability to
successfully complete the Program and achieve the commercial
milestones relating thereto; anticipated revenues, generally and
from the Program; expansion into the high growth biopesticide
sector pursuant to a new partnered program; the demand and market
size potential of the synthetic ingredients and biopesticides
industries; the growth rate of the biochemical pesticides; and the
business plan of the Company, generally. When used in this news
release, the words "will," "anticipate," "believe," "estimate,"
"expect," "intent," "may," "project," "should," and similar
expressions (or variations or negatives thereof) 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 Program; 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
biochemical pesticides market; 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 to differ materially from those in the forward-looking
statements, including, but not limited to: risks of the
biotechnology industry in general; the success of the Company's
research and development strategies; the Company's ability to
complete the Program as set out in the Agreement; infringement on
intellectual property; failure to benefit from partnerships or
successfully integrate acquisitions; actions and initiatives of
federal, state and provincial governments and changes to government
policies and the execution and impact of these actions, initiatives
and policies; competition from other industry participants; adverse
U.S., Canadian and global economic conditions; adverse global
events and public-health crises; 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.sedarplus.ca.
Any financial outlook and future-oriented financial information
contained in this document regarding prospective financial
performance, financial position, cash balances or revenue,
including the anticipated receipt of revenue of over $4.0 million in for 2024 on existing programs,
including $1.25 million in guaranteed
research & development payments in the first six months and an
additional $1 million in the
following six months under the collaboration agreement 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.
Financial information in this news release is expressed in
Canadian dollars.
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.
Third Party Information
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.
