Willow Biosciences Inc. (TSX: WLLW) (OTCQB:CANSF) reported its financial and operating results on Monday for the three months ended June 30, 2024, reporting significantly higher revenue and reduced costs.
"The second quarter was marked by significant pipeline and revenue growth with the addition of the Laurus Labs strategic partnership that includes seven high-value APIs," Dr. Chris Savile, Willow's president and CEO said. "In addition, the Company further strengthened its balance sheet by launching a private placement in June, which closed after the end of the quarter, and continued on its path to further increase efficiency and reduce costs."
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Willow is a precision fermentation company that uses advanced science and technology to produce natural ingredients for the health and wellness, food and beverage and personal care markets. It is known for the industrial manufacturing of bioproducts in the cannabinoid space and for using synthetic biology to manufacture compounds typically derived from cannabis, such as cannabigerol.
Q2 2024 Financial And Business Highlights
- Ended the quarter with roughly $0.7 million in cash as of June 30, 2024, with another $0.5 million in restricted cash that became unrestricted after the end of the quarter.
- Revenue totaled $1 million during the quarter, representing a new record for the company and an increase of roughly 660% year-over-year.
- Continued to transition to a more efficient company with a total used in operating activities of $733 000, a cash burn of less than $250 000 per month.
- Net loss of $1.7 million due to continuous investing in research and development, as reported by Green Market Report.
- In the meantime, Willow announced a multi-product development and licensing partnership with Laurus in May. Laurus is a research-driven pharmaceutical and biotechnology company with a $3.9 billion market cap. It serves global pharmaceutical companies and offers CDMO services.
- As part of that deal, Willow expects to earn significant annual revenues in research and development and royalties, including $4 million in guaranteed research and development payments in the first year.
Outlook
The company said fiscal year 2024 revenues would exceed $4 million, representing an increase of almost 350% over 2023.
This revenue expectation for the 2024 fiscal year is forecasted to be driven by existing programs.
In addition to the new programs that have already been announced so far in 2024, the company expects to add at least one more fully funded, partnered program as well as one new internal program before the end of 2024.
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CANSF Price Action
Willow Biosciences' shares traded 3.94% higher at $0.066 per share at the time of writing on Monday morning.