Willow Biosciences Inc. (WLLW, CANSF) announced impressive financial and operating results for the three months ending June 30, 2024, highlighting significant revenue growth and cost reduction. This positive performance was driven by strategic partnerships and advancements in its product pipeline.
Dr. Chris Savile, Willow’s president and CEO, emphasized the significance of the second quarter, stating, “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.” This partnership with Laurus Labs, a research-driven pharmaceutical and biotechnology company, is expected to generate substantial annual revenues for Willow through research and development payments and royalties. In the first year alone, Willow anticipates receiving $4 million in guaranteed research and development payments.
Beyond the Laurus partnership, Willow also strengthened its financial position by completing a private placement in June. The company’s focus on efficiency resulted in a cash burn of less than $250,000 per month during the quarter. While net loss for the quarter was $1.7 million, this reflects continued investment in research and development.
Willow’s Q2 2024 financial highlights include:
*
Record Revenue:
Revenue reached $1 million, representing a 660% increase year-over-year.*
Strengthened Balance Sheet:
The company ended the quarter with approximately $0.7 million in cash, with an additional $0.5 million in restricted cash that became unrestricted after the quarter ended.*
Cost Efficiency:
Willow transitioned to a more efficient operation, achieving a total used in operating activities of $733,000.Looking ahead, Willow anticipates exceeding $4 million in revenue for fiscal year 2024, representing a nearly 350% increase over 2023. This growth is expected to be driven by existing programs and new partnerships. The company is aiming to add at least one more fully funded, partnered program, as well as a new internal program before the end of the year.
Willow’s focus on precision fermentation technology and its expansion into the health and wellness, food and beverage, and personal care markets, positions it as a key player in the growing bio-based ingredients industry. The company’s commitment to innovation and strategic partnerships are driving its continued success.
