Adam JacksonWillow Biosciences Inc. (TSX: WLLW) announced Monday it achieved record quarterly revenue after nabbing a major pharmaceutical partnership in its second quarter results ending June 30.
The synthetic biology company reported revenue of $1 million for the second quarter, a nearly 600% increase from $135,000 in the same period last year. Despite the growth, Willow posted a net loss of $1.7 million as it continues to invest heavily in research and development.
“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,” CEO Chris Savile said in a statement.
The multi-product development and licensing agreement covers seven active pharmaceutical ingredients (APIs) and intermediates. Willow expects to generate significant annual revenues from the deal, including $4 million in guaranteed research and development payments in the first year.
Willow’s proprietary BioOxi platform, which enables efficient oxidation chemistry at scale, will be used to develop biobased production processes for the APIs.
The Calgary-based firm has pivoted away from cannabinoid production to focus on pharmaceutical and other high-value ingredients using its synthetic biology platform. Willow reported progress on several other partnered programs, including projects with Kalsec Inc. for food ingredients and an undisclosed biopharma partner for pharmaceutical intermediates.
Willow projects revenue to exceed $4 million in 2024 based on existing programs. However, the company noted concerns about its ability to continue as a going concern, with cash reserves of $690,000 as of June 30, down from $3.1 million at the end of 2023.
To shore up its finances, Willow completed a private placement in July, raising gross proceeds of $1.64 million.
