WILLOW BIOSCIENCES REPORTS FOURTH QUARTER AND FISCAL YEAR 2023 FINANCIALS AND OPERATIONS AND FILING OF ITS 2023 AIF
- Record revenue of $1.2 million in 2023, a 43% growth over 2022.
- Completed reorganization and moved lab operations to Sunnyvale, California.
- Signed four new partnerships positioning for growth in 2024.
- Net loss of $13.0 million in 2023.
- Cash and cash equivalents at $3.1 million as of December 31, 2023.
- Anticipates significant revenue growth in 2024.
- Transition of R&D programs to commercial revenue expected.
- Execution of partnership agreements on corticosteroid programs planned.
- High general and administrative expenses in 2023.
- Decrease in cash and cash equivalents from 2022 to 2023.
- Net loss of $13.0 million in 2023.
- Anticipated reduction in cash burn towards improved financial results.
- Risks associated with executing commercial agreements and partnership agreements.
Completed the reorganization of the Company during 2023 with all lab operations now located in the
Record revenue in 2023 of
Record number of new collaborations executed in 2023, with four new partnerships during the year that position Willow for continued growth in 2024
"Fiscal 2023 was a transformative year for Willow as we continued to take significant steps to position the company for nearer term revenue creation, expanded our product pipeline, reduced our cash burn and moved all operations to a new lab in
- Continued to progress the Company's transformative corticosteroid manufacturing platform with proof of concept now established on multiple large volume corticosteroids, including hydrocortisone, prednisolone, and prednisone.
- Completion of a non-brokered financing for
with significant participation from Company insiders consisting of convertible debentures and warrants.$800,000 - Announced a collaboration with Suanfarma, a global manufacturer of pharmaceutical ingredients, for the development of a large volume anti-infective active pharmaceutical ingredient.
- Advanced an existing partnership and a new partnership with Kalsec to develop natural ingredients for the food and beverage sectors, respectively.
- Advanced the Company's collaboration with a leading Biopharmaceutical Company to develop high-value advanced intermediates and active pharmaceutical ingredients.
RESULTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
| |||
Financial Results | 2023 | 2022 | |
Revenue | |||
General and administrative | 5,598 | 7,641 | |
Research and development | 6,800 | 7,473 | |
Share based compensation | 420 | 1,461 | |
Depreciation and amortization | 1,831 | 2,646 | |
Gain on right of use asset | - | (15) | |
Foreign exchange (gain) loss | (295) | 8 | |
Gain on fair value warrant liability | (23) | (3,742) | |
Restructuring costs | - | 384 | |
Net finance income | (125) | (274) | |
Loss before income taxes | (13,034) | (14,761) | |
Current income tax expense | 10 | 53 | |
Deferred income tax recovery | (15) | - | |
Total income tax (expense) recovery | (5) | 53 | |
Net loss | (13,029) | (14,814) | |
Foreign exchange (loss) gain on translation of foreign operations | (48) | 45 | |
Net comprehensive loss | |||
Basic and diluted loss per share | |||
As at December 31 | |||
Statement of Financial Position: | 2023 | 2022 | |
Cash and cash equivalents | |||
Total assets | 6,673 | 18,148 | |
Shareholders' equity | 3,436 | 16,374 |
With the Company's success in executing on its 2023 milestones and the anticipation that it will successfully execute on those targeted for 2024, Willow currently expects significant revenue growth over 2024 along with a demonstrable reduction in cash burn toward its goal of noted improvement in bottom-line financial results.
- Willow continues to be on target for achieving the 2024 milestones outlined in its January 10, 2024 press release:
- Execution of commercial agreements on its existing programs: With the continued success on its existing partnered R&D programs, the Company anticipates the execution of at least one commercial agreement in the first half of 2024 and additional agreements in the second half of the year that could include milestone, profit share, license or royalty payments.
- Transition of R&D programs to commercial revenue: With multiple R&D programs now complete or nearing completion, the Company anticipates generating first commercial revenues from at least two products as they transition to commercial production. Commercial revenue is expected to be potentially milestone, royalty, and ingredient supply revenue.
- Significant increase in revenues: Full year R&D revenues for 2024 are expected to increase by over
100% compared to 2023. In addition, commercial stage revenue is expected to commence on multiple programs. - Closing at least one partnership agreement on its corticosteroid programs: Given the ongoing discussions with potential partners with regards to our transformative manufacturing process for hydrocortisone, prednisolone, budesonide and other corticosteroids, the Company anticipates execution of one large strategic partnership or multiple product specific partnerships to bring these target molecules to commercial scale manufacturing.
- Announcing additional new partnerships with a focus on innovators: Based on the proven applicability and scalability of the BioOxi platform and ongoing dialog with multiple potential parties, the Company anticipates signing two or more additional partnerships in the first half of 2024 and additional partnerships in the second half of the year to develop biobased manufacturing processes for innovator-owned targets.
- Continued advancement of its core technology platform: The Company continues to advance its platform through development of generative AI-powered enzyme discovery and design capabilities coupled with proprietary HTP gene editing tools to enable rapid development of industrially relevant enzymes and organisms. Continuous improvements toward leaner and more cost-effective development cycles include onboarding rapid DNA sequencing capabilities and developing protocols to multiplex thousands of reactions in a single run with the goal of doubling output with current resources.
Willow develops and produces precision fermented ingredients for the health and wellness, food and beverage, and personal care markets. Willow's FutureGrownTM and BioOxiTM 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 BioOxiTM are registered trademarks of Willow Biosciences Inc. All other trademarks are trademarks of their respective holders.
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 ability to accommodate new programs and to expand R&D capabilities with new partners and customers; intentions and expectations with respect to Willow's existing partnerships and the benefits thereof; expectations regarding future partnerships including in respect of plans to close at least one partnership agreement on its corticosteroid programs as well as plans regarding the signing of two or more additional partnerships in the first half of 2024 and additional partnerships in the second half of the year to develop biobased manufacturing processes for innovator-owned targets; expectations surrounding Willow's execution of commercial agreements on its existing programs in 2024 and the timing thereof (including the execution of at least one commercial agreement in the first half of 2024 and additional agreements in the second half of the year that could include milestone, profit share, license or royalty payments); Willow's business outlook for 2024; the demand and market size potential of the synthetic ingredients industry; expectations regarding financial positioning and growth on a go-forward; expectations regarding growth in 2024, including significant revenue growth and improved bottom-line financial results; expectations regarding commercial revenue and the composition and timing thereof (including the expectation that commercial stage revenue will commence on multiple programs and the transition of R&D programs to commercial revenue); Willow's intended focus on a go-forward; expectation that R&D revenue will increase over
This press release contains financial outlook and future-oriented financial information (collectively, "FOFI") about Willow's prospective financial performance, financial position, bottom-line financial results, cash burn, cash balances, or revenue, including expectations of significant revenue growth over 2024 along with a demonstrable reduction in cash burn and that 2024 R&D revenue will increase over
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.
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SOURCE Willow Biosciences Inc.