Willow Biosciences Posts Record Revenue in Q2

LOS ANGELES- Willow Biosciences Inc. a synthetic biology company specializing in pharmaceutical ingredients, reported record revenue of $1 million for the second quarter of 2024, a 660% increase compared to the same period last year. Despite this growth, the company posted a net loss of $1.7 million as it continues to invest in research and development.

The surge in revenue is largely attributed to a significant partnership with Indian pharmaceutical company Laurus Labs, announced in May. The deal, which covers the development and licensing of seven active pharmaceutical ingredients (APIs), is expected to generate $4 million in guaranteed R&D payments in the first year, along with potential royalties upon commercialization.

Willow has shifted focus from cannabinoid production to pharmaceutical and other specialized ingredients. The company reported progress on additional projects, including collaborations in the food and biopharma sectors. Despite optimistic revenue projections of over $4 million in 2024, Willow remains concerned about its cash reserves, which stood at $690,000 as of June 30, down from $3.1 million at the end of 2023.

To strengthen its financial position, Willow completed a private placement in July, raising $1.64 million. The company has also reduced its monthly cash burn to under $250,000, reflecting efforts to improve operational efficiency while pursuing strategic growth opportunities.

Looking ahead, Willow’s ability to sustain momentum depends on the success of ongoing partnerships and its capacity to secure additional funding as it navigates the competitive landscape of pharmaceutical ingredient production.