Biotech on An Upswing Following Licensing and Royalty Agreement - InvestingChannel

Biotech on An Upswing Following Licensing and Royalty Agreement

Everyone is looking for sustainable and clean products. And shares of this firm, which develops and produces precision fermented functional ingredients for the health and wellness, food and beverage and personal care markets, are moving higher on news of a license and royalty agreement.

Leading biotechnology firm Willow Biosciences Inc. (TSX: WLLW) (OTCQB: CANSF) focuses on revolutionizing industrial manufacturing of pure, consistent, and sustainable ingredients. The firm announced in a press release today the signing of a commercial license and royalty agreement with Kalsec, Inc., a leading global producer of natural taste and sensory, food protection, colors and advanced hops ingredients for the food and beverage industry. The agreement defines the financial terms for using Willow’s technology to scale and manufacture a natural ingredient that adds to Kalsec’s portfolio for use in savory food applications.

Willow expects to receive milestone payments for the first pilot and industrial batches followed by tiered royalty payments on net worldwide sales after launch from this commercial license and royalty agreement. Kalsec will be responsible for regulatory, manufacturing, and sales and marketing costs. Additionally, the firm expects the research and development phase of the agreement to be completed in 2024, with regulatory and scale-up work to continue into 2025.  

 

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