- Biotechnology firm Willow Biosciences (TSX:WLLW) reported a net loss of C$6.1 million in 2024, despite achieving a roughly threefold increase in revenue
- Willow Biosciences announced that it will cease active operations following the sale of its subsidiary, Epimeron USA
- The sale of Epimeron USA is a move aimed at addressing Willow’s financial challenges
- Willow Biosciences stock (TSX:WLLW) last traded at $0.01
Biotechnology firm Willow Biosciences (TSX:WLLW) reported a net loss of C$6.1 million in 2024, despite achieving a roughly threefold increase in revenue.
In a news release highlighting these results, the company said that its revenue rose to C$4.6 million from C$1.1 million in the previous year. However, this financial improvement was insufficient to offset the overall losses, leading to a challenging fiscal year for the company.
In a significant development, Willow Biosciences announced that it will cease active operations following the sale of its subsidiary, Epimeron USA. The sale, which is expected to close by the end of April 2025, will mark the end of the company’s operational activities. The subsidiary, which houses Willow’s business operations, intellectual property, and research and development team, is being sold to a privately-held entity based in the United Kingdom for US$3.38 million.
As part of this transition, key personnel, including CEO Dr. Chris Savile and Senior Vice President of Research and Development Dr. Trish Choudhary, will be terminated. The company stated that these terminations are necessary as it will no longer be carrying on active operations following the sale.
The sale of Epimeron USA is a move aimed at addressing Willow’s financial challenges. The proceeds from the sale are expected to improve the company’s cash position, which stood at C$333,000 at the end of 2024. Despite this, the company’s total liabilities of C$2.9 million and a significant deficit of C$127.8 million draw attention to the financial difficulties it faces.
Willow Biosciences’ decision to cease operations and sell its subsidiary reflects the broader challenges within the biotechnology sector, where companies often struggle to balance high research and development costs with revenue generation. The company’s shareholders are set to vote on the sale at an upcoming meeting, with major shareholders already expressing support for the transaction.
About Willow
Willow Biosciences Inc. develops and produces precision fermented functional ingredients for the health and wellness, food and beverage and personal care markets.
Willow Biosciences stock (TSX:WLLW) last traded at $0.01 and has fallen 85.00 per cent since this time last year.
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(Top image via Willow Biosciences.)
