Willow Announces Filing of Patent Application for Process to Produce Corticosteroids at Signficantly Reduced Cost

Company’s BioOxi™-based process reduces number of steps and associated costs of corticosteroids manufacturing by up to two-thirds

SUNNYVALE, Calif., Aug. 30, 2023 /PRNewswire/ - Willow Biosciences Inc. (“Willow”) (TSX: WLLW) (OTCQB: CANSF), a leading biotechnology company focused on revolutionizing industrial manufacturing of pure, consistent, and sustainable functional ingredients, announces the development of a process to produce corticosteroids at significantly reduced cost by utilizing its BioOxi™ platform for efficient bio-hydroxylation that can transform manufacturing.

Corticosteroids Represent Growing Global Multibillion-Dollar Market

Corticosteroids are broadly used as anti-inflammatory and immunosuppressant drugs. According to independent research firm, ResearchandMarkets, the global corticosteroids market is expected to grow at a CAGR of 4.1% and reach $5.93 billion in 2026 and North America was the largest region for use of corticosteroids in 2022. A large percentage of corticosteroid production is outside the United States, which can pose supply chain security issues for drug manufacturers and potentially lead to drug shortages.

Willow-Owned Corticosteroid Program Can Disrupt the Market

Willow’s innovative BioOxi process represents a step change by significantly reducing production costs and is expected to be sufficiently competitive to enable greater onshoring of corticosteroid manufacturing, leading to a more secure domestic supply chain. Coupled with pending patent protection, should it be granted, Willow believes this wholly-owned technology will provide a significant competitive advantage to potential pharmaceutical manufacturing partners.

“Our newly developed BioOxi platform launched in April of this year is already demonstrating potential through partnered programs and Willow-owned programs, where we expect faster pathways to revenue generation,” said Dr. Chris Savile, Willow’s President and CEO. “BioOxi is already unlocking valuable revenue growth opportunities in the near-term particularly with corticosteroids, which we believe will be a large-scale market opportunity. We believe the economic value of a Willow-held patent to manufacture at a demonstrably lower cost than current corticosteroid production represents an exciting opportunity for us and our stakeholders.”

By leveraging BioOxi, commercial partners can revolutionize the manufacturing process of hydroxylated functional ingredients such as steroids, polyphenols, oxyterpenes, and other ingredients.

Willow develops and produces precision fermented functional ingredients for the health and wellness, food and beverage and personal care markets. Willow’s FutureGrown^TM and BioOxi^TM platforms allow 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 BiOxi™ 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: Willow’s BioOxi^TM-based corticosteroid production process and patent application in respect thereof, including anticipated receipt of patent approval, associated cost reduction, economic value, market opportunity and transformation of manufacturing; the ability to accommodate new programs and to expand capabilities; the demand and market size potential of the synthetic ingredients industry; and the business plan of the Company, generally, including becoming a leader in precision fermentation, research and production of functional ingredients. When used in this news release, the words “will,” “anticipate,” “believe,” “estimate,” “expect,” “intent,” “may,” “project,” “should,” and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by the Company which include, but are not limited to: the success of Willow’s strategic partnerships, including the development of future strategic partnerships; the financial strength of the Company; the ability of the Company to fund its business plan using cash on hand and existing resources; the market for Willow’s products and processes; the ability of the Company to obtain and retain applicable licences and patents; the ability of the Company to obtain suitable manufacturing partners and other strategic relationships; and the successful implementation of Willow’s commercialization and production strategy, generally. Forward-looking statements are subject to a wide range of risks and uncertainties, and although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results biotechnology industry in general; the success of the Company’s research and development strategies; infringement on intellectual property; failure to benefit from partnerships or successfully integrate acquisitions; actions and initiatives of federal, state and provincial governments and changes to government policies and the execution and impact of these actions, initiatives and policies; import/export and research restrictions for cannabinoid-based operations; the size of the medical-use and adult-use cannabinoid market; competition from other industry participants; adverse U.S., Canadian and global economic conditions; adverse global events and public-health crises; failure to comply with certain regulations; departure of key management personnel or inability to attract and retain talent; and other factors more fully described from time to time in the reports and filings made by the Company with securities regulatory authorities. Please refer to the Company’s most recent annual information form and management’s discussion and analysis for additional risk factors relating to Willow, which can be accessed either on Willow’s website at www.willowbio.com or under the Company’s profile on www.sedarplus.ca.

Any financial outlook and future-oriented financial information contained in this document regarding prospective financial performance, financial position, cash balances or revenue is based on assumptions about future events, including economic conditions and proposed courses of action based on management’s assessment of the relevant information that is currently available. Projected operational information contains forward-looking information and is based on a number of material assumptions and factors, as are set out above. These projections may also be considered to contain future-oriented financial information or a financial outlook. The actual results of the Company’s operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. Actual results will vary from projected results. Readers are cautioned that any such financial outlook and future-oriented financial information contained herein should not be used for purposes other than those for which it is disclosed herein.

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.

Certain information contained herein has been obtained from published sources prepared by independent industry analysts and third-party sources (including industry publications, surveys and forecasts). While such information is believed to be reliable for the purposes used herein, Willow does not assume any responsibility for the accuracy of such information. Some of the sources cited in this news release have not consented to the inclusion of any data from their reports, nor has Willow sought their consent.

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SOURCE Willow Biosciences Inc.

Company Codes: OTC-QX:CANSF, Toronto:WLLW, OTC-BB:CANSF, OTC-PINK:CANSF, OTCQB:CANSF