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Eden Research plc - Update on Bayer Animal Health Agreement

RNS Number : 9990N
Eden Research plc
27 May 2020
 

27 May 2020

Eden Research Plc

("Eden" or "Company")

Update on Bayer Animal Health Agreement

Eden Research plc (AIM: EDEN), the AIM-quoted company focused on sustainable biopesticides and plastic-free encapsulation technology for use in global crop protection, animal health and consumer products industries, today announces that it has agreed to an amendment to its existing license agreement with Bayer Animal Health (or "Bayer") for animal health products.

To progress the final development of a portfolio of Bayer products based upon Eden's technology and know-how, both parties have agreed to amend the existing license agreement to reflect several key changes. There will be an increased investment in the project, which has been facilitated in part by Eden's successful fundraise in March 2020. The amended agreement will allow Eden to contribute to the formulation development process by deploying its expertise with bio-active substances and formulations developed over a number of years.

The Company has previously communicated that there have been some challenges relating to one important formulation. The amended agreement is designed to overcome these challenges and better meet Bayer's stringent product profile requirements through an expanded collaborative approach.

Bayer remains committed to the commercialisation of up to four formulations, subject to Eden reformulation and testing, and Bayer evaluation and acceptance of reformulation and testing results. If for any reason Bayer does not advance the project, both parties have agreed that all elements of the intellectual property and know-how will transfer to Eden, including formulations, clinical and marketing data, market research, business plans, the associated brands and trademarks, and other information relating to the project.

The amended agreement also specifically references the intention of the parties to enter into a supply agreement upon successful completion of the development work. The anticipated commercial launch of these products is a part of Eden's strategic priority for business line diversification and demonstrates the scope for further exploitation of the Company's core technologies and know-how beyond biopesticides and crop protection.

 

This announcement contains information which, prior to its disclosure, was considered inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (MAR)

 

For further information contact:

Eden Research plc

www.edenresearch.com

Sean Smith
Alex Abrey

01285 359 555



Cenkos Securities plc (Nominated advisor and broker)


Giles Balleny / Cameron MacRitchie (corporate finance)
Michael Johnson (sales)

020 7397 8900



Hawthorn Advisors (Financial PR)


Jana Tsiligiannis
Ed Curtis

[email protected]

 

 

Notes:

Eden Research is an AIM quoted company that develops and supplies breakthrough biopesticide products and natural, plastic-free microencapsulation technologies to the global crop protection, animal health and consumer products industries

Eden's Sustaine encapsulation technology harnesses the biocidal efficacy of naturally occurring chemicals produced by plants (terpenes) and can be used with both natural and synthetic compounds to enhance their performance and ease-of-use.

Sustaine microcapsules are naturally derived, plastic-free, biodegradable micro-spheres derived from yeast extract. They produce stabilised aqueous suspensions which, are easy to mix and apply, have phased release patterns, are safer for the environment and the crops themselves.

The European Chemicals Agency (ECHA) has proposed an EU-wide restriction on the placing on the market or use of "intentionally-added" microplastic particles. The proposed restriction includes the use of microplastics for agricultural and horticultural purposes, including polymers utilized for controlled-release fertilizers, encapsulated plant protection products (PPPs), seed coatings, and biocides.

By 2025 in the EU, pesticides containing synthetic polymer microplastics are likely to be banned and removed from the market. The only acceptable alternative is the substitution with biodegradable formulations. Reformulated products will need to be evaluated and registered within the five-year transition period.

Sustaine is one of the only viable, proven and immediately registerable solutions to the microplastics problem in formulations requiring encapsulation.

Historically, terpenes have had limited commercial use in the agrochemical sector due to their volatility, phytotoxicity and poor solubility. Sustaine provides a unique, environmentally friendly solution to these problems and enables terpenes to be used as effective, low-risk agrochemicals.

Eden is developing these technologies through innovative research and a series of commercial production, marketing and distribution partnerships.

The Company has a number of patents and a pipeline of products at differing stages of development targeting specific areas of the global agrochemicals industry. To date, the Company has invested in the region of 14m in developing and protecting its intellectual property and seeking regulatory approval for products that rely upon the Company's technologies. Revenues earned by the Company have been modest whilst the Company has concentrated on securing patent protection for its intellectual property, gaining regulatory approvals, identifying suitable industrial partners, and entering into commercial agreements. 

In May 2013, the three actives that comprise Eden's first commercial product, Mevalone, were approved as new ingredients for use in plant protection products by the European Commission ("EC"). This represented a major milestone in the commercialisation of Eden's technology and is a significant accomplishment for any company.  To illustrate this point, one should note that in 2013, Eden's approvals represented 3 of only 10 new active ingredients approved by the EC.

Mevalone is a foliar fungicide which has been authorised for sale in KenyaMaltaGreeceBulgaria, SpainItalyFranceCyprusAlbaniaPortugal and Macedonia.

Cedroz is a nematicide which has been authorised for sale in Malta, Belgium and Mexico.

Eden was admitted to trading on AIM on 11 May 2012 and trades under the symbol EDEN.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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Price: 8.15

Market: AIM
Market Cap: £31 m
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