Eden Research plc - Year-end trading update
("Eden" or "Company")
Year-end trading update
Revenue for the year is expected to be approximately
Trading update highlights:
- Operating loss for the year of
£1.4mis in line with market expectations
- The majority of the
£2.0mof revenue was derived from product sales £1.7m(2018: £1.6m), achieved despite unfavourable growing conditions in the Southern EU, with milestone and upfront payments making up the balance
- First marketing authorisations received for Cedroz, the Company's second commercial product which is being marketed by Eastman Chemical
- One-year exclusive Evaluation Agreement signed with Corteva (NYSE: CTVA), the fourth largest agriculture input company in the world, covering seed treatments (post year-end)
During the year, Eden made good commercial progress, with the first marketing authorisations received for Cedroz, the Company's second commercial product, a nematicide which is being marketed by Eastman Chemical in
In addition, Eden signed exclusive distribution agreements for the Company's first commercial product, a fungicide marketed as Mevalone, with Sipcam Oxon for
The well-publicised hot and dry growing conditions across southern
Post year end, Eden has announced that its three EU-registered active ingredients, geraniol, eugenol and thymol, have all been approved for use in organic farming, following inclusion in the EU's Organic Production Regulation. This opens up new commercial opportunities for the Company and is relevant to all products that utilise the Company's three EU-registered active ingredients.
The Company has also signed a one-year exclusive Evaluation Agreement with Corteva, which allows Corteva time to evaluate Eden's Sustaineä encapsulation technology and several formulations in specific seed treatment applications in certain major territories and, if successful, will lead to Corteva being granted exclusive distribution rights, on terms to be negotiated. The overall global seed treatments market is in excess of
In addition to expanding our commercial footprint through the introduction of new products into new geographical areas, it is also important for us to fully exploit the investment we have made in Mevalone thus far, which is what we expect to achieve by having entered into new distribution agreements with Sipcam Oxon and
Looking forward, we expect to be able to announce further marketing authorisations for both Mevalone and Cedroz as well as progress that is being made with existing and new partners in areas such as seed treatments, insecticides and other applications where the use of our active ingredients and Sustaineä encapsulation technology can bring important benefits to our commercial partners, growers, and ultimately consumers who benefit from sustainable agriculture."
For further information contact:
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01285 359 555
Cenkos Securities (Nominated advisor and broker)
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020 7397 8900
Powerscourt (Financial PR)
020 7250 1446
Eden's Sustaineä 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.
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
Mevaloneä is a foliar fungicide which has been authorised for sale in
Cedrozä is a nematicide which has been authorised for sale in
Eden was admitted to trading on AIM on
For more information about Eden, please visit: www.edenresearch.com.
This information is provided by RNS, the news service of the
Quick facts: Eden Research plc
Market Cap: £26.62 m
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