Eden Research PLC (AIM:EDEN, OTCQB:EDNSF)’s regulatory approval of its biofungicide product Mevalone in the state of California amounts to a “significant milestone” for the sustainable agriculture group, according to Cavendish analysts.
This development is particularly notable given California's prominence in wine production, where Mevalone's target disease, botrytis, is a common concern.
Far from an isolated event, Eden’s successful regulatory nod for Mevalone follows a series of approvals across various US states, including the nod for Cedroz, a bionematicide, in California.
These approvals “demonstrated the progress Eden Research is making”, said analysts, adding: “We believe the company’s mix of launched products and pipeline opportunities offers an interesting investment opportunity built upon strong sales growth in the near-term and pipeline opportunities that could deliver mid-to longer-term growth.”
Mevalone, formulated with natural terpene active ingredients using Eden's Sustaine technology, was originally developed to combat botrytis in grapes.
However, its use has since broadened, receiving authorisation in 13 countries for diverse disease targets across more than 30 different crops. This versatility highlights the product's potential beyond its initial application.
Cavendish forecasts £4.9 million in product sales for the full-year 2024 period, with the majority sourced from cornerstone products Mevalone and Cedroz.
The total addressable market in the US for these products is estimated at over €280 million (£240.6 million).