The corks were out today as shares in Eden Research PLC (LON:EDEN) shot higher after the agri-biotech firm received authorisation in France for its first product, a treatment for a key fungal disease in table and wine grapes.
Eden said its terpene-based fungicide product, 3AEY, will be sold in France by its partner SumiAgro France, part of Japanese giant Sumitomo Corp, under the brand name Mevalone to treat botrytis.
The disease is a widespread fungal infection that causes grey mould on fruits and vegetables and which can lead to the rapid loss of commercially valuable crops, with average losses from affected crops accounting for around 20% of the total harvest.
House broker Shore Capital noted that the news is “a significant and long-awaited milestone for the company.”
In reaction, Eden shares surged 37% higher, up 3.75p to 13.875p.
Chateau quality ...
Eden’s chief executive, Sean Smith, said: "Following marketing trials undertaken in 2015 and 2016, Mevalone has been well received by customers throughout the EU southern zone.
“The unique characteristics that Mevalone has in terms of its safety and environmental profile, efficacy and exemption from maximum residue limits make it an interesting and useful product for growers,"
In a note to clients, Shore Capital's Phil Carrol said: “We believe this is a positive update from Eden with the approval from the French authorities taking longer than we had anticipated but it has been an issue outside of the company’s control.
“Positively, the approval has been granted in time so Mevalone can be sold in the 2017 season.”
He noted that “the market for Botryticides alone is more than $350 million per annum.”