What it does
It has two products on the market: Mevalone (a bio-fungicide) and Cedroz, which protects against soil-based pests called nematodes.
And it has partnerships with industry big hitters such as Eastman, Sipcam Oxon (which is also a major shareholder) and SumiAgro that have opened the doors to deals in Mexico, Portugal, Italy and the Benelux countries to name a few.
Sustaine encapsulation technology
Eden’s Sustaine encapsulation technology is free from plastics, is derived from a natural source, and is suitable for use with both sustainable biopesticides and conventional synthetic pesticides.
Indeed, it is this technology that has enabled the commercialisation of Eden’s own biopesticides which are used to protect grapevines and various other crops.
Big company, significant deal
On January 8 Eden said it had signed a one-year exclusive evaluation agreement with Corteva Biosciences, the US giant worth more than US$20bn.
While the exact details of the evaluation haven’t been released, Eden chief executive Sean Smith confirmed Sustaine would be used on a “significant crop”.
The Corteva tie-up brings with it a certain cachet, said broker Cenkos. “We see this agreement, following positive field trials, as a strong endorsement of Eden’s Sustaine technology,” added analyst Chris Donnellan.
According to CEO Smith, there are more big wheels from the world of plant science talking to Eden about its terpene-based products.
Rapid start to 2020
In the first of three announcements in little over a week, Eden said its three active ingredients have been approved for use in organic farming in the European Union. The ingredients, geraniol, eugenol and thymol, got the all-clear to be used in organic farming after being included in the EU’s Organic Production Regulation.
Smith hailed the “significant progress” made by the crop health company last year, which he said, “will ultimately result in an expansion of product sales revenue in new product markets and geographies”.
Another update provided guidance for revenues generated during the past calendar year. They are expected to be around £2mln, down from £2.8mln a year earlier, but achieved in the face of tough growing conditions in southern Europe. The operating loss is forecast to be £1.4mln.
What the broker says
House broker Cenkos is predicting Eden will generate product sales of £3.6mln this year, rising to £6.6mln in 2021, at which point it will be profitable.
“We remain positive on Eden due to its appealing product sales profile, exposure to a high-growth market, supportive regulatory environment and path towards profitability,” said analyst Donnellan.
“Our forecasts represent a conservative approach based on visible opportunities with upside possible based upon regulatory approvals and milestones.”