What it does
Eden Research plc (LON:EDEN) has created biopesticides and fungicides based on natural chemistries that protect high-value crops, priced at a comparable level to synthetic alternatives.
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.
How it is doing
At the end of March 2021, Eden Research revealed its partner had received authorisation in Spain for its bio-fungicide.Known as 3LOGY in Italy and Mevalone in the rest of Europe, the product will be sold as ARAW in this new marketplace. It has been approved to treat a “range of new crops” to protect against fungal pathogens.
The company described its performance in 2020 as resilient as it weathered the impact of the global pandemic.
In an update, the group said revenues for the 12 months to December 31 would be £1.6mln, down £400,0000 year-on-year, while the operating loss would be £2.6mln. Importantly, it exited the year well-funded with £7.3mln in the bank.
Assessing the market, Eden said the hospitality industry had been hit hard, which, in turn, affected wine grape production, and by extension demand for crop protection products. In addition, regulatory processes around the world saw wide-scale disruption. As a result, a number of product approvals which had been expected in the year, and which should have resulted in sales, were delayed.
What the boss, Sean Smith, chief executive, says
“It has been an unprecedented year for businesses across the globe, and Eden has not been immune to the disruption caused by the COVID-19 pandemic.
“However, we are proud of the resilience we have demonstrated against this exceptional backdrop and the continued progress we have made in advancing our strategy and positioning Eden for growth in the rapidly growing biopesticides market.”
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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.”