Cenkos has called Eden Research Plc's (AIM:EDEN, OTCQB:EDNSF) American environmental green-light as a significant milestone and achievement – and, with the share price up around 30% on Monday the market clearly agrees.
The stockbroker repeated a ‘buy’ recommendation, in a note, and highlighted that the US approval is opening up a market with an eventual total market potential of over €0.5bn.
In London, Eden shares advanced 1.08p or 28.67% to change hands at 4.83p.
Eden this morning announced that active ingredients (eugenol, geraniol and thymol) used in its Mevalone and Cedroz biopesticide products have received regulatory approval from the United States Environmental Protection Agency (EPA).
The approval specifically creates revenue opportunities estimated by Eden at around 94mlm (£84.9mln) for Mevalone and €189m for Cedroz.
Moreover, Eden told investors that it now expects the registration of Eden's developmental insecticide (total market potential €237mln) to follow a shortened timeline as it is based upon the now-approved active ingredients.
"Eden has been at the forefront of accelerating change in the sustainable agricultural input market for several years, and our authorisations in the US marks the next milestone in this journey, significantly expanding our addressable market to include the second-largest food market in the world,” said Sean Smith, Eden chief executive.
Cenkos analyst Chris Donnellan, in today’s note, said: “Eden Research has significantly expanded its portfolio of opportunities during the pandemic and now has multiple development projects targeting substantial markets, which, assuming successful commercialisation, will add to sales of the core terpene-based pesticide products.
“We believe the sizable markets Eden is targeting support our ‘buy’ recommendation.”