TIDMEDEN
RNS Number : 6693Z
Eden Research plc
14 January 2020
14 January 2020
Eden Research Plc
("Eden" or "Company")
Year-end trading update
Eden Research plc (AIM: EDEN), the AIM quoted company that
develops and supplies breakthrough biopesticide products and
natural microencapsulation technologies to the global crop
protection, animal health and consumer products industries,
provides the following unaudited trading update for the year ended
31 December 2019.
Revenue for the year is expected to be approximately GBP2.0m
(2018: GBP2.8m) with a loss before tax and statutory operating loss
of approximately GBP1.4m (2018: loss of GBP0.5m).
Trading update highlights:
-- Operating loss for the year of GBP1.4m is in line with market expectations
-- The majority of the GBP2.0m of revenue was derived from product sales GBP1.7m (2018: GBP1.6m), achieved despite
unfavourable growing conditions in the Southern EU, with milestone and upfront payments making up the balance
-- First marketing authorisations received for Cedroz, the Company's second commercial product which is being
marketed by Eastman Chemical
-- One-year exclusive Evaluation Agreement signed with Corteva (NYSE: CTVA), the fourth largest agriculture input
company in the world, covering seed treatments (post year-end)
During the year, Eden made good commercial progress, with the
first marketing authorisations received for Cedroz, the Company's
second commercial product, a nematicide which is being marketed by
Eastman Chemical in Malta, Belgium and Mexico. Further marketing
authorisations are expected during the course of 2020, which will
result in an expanded footprint from which Eden will ultimately
realise revenue from product sales.
In addition, Eden signed exclusive distribution agreements for
the Company's first commercial product, a fungicide marketed as
Mevalone, with Sipcam Oxon for Portugal and Benelux and with Sumi
Agro Europe in five new markets across central Europe, including
Germany and Poland.
The well-publicised hot and dry growing conditions across
southern Europe during the peak 2019 growing season negatively
impacted the development of Botrytis and this resulted in
botryticide usage generally being impacted. Despite the resulting
overall contraction of the botryticide market, product sales
revenue increased as a whole compared to last year. The crop
protection business is well-known for its sensitivity to growing
conditions, but as the Company's geographical footprint and product
portfolio expand, it expects to be more insulated from the
variability of the weather.
Post year end, Eden has announced that its three EU-registered
active ingredients, geraniol, eugenol and thymol, have all been
approved for use in organic farming, following inclusion in the
EU's Organic Production Regulation. This opens up new commercial
opportunities for the Company and is relevant to all products that
utilise the Company's three EU-registered active ingredients.
The Company has also signed a one-year exclusive Evaluation
Agreement with Corteva, which allows Corteva time to evaluate
Eden's Sustaineä encapsulation technology and several formulations
in specific seed treatment applications in certain major
territories and, if successful, will lead to Corteva being granted
exclusive distribution rights, on terms to be negotiated. The
overall global seed treatments market is in excess of $5 billion
per year, and the opportunities being pursued by Eden and Corteva
represent a meaningful percentage of the overall market and will
initially target several major crops, including broad acre crops.
This represents Eden's first collaborative development efforts in
the area of seed treatments as well as the first disclosed
collaboration with a global leader in agricultural inputs.
Additionally, this is the most advance work done to date on major
broad-acre crops.
Sean Smith, Chief Executive Officer of Eden, said: "The Company
has made significant progress in 2019 which will ultimately result
in an expansion of product sales revenue in new product markets and
geographies. Marketing authorisations and commercial partnerships
are key to the future success of Eden and so it is pleasing to have
been able to announce a number of these during the last year.
In addition to expanding our commercial footprint through the
introduction of new products into new geographical areas, it is
also important for us to fully exploit the investment we have made
in Mevalone thus far, which is what we expect to achieve by having
entered into new distribution agreements with Sipcam Oxon and Sumi
Agro Europe covering several important new territories in 2019.
Looking forward, we expect to be able to announce further
marketing authorisations for both Mevalone and Cedroz as well as
progress that is being made with existing and new partners in areas
such as seed treatments, insecticides and other applications where
the use of our active ingredients and Sustaineä encapsulation
technology can bring important benefits to our commercial partners,
growers, and ultimately consumers who benefit from sustainable
agriculture."
For further information contact:
Eden Research plc www.edenresearch.com
Sean Smith
Alex Abrey 01285 359 555
Cenkos Securities (Nominated advisor and
broker)
Giles Balleny / Cameron MacRitchie (corporate
finance)
Michael Johnson (sales) 020 7397 8900
Powerscourt (Financial PR)
Nick Dibden 020 7250 1446
Courtney Sanford eden@powerscourt-group.com
Notes:
Eden Research is an AIM listed company that develops and
supplies breakthrough biopesticide products and natural
microencapsulation technologies to the global crop protection,
animal health and consumer products industries
Eden's Sustaineä encapsulation technology harnesses the biocidal
efficacy of naturally occurring chemicals produced by plants
(terpenes) and can be used with both natural and synthetic
compounds to enhance their performance and ease-of-use.
Sustaine microcapsules are naturally derived, plastic-free,
biodegradable micro-spheres derived from yeast extract. They
produce stabilised aqueous suspensions which, are easy to mix and
apply, have phased release patterns, are safer for the environment
and the crops themselves.
The European Chemicals Agency (ECHA) has proposed an EU-wide
restriction on the placing on the market or use of
"intentionally-added" microplastic particles. The proposed
restriction includes the use of microplastics for agricultural and
horticultural purposes, including polymers utilized for
controlled-release fertilizers, encapsulated plant protection
products (PPPs), seed coatings, and biocides.
By 2025 in the EU, pesticides containing synthetic polymer
microplastics are likely to be banned and removed from the market.
The only acceptable alternative is the substitution with
biodegradable formulations. Reformulated products will need to be
evaluated and registered within the five-year transition
period.
Sustaine is one of the only viable, proven and immediately
registerable solutions to the microplastics problem in formulations
requiring encapsulation.
Historically, terpenes have had limited commercial use in the
agrochemical sector due to their volatility, phytotoxicity and poor
solubility. Sustaine provides a unique, environmentally friendly
solution to these problems and enables terpenes to be used as
effective, low-risk agrochemicals.
Eden is developing these technologies through innovative
research and a series of commercial production, marketing and
distribution partnerships.
The Company has a number of patents and a pipeline of products
at differing stages of development targeting specific areas of the
global agrochemicals industry. To date, the Company has invested in
the region of GBP14m in developing and protecting its intellectual
property and seeking regulatory approval for products that rely
upon the Company's technologies. Revenues earned by the Company
have been modest whilst the Company has concentrated on securing
patent protection for its intellectual property, gaining regulatory
approvals, identifying suitable industrial partners, and entering
into commercial agreements.
In May 2013, the three actives that comprise Eden's first
commercial product, Mevalone, were approved as new ingredients for
use in plant protection products by the European Commission ("EC").
This represented a major milestone in the commercialisation of
Eden's technology and is a significant accomplishment for any
company. To illustrate this point, one should note that in 2013,
Eden's approvals represented 3 of only 10 new active ingredients
approved by the EC.
Mevaloneä is a foliar fungicide which has been authorised for
sale in Kenya, Malta, Greece, Bulgaria,
Spain, Italy, France, Cyprus, Albania, Portugal and
Macedonia.
Cedrozä is a nematicide which has been authorised for sale in
Malta, Belgium and Mexico.
Eden was admitted to trading on AIM on 11 May 2012 and trades
under the symbol EDEN.
For more information about Eden, please visit:
www.edenresearch.com.
END
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END
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