Eden Research Plc
("Eden" or "Company")
Commercialisation agreement with Eastman for nematicide product
Eden Research plc (AIM: EDEN), the AIM-listed company that provides breakthrough natural bio-control products and microencapsulation technologies to the global agrochemicals, animal health and consumer products industries, announces that it has signed an exclusive commercialisation agreement ("Agreement") with Taminco BVBA, a subsidiary of Eastman Chemical Company's global crop protection division ("Eastman"), following a series of successful field trials and market evaluations conducted by Eastman from 2014 through 2016.
The Agreement grants Eastman the exclusive right to develop the market for Eden's nematicide formulation, which will be marketed by Eastman as 'CedrozTM'. Eastman will pay Eden an upfront fee, as well as annual milestone payments until 2019 when it is expected that sales will commence. Eastman will take on the responsibility for the registration of CedrozTM in each territory whilst Eden retains responsibility for the registration of the active ingredients and will supply Eastman with its product requirements globally. The agreement covers 29 countries including the largest markets for nematicide products globally.
Nematodes are a major category of plant pest that cause an estimated $300 million of damage per year in Europe alone. Most major crops are affected by nematodes with particular damage being done in the high value fruit and vegetables segment. This segment of the nematicide market is in the region of $550m globally. Given the withdrawal and restriction in use of a number of key products that were well established in the market, Eden and Eastman are optimistic that CedrozTM will become an effective tool for growers whose options are becoming limited when facing the issue of nematode control.
Aside from its efficacy, CedrozTM benefits from the fact that its active ingredients are exempt from Maximum Residue Level ("MRL") limits in the European Union. This translates into a clear benefit for growers when considering treatment programmes, as CedrozTM can be used without regard to concern for residues, thus allowing growers to protect their crops right up to the point of harvest.
Sean Smith, Chief Executive Officer of Eden, said: "We have been working together with Eastman in the evaluation of our nematicide product since 2014. They have been an excellent partner and have invested significant resources to demonstrate the usefulness of our technology in the treatment of nematodes. Eastman has been a leader in nematode control for several decades, and through their market development of CedrozTM, they will extend this position and grow in the important post-fumigant nematode control market with an effective and safe bio-control product developed by Eden. Eastman's global reach and the robust, versatile and unique technology and formulation expertise that Eden has provided should produce a strong solution for growers challenged with the control of these pests that affect global agriculture by lowering crop yields."
Guy Van Den Bossche, General Manager of Eastman's crop protection division, said: "Eastman is a speciality chemical company, which includes being a leading supplier in soil disinfection products for high value crops. We are constantly looking for new innovative products which make a difference for our customers. This collaboration with Eden around CedrozTM perfectly reflects our market driven approach. CedrozTM is a product with a green profile and we have seen a consistent effectiveness in the extensive testing programme done. We believe that CedrozTM will be a very valuable product in the toolbox of the farmer. CedrozTM responds to the market trends of growing crops in a more sustainable way."
Eden Research plc |
www.edenresearch.com |
Sean Smith, Chief Executive Officer |
Tel: 01285 359 555 |
Alex Abrey, Chief Financial Officer |
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Shore Capital and Corporate Limited |
www.shorecap.com |
Stephane Auton/Patrick Castle |
Tel: 020 7408 4090 |
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Walbrook PR Ltd |
Tel: 020 7933 8780 or [email protected] |
Paul McManus |
Mob: 07980 541 893 |
Lianne Cawthorne |
Mob: 07584 391 303 |
Notes:
Eden Research is a technology development and commercialisation company with intellectual property and expertise in encapsulation, terpenes and environmentally friendly technologies to provide naturally occurring solutions for the global agrochemicals, animal health, and consumer product industries.
Eden's encapsulation technology harnesses the biocidal efficacy of naturally occurring chemicals produced by plants (terpenes) and can also be used with both natural and synthetic compounds to enhance their performance and ease-of-use. The technology uses yeast cells that are a by-product of numerous commercial production processes to deliver a slow release of natural compounds for agricultural and non-agricultural uses. Terpenes are already widely used in the food flavouring, cosmetics and pharmaceutical industries.
Historically, terpenes have had limited commercial use in the agrochemical sector due to their volatility, phytotoxicity and poor solubility. Eden's platform encapsulation technology provides a unique, environmentally friendly solution to these problems and enables terpenes to be used as effective, low-risk agrochemicals.
With leading consultants in their respective fields, the Company 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 £12m 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, 3AEY, were approved as new ingredients for use in plant protection products. This represents 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 all of 2013, Eden's approvals represented 3 of only 10 new active ingredients approved by the EC.
3AEY has been authorised for sale in Kenya, Malta, Greece, Bulgaria, Spain and Italy.
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
This document contains statements that may constitute forward-looking statements. A variety of factors, many of which are beyond Eastman's or Eden's control could cause the actual developments to be materially different from any developments that may be expressed or implied by such forward-looking statements.
Eastman and Eden neither intend, nor assume any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.
