17 December 2019
Eden Research plc
("Eden" or "Company")
Distribution Agreement with SumiAgro Europe
Eden Research plc (AIM: EDEN), the 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, is pleased to announce that it has signed an exclusive distribution agreement ("Agreement") with SumiAgro Europe ("SAE") which allows SAE the exclusive right to sell Eden's fungicide product, Mevaloneä, in five new markets across central Europe, including Germany and Poland.
Under the Agreement, once regulatory approval has been received, Eden will supply and SAE will distribute Mevalone for use as a fungicide for grapes, as well as for the treatment of storage diseases on apples, where growers will be able to extend the shelf-life of apples and help to reduce food waste and overall cost in the supply chain.
Mevalone offers growers tremendous advantages by providing high levels of efficacy against important crop diseases. The active ingredients in Mevalone are exempt from residue limits and have very low or no pre-harvest intervals, giving growers the ability to apply the product just prior to harvest, providing maximum benefits and flexibility.
Mevalone is formulated with Eden's Sustaineä encapsulation and delivery technology, a proven system derived from yeast. The Sustaine technology has enabled the safe and effective use of Eden's registered active ingredients by improving bioactivity and efficacy, controlling volatility and improving crop safety. Furthermore, Sustaine is not based upon plastics, which are typically used to microencapsulate active ingredients in crop protection formulations and which are currently under review by the European Union. Under the new proposed regulation, pesticides containing synthetic polymers are likely to be banned or severely-restricted. In order to solve the problem of microplastics in crop protection formulations, substitution of the problematic plastics must be done with biodegradable alternatives which meet the proposed EU criteria. Reformulated products will need to be evaluated and registered within a five-year transition period. Sustaine is one of the only viable, commercially and technically proven, and immediately registerable solutions to the microplastics problem in formulations requiring encapsulation.
Financial details of the Agreement have not been disclosed due to commercial sensitivity.
Sean Smith, Chief Executive Officer of Eden, said: "We are pleased to expand our relationship with SumiAgro into the central European region, where the markets for grapes and apples, in particular, are large and will help Eden to expand its sales footprint and increase product sales revenues in time. Mevalone is a well-known product which has already been successful in a number of southern EU countries.
We believe that SumiAgro is the right company to act as our commercial partner for Mevalone, given their years of hands-on experience with the product in France, expertise with high value crops - such as grapes and apples - and increasing focus on sustainable solutions, such as Eden's."
Ken Priestley, Corporate Officer of SAE, said: "We welcome the forthcoming addition of Mevalone to our Seipro® range of low impact solutions for our distribution companies in Germany, Poland, Hungary, Czech Republic and Slovakia. Our apple research programme over the last three years has shown that Mevalone offers a reliable new option for growers in control of storage rots."
For further information contact:
Eden Research plc |
www.edenresearch.com |
Sean Smith Alex Abrey |
01285 359 555 |
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Cenkos Securities (Nominated advisor and broker) |
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Giles Balleny / Cameron MacRitchie (corporate finance)
Michael Johnson (sales) |
020 7397 8900 |
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Powerscourt (Financial PR) |
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Nick Dibden Courtney Sanford |
020 7250 1446 [email protected] |
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Sumi Agro Europe Ltd Ken Priestley |
www.sumiagro.com 020 7246 3697 |
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Notes:
Sumi Agro Europe is a Group company of the Agriscience Buisiness Line of Sumitomo Corporation. SAE develops and distributes crop protection, bio-stimulant and nutrition products in Europe.
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 £14m 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 and has been authorised for sale in Malta and Belgium.
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.
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