RE: Mike Walters Report11 Feb 2017 20:42
Part 2.
...after the conclusion of the important agreement which brought US global giant Eastman in as partner to carry Eden's all-natural terpene-based nematicide to market. That will eventually be very big. Rather than pay Eden a hefty upfront fee, Eastman has undertaken to meet the costs of carrying Cedroz, as the product will be called, through the regulatory process in 29 countries around the world.
This might not put a big slug of cash into Eden's balance sheet, but is enormously valuable, removing from Eden the burden of costs which could run into millions of dollars. Eden has gained an upfront payment, and will receive more as Cedroz moves closer to market in 2019.
Approval of 3AEY in France is the latest important piece of the jigsaw which will see Eden's natural products using a slow-release system gaining ground across a steadily widening section of the agro-chemical market. Trials have established that different combinations of Eden's natural terpenes at least match most chemical rivals in efficacy in many applications, while beating them significantly on the safety front.
Proving this to the satisfaction of regulators in different parts of the world can be a slow process, dictated in part by the passage of the seasons. Eden now has products up and selling, however, supported by giant companies like Sumitomo, with Eastman to follow. There will be a steady expansion of the geographical areas where they are accepted for use - look at North and South America, Switzerland, Australia and South Africa to come - and a move into much broader areas of application. Terpene combinations, married to the slow-release system, will tackle a greater range of pests and diseases, and will be applied to many more crops. There have already been label extensions for 3AEY, widening use in several countries.
Clearly there must come a point at which Eden products reach North America, though markets there are tricky because of variations in regulation from state to state. The approval process might, however, run to 18 months or so, against the several years it has taken in Europe. In some cases, data from European tests and applications will help in overseas approvals.
There should be one or two more pieces of good news in the first quarter, and the wait continues for the launch of four animal health products in the US by global giant Bayer. This long-running dream has been on the cusp for years, and is suffering the predictable hiatus which tests every small company whose bright ideas disappear into the black hole of corporate bureaucracy. The prospect still appears to be alive, and was once expected in the first part of this year (or the year before, or maybe one before that).
Animal health is one of several areas alongside agro-chemicals where Eden could have an advantage, and the chance of something previously unexpected is always alive. And perhaps Eden's technology could be adapted to extend the life of fading patents elsewher
Sign In
Follow the stocks
