Eden Regulatory News (EDEN)

8 April 2020

Eden Research Plc

("Eden" or "Company")

Eden's products certified for organic farming in Italy and Spain

Over a billion bottles of organic wine will be consumed globally by 2022 and Eden's products are now certified to be sold in two of the biggest European markets

Eden Research plc (AIM: EDEN), the AIM-quoted company focused on sustainable biopesticides for use in global crop protection, animal health and consumer products industries, is pleased to announce that its foliar biofungicide product Mevalone™, branded "3LOGY®" in Italy and "Araw®" in Spain, has received certification for use in organic farming. The certification, received by Eden's partner Sipcam Oxon S.p.A ("Sipcam"), follows the initial approval of Eden's three EU-registered active ingredients for use in organic farming earlier this year.

Eden's partner Sipcam has been selling 3LOGY and Araw for the primary use of treating and preventing botrytis. Botrytis is a widespread fungal disease that causes grey mould on many fruits and vegetables leading to the rapid loss of commercially valuable crops. Following certification, the product can now also be used in organic vineyards, creating a significant opportunity for Eden to enter a new market. Spain and Italy are in the top three EU countries with the largest organic farming areas; Spain has the overall largest area of permanent crops (e.g. grapes, olives, nuts). More specifically, Spain and Italy each have more than 100,000 hectares of organic grapes harvested across the country, followed by France with over 78,000 hectares. It is anticipated that an equivalent inclusion will soon be received by Eden's partner Sumi Agro in France.

As consumer sentiment for sustainable and organic products has grown in recent years, the European viniculture industry has increased its attention and commitment to sustainability and protecting the environment. Europe will account for 78% of the global organic wine market by 2022, and globally the market is projected to grow at 9.2% CAGR from 2017-22. In the UK, consumers are willing to pay 38% more for organic wine and there is a broad audience of environmentally conscious consumers who now opt for a grape with a greener footprint.

Sean Smith, Chief Executive Officer of Eden, said: "We are pleased to begin selling our products to organic growers in Italy and Spain, a commercial development that will contribute to the enlargement of our addressable market in Europe and to the ongoing growth of sales in these important countries. Sustainable farming practices are clearly a priority for wine producers globally as the organic wine market has increased rapidly over recent years. Italy and Spain are at the centre of the movement, with organic wine production forecast to increase by 70% in Spain between 2018-2023 and Italy's organic vineyards amount for 15.5% of its total vineyards, the highest amount in the world. Our products give organic growers an effective and sustainable solution comparable to conventional chemistry but in a way that is aligned with the fundamental elements of organic production."

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Notes:

Eden Research is an 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

Eden's Sustaine™ 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.

Mevalone is a foliar fungicide which has been authorised for sale in Kenya, Malta, Greece, Bulgaria, Spain, Italy, France, Cyprus, Albania, Portugal and Macedonia.

Cedroz 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.