Eden Regulatory News (EDEN)

20 December 2018

Eden Research plc

("Eden" or "Company")

Sipcam exercises Option for new distribution agreements in additional territories

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 its commercial partner, Sipcam Oxon SpA ("Sipcam") has exercised the option it holds in all of the territories covered by, and pursuant to, the Evaluation and Option agreement the two parties signed, as announced on 30th June 2017.

By exercising its option, and following Eden's receipt of the €0.9m option exercise fee, Sipcam will be appointed exclusive distributor of Eden's first fungicide product, known as Mevalone, in the USA, Brazil, Mexico, China, Argentina, Chile, Japan, and South Africa. Mevalone, which is currently sold throughout Europe and in Kenya, will be marketed by Sipcam following receipt of the requisite approvals in each country. Eden recently announced the appointment of Sipcam as its exclusive distributor of Mevalone in Australia and New Zealand, thereby bringing the total number of countries in which Sipcam is Eden's distributor to twelve. Sipcam is already the exclusive distributor of Mevalone in Italy and Spain (where it is sold as 3logy® and Araw®, respectively), and therefore has good product knowledge and insight into the grape fungicide market, making it well-positioned to commercialise Mevalone in new markets. The new distribution agreements covering China and Japan will mark Eden's first entry into the Far East and presents a significant opportunity as China is the largest grower of grapes in the world.

Sipcam will be able to sell Mevalone on an exclusive basis, primarily for the treatment of botrytis on grapes. Botrytis is a fungus that affects many plant species, but it is particularly problematic for grape growers due to the rapid progression of the disease and its significant impact on crop yield and wine quality. Mevalone has been proven to be highly effective in the fight against botrytis, and its efficacy compares favourably with the conventional chemical products that currently dominate the botryticide market, but without the concerns of pesticide residues, long pre-harvest intervals or disease resistance. 

In addition to the new distribution agreements to be signed by the two parties, collaboration work continues with Sipcam in respect of Eden's natural microencapsulation technology, Sustaine™, which is being assessed for synergy with a number of active ingredients used in crop protection. Using the Sustaine technology potentially brings a number of advantages to existing conventional and natural active ingredients such as enhanced efficacy, formulation stability, patent protection, time-release and resistance management.

Sean Smith, Chief Executive Officer of Eden, said: "We are pleased that Sipcam wishes to expand the footprint it has to sell Mevalone in a number of additional territories which shows the confidence and belief that Sipcam has in 3logy and Eden's Sustaine technology.

"The United States, for example, is the largest market in the world for crop protection products and is a major producer of grapes. It is also the fourth largest wine producer in the world. We are pleased to be partnering with Sipcam to tackle the US market, as Sipcam has an experienced team in the US and is well-placed to commercialise Mevalone following receipt of regulatory approval. We anticipate authorisation at the national level in 2019 for our first two products, including Mevalone and our nematicide."

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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.

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 £13m 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 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 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, Italy, France, Cyprus, Albania and Portugal.

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.