viewEden Research PLC

Eden Research in good shape as restrictions tighten on traditional pesticides


Eden Research's first product Mevalone is a grape fungicide used to target the botrytis disease

Grape bunches

Quick facts: Eden Research PLC

Price: 7.75 GBX

Market: AIM
Market Cap: £29.48 m
  • Provides a sustainable solution for crop protection, animal health and consumer products

  • Grape fungicide, Mevalone has regulatory clearance in the top three wine-producing countries worldwide

  • A second product, pesticide Cedroz, has just received product authorisation in Belgium and Mexico


What Eden Research does:

Eden Research PLC (LON:EDEN) provides biopesticides and fungicides for crop protection, animal health and consumer products.

The AIM-listed group is focused on protecting high-value crops, improving crop yields and value.

Products are based upon natural chemistries and cost on par with synthetic pesticides.

Its first product Mevalone, a grape fungicide used to target the botrytis disease, is currently being sold throughout the southern EU zone and Kenya.

Eden Research currently has regulatory clearance in the top three wine-producing countries worldwide.

Distribution agreements have just been signed for Mevalone in Central Europe, Benelux and Portugal to add to France, Italy and Spain.

Its Sustaine delivery technology is also 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.

How’s it doing

For the six months ended 30 June, pre-tax losses narrowed to £645,000 from £940,000 in the same period a year ago despite revenues contracting to £581,000 from £682,000.

The lower losses reflected reduced sales costs, which fell to £250,000 in the period from £479,000 a year ago.

Aside from Mevalone, Eden Research's second product is pesticide Cedroz, which is designed to fight nematodes, a species that is known to cause severe damage to crops globally for both open field and greenhouse growers.

In February, the group noted that its Cedroz commercial partner, Eastman Chemical Company had received EU product authorisation from the Regulatory Affairs Directorate in Malta.

Following the authorisation by Malta, EU member states must grant their individual approvals for the sale and use of Cedroz within their jurisdictions.

In October, Eastman received full authorisation in Belgium for Cedroz, which was the first time any Eden-formulated product had been approved for use in greenhouse applications in Europe and in December the product was approved in Mexico, a first in the Americas and opening up the US market.

Subsidiary TerpeneTech has also had its head-lice treatment approved in Europe.

The product, which the group said “performed very well” in clinical trials, is expected to be launched first in the UK where TerpeneTech already has a distribution partner in place.

What the boss says – Sean Smith, chief executive

"There are multiple, significant opportunities for the use of Cedroz in greenhouse applications which means that the authorisation in Belgium, where the primary use will be in greenhouses, is a very good starting point for authorisations to come in other EU member states,”

Inflexion points

  • Cedroz sales start to ramp up following Belgium and Mexico authorisation
  • Sales come in stronger than analysts predict
  • Ban on chemical pesticides spreads wider, giving Eden's products a lift

What the broker says; Cenkos 

Cenkos has forecast revenues of £2mln for Eden in the 2019 financial year, rising to £3.6mln in 2020 and then £6.6mln in 2021.

However, analysts said they had forecast the company’s figures “conservatively”, and saw the potential for Eden to deliver 2019 revenues of up to £3.5mln depending on various outcomes including “upfront payments, milestones and sales currently dependent upon regulatory approval”.

Blue Sky 

Cenkos says the company’s underlying market is expected to grow at a “high-teen rate” amid increasing global demand for food, reaching a value of around US$9bn by the early 2020s as opposed to US$5bn currently.




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