TIDMEDEN
RNS Number : 4124S
Eden Research plc
21 December 2016
Eden Research Plc
("Eden" or "Company")
Year-end trading update
Eden Research plc (AIM: EDEN), the AIM-listed company that
provides breakthrough natural bio-control products and
microencapsulation technologies to the global agrochemicals, animal
health and consumer products industries, provides the following end
of year trading update.
2016 has seen the first sales of 3AEY in Italy (where it is sold
as 3logy(R)), Greece (Mevalone(TM)), Kenya (Hawk(TM)) and Spain
(ARAW(R)). In total, sales of 3AEY at distributor level are in
excess of EUR1m with over 85,000 litres sold in those territories.
Sales were somewhat above what we and our partners had forecast.
This is encouraging particularly as botrytis, which is the fungal
disease that 3AEY targets, was not especially prevalent this season
in most regions. In some areas, 3AEY achieved a market share of
approximately 20%, which is a very good result for a new product to
market.
In 2016, it was from partners' sales of 3AEY from which Eden
derived its revenue in the form of royalties. However, it is
intended that from 2017 onwards Eden itself will supply its
partners with product in most if not all of the above territories,
as well as other countries where 3AEY is to be marketed in the
future.
Sales of 3AEY are expected to start in France in 2017, subject
to regulatory approval, which is still pending. In Portugal, the
position is less clear as the regulatory authorities there are, in
general, very slow in granting product approvals. The impact on
overall sales to Eden is, however, not material at this stage.
Based upon our understanding of the timescales involved, it is
hoped that approval will be granted in Portugal during the course
of 2017, though it is unclear as to whether this will happen early
enough to allow for sales of 3AEY in the 2017 season. Approvals of
3AEY are also expected in several new territories. Further updates
on these pending approvals will be provided in due course.
Overall, the Company is encouraged by the level of sales of 3AEY
and its acceptance into the market. In 2017, we expect to see an
increase in sales as market share increases in those countries
where sales have already taken place and sales start in new
territories.
Eden today announced that it has signed an agreement with
Eastman Chemical ("Eastman") which has granted them the exclusive
right to develop the market for Eden's nematicide formulation,
which will be marketed by Eastman as 'Cedroz(TM) '. As part of the
agreement, Eastman will pay Eden an upfront fee, as well as annual
milestone payments until 2019 when it is expected that sales will
commence. Eastman will also take on the responsibility for the
registration of Cedroz(TM) in each territory covered by the
agreement whilst Eden retains responsibility for the registration
of the active ingredients and will supply Eastman with its product
requirements. The agreement covers 29 countries including the
largest markets for nematicide products globally.
Revenue for the year ended 31 December 2016 is currently
expected to be in the region of GBP0.4m with an EBITDA loss for the
year of approximately GBP1.1m. Eden's cash position is expected to
be approximately GBP1.4m at the end of 2016. The evolution of
Eden's business model in 2016 from technology licensing to product
sales has resulted in lower upfront payments, which coupled with
the delay in receiving regulatory approval in certain territories
has impacted earnings in the 2016 financial year. However, the
Board remains confident in the new business model and believes that
it will lead to greater returns in the medium and longer term.
Eden Research plc www.edenresearch.com
Sean Smith, Chief Executive Tel: 01285 359 555
Officer
Alex Abrey, Chief Financial
Officer
Shore Capital and Corporate www.shorecap.com
Limited
Stephane Auton/Patrick Tel: 020 7408 4090
Castle
Walbrook PR Ltd Tel: 020 7933 8780 or eden@walbrookpr.com
Paul McManus Mob: 07980 541 893
Lianne Cawthorne Mob: 07584 391 303
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.
With leading consultants in their respective fields, the Company
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 GBP12m 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 represents 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 and Italy.
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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