Regulatory Approval- Organic Production Regulation

RNS Number : 9140Y

Eden Research plc

07 January 2020

 

7 January 2020

Eden Research plc

("Eden" or "Company")

Eden's three EU-registered active ingredients approved in Organic Production Regulation

Eden Research plc (AIM: EDEN), the 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, is pleased to announce that its three EU-registered active ingredients, geraniol, eugenol and thymol, have all been approved for use in organic farming following inclusion in the EU's Organic Production Regulation.

Organic farming covered 12.6 million hectares of agricultural land in the EU Member States in 2017, equivalent to 7% of the total utilised agricultural area. Between 2012-2017, land assigned for organic growing within these Member States increased by 25%. In Italy and Spain, the conversion rates from conventional to organic agriculture grew by over 60% with the share of organic production totalling 15.2% and 13.9% respectively.

Pursuant to this approval, Eden's products will provide organic growers with the high levels of efficacy often associated with conventional chemical pesticides, thereby providing the Company's growers with another alternative and sustainable solution.

Sean Smith, CEO of Eden Research commented: "We are very excited by this approval for EU organic farming as this opens up a new commercial opportunity for Eden which is relevant to all of the products that we have developed and continue to develop using our three EU registered active ingredients.

"It is clear that there is growing demand from consumers within the EU for organic products and this is matched by rapidly growing production. Consequently, areas assigned by EU Member States for organic agriculture have grown by 70% in the last ten years^* with organic retail sales reaching €34bn in 2017."

For further information contact:

Eden Research plc	www.edenresearch.com
Sean Smith Alex Abrey	01285 359 555
Cenkos Securities (Nominated advisor and broker)
Giles Balleny / Cameron MacRitchie (corporate finance) Michael Johnson (sales)	020 7397 8900
Powerscourt (Financial PR)
Nick Dibden Courtney Sanford	020 7250 1446 [e-mail]

* A report from the European Commission into Organic farming in the EU, published March 2019.

https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/farming/documents/market-brief-organic-farming-in-the-eu_mar2019_en.pdf

Notes:

Eden Research is an 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

Eden's Sustaineä 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.

Mevaloneä is a foliar fungicide which has been authorised for sale in Kenya, Malta, Greece, Bulgaria,

Spain, Italy, France, Cyprus, Albania, Portugal and Macedonia.

Cedrozä 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.

For more information about Eden, please visit: www.edenresearch.com.

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