Lachlan Kenya to sell Eden Research’s 3AEY fungicide

Eden Research plc recently announced that its partner, Lachlan Kenya Limited, has received approval to commence sales of 3AEY in Kenya (where it will be sold under the trade name Hawk®).  3AEY is a fungicide formulated from plant-derived actives and a natural microencapsulation system that primarily targets Botrytis on various edible and inedible crops.

The approval allows Lachlan to sell 3AEY into markets in Kenya through its distribution network.  Lachlan will initially be targeting the treatment of peas, beans and cucurbits (i.e. the plant family which includes cucumbers, squashes, pumpkins, courgettes and various melons) before expanding into the cut flower market for export to Europe and further afield.  Kenya exports over $500 million of cut flowers each year with over 125,000 tonnes of products shipped and flown around the world, with a significant amount going to the major supermarkets in the EU.

Under the existing licence agreement between Eden and Lachlan, Eden is now due a milestone payment and will receive royalties based on net sales of 3AEY. Eden will also supply Lachlan with 3AEY from the UK using its network of toll manufacturers and suppliers and has received an initial order to provide enough 3AEY to treat an area of approximately 1,667 hectares.

Sean Smith, Chief Executive Officer of Eden, said: "The approval in Kenya, the order from Lachlan, and the subsequent sales of 3AEY are all key milestones which represent Eden's progression from being an IP development company to a commercial operation.  We expect that growers, retailers and consumers will all appreciate and benefit from the safety and efficacy of our naturally-derived plant protection products. We eagerly anticipate the arrival of the first produce treated with 3AEY in the UK and the rest of Europe as an exciting milestone for Eden and our shareholders.

"This is the first commercial order for 3AEY which will generate product sales revenue and royalties.  We expect this to be the first of many such orders not only from Kenya, but also from our other partners in Europe in due course."

Richard Stone-Wigg, Chief Executive Officer of Lachlan, said: "Lachlan has been working with 3AEY for a number of years and we have been very impressed with its safety profile and efficacy. Marketing trials with customers have confirmed this, and we are pleased to now be in a position to get this product into a market which is demanding zero pesticide residues, especially on exported fresh produce to Europe."