Dec. 22, 2016
Eden Research plc (EDEN) recently announced that it has signed an exclusive commercialisation agreement (“Agreement”) with Taminco BVBA, a subsidiary of Eastman Chemical Company’s global crop protection division (“Eastman”), following a series of successful field trials and market evaluations conducted by Eastman from 2014 through 2016.
The Agreement grants Eastman the exclusive right to develop the market for Eden’s nematicide formulation, which will be marketed by Eastman as ‘Cedroz™’. 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 take on the responsibility for the registration of Cedroz™ in each territory whilst Eden retains responsibility for the registration of the active ingredients and will supply Eastman with its product requirements globally. The agreement covers 29 countries including the largest markets for nematicide products globally.
Nematodes are a major category of plant pest that cause an estimated $300 million of damage per year in Europe alone. Most major crops are affected by nematodes with particular damage being done in the high value fruit and vegetables segment. This segment of the nematicide market is in the region of $550m globally. Given the withdrawal and restriction in use of a number of key products that were well established in the market, Eden and Eastman are optimistic that CedrozTM will become an effective tool for growers whose options are becoming limited when facing the issue of nematode control.
Aside from its efficacy, Cedroz™ benefits from the fact that its active ingredients are exempt from Maximum Residue Level (“MRL”) limits in the European Union. This translates into a clear benefit for growers when considering treatment programmes, as Cedroz™ can be used without regard to concern for residues, thus allowing growers to protect their crops right up to the point of harvest.
Sean Smith, Chief Executive Officer of Eden, said: “We have been working together with Eastman in the evaluation of our nematicide product since 2014. They have been an excellent partner and have invested significant resources to demonstrate the usefulness of our technology in the treatment of nematodes. Eastman has been a leader in nematode control for several decades, and through their market development of Cedroz™, they will extend this position and grow in the important post-fumigant nematode control market with an effective and safe bio-control product developed by Eden. Eastman’s global reach and the robust, versatile and unique technology and formulation expertise that Eden has provided should produce a strong solution for growers challenged with the control of these pests that affect global agriculture by lowering crop yields.”
Guy Van Den Bossche, General Manager of Eastman’s crop protection division, said: “Eastman is a speciality chemical company, which includes being a leading supplier in soil disinfection products for high value crops. We are constantly looking for new innovative products which make a difference for our customers. This collaboration with Eden around Cedroz™ perfectly reflects our market driven approach. CedrozTM is a product with a green profile and we have seen a consistent effectiveness in the extensive testing programme done. We believe that Cedroz™ will be a very valuable product in the toolbox of the farmer. CedrozTM responds to the market trends of growing crops in a more sustainable way.”