Eden Research plc (AIM: EDEN; OTCQB: EDNSF), the AIM-quoted company focused on sustainable biopesticides and plastic-free formulation technology for use in the global crop protection, animal health and consumer products industries, announces that it has received regulatory approvals for its formulated products Cedroz™ in California and Mevalone® and Cedroz in Florida.
These approvals follow regulatory authorisation from the United States Environmental Protection Agency (EPA) in September 2022 for all six petitions submitted by Eden (three active ingredients, two formulated products and Eden's Sustaine® polymer-free encapsulation technology; making up the building blocks of current and future products), opening up significant revenue opportunities for the company with a market potential in the US of approximately €94 million for Mevalone and €189 million for Cedroz.
It is expected that meaningful product sales will begin in time for the 2024 growing season and estimated that peak market penetration will be reached after three years. Potential sales in the US, as a whole, are estimated to be c.€2.8m for Mevalone and €5.7m for Cedroz, based on peak sales and a full label of all key target diseases and crops.
California and Florida are key areas of focus given the prevalence of high value horticultural crops where Eden's products are highly effective - including tomatoes, cucumbers, strawberries, oranges and grapes.
Mevalone® has been approved in Florida for use on botrytis on table and wine grapes.
Cedroz™ has been approved in California and Florida for use on all relevant species of "nematodes" on fruits and vegetables including eggplant, peppers, tomatoes, cantaloupes, cucumbers, pumpkins, squash, zucchini, carrots, strawberries, and grapes, in the following states: California, Florida, Georgia, Michigan, New York, Oregon, Texas, Washington, and Wisconsin. Nematodes are microscopic worms, and some species are plant parasites which can dramatically affect plant health and yield.
Eden's application for regulatory approval in California is still in progress, with clearance expected to be received soon.
Regulators around the world have banned a rapidly growing number of commonly used conventional chemical pesticide products in recent years and, as a result, farmers need effective alternatives to maintain yields and keep up with growing demand for safe, sustainable food production. Biopesticides, such as Cedroz and Mevalone, are rapidly becoming the standard for farmers looking adopt more environmentally friendly practices. Eden's products are based on naturally occurring compounds that make up part of a plant's own defence system and are effective, sustainable and safe without contributing to pesticide residues in food or persistence in the environment. They are also free of intentionally added microplastics.
Sean Smith, Chief Executive Officer of Eden Research plc, commented:
"California and Florida are amongst the most significant addressable markets in the US considering their production of high value crops. These approvals represent another important step in Eden's expansion into the United States, the world's second largest food market. We look forward to sharing progress of our other applications in individual states from across the US in due course."
"As a small but innovative British business, we are proud of the impact that Eden can have on the global stage. Our pioneering products and technologies are receiving regulatory approval and being distributed by our partners across Europe, Africa and now North America, accelerating change in the sustainable agricultural space globally."