Oxford’s Eden Research expects revenue to rise by 50 per cent

Oxfordshire-based agritech firm Eden Research has reported it expects a rise in revenue of around 50 per cent, taking it to £1.8 million, in an unaudited trading report for the year ended 31 December 2022.

This would be £0.1 million, or 6 per cent, ahead of market expectations of £1.7 million. The company has also reported an expected increase in product sales of 55 per cent, taking them to £1.7 million, which would be £0.3 million, or 21 per cent, ahead of market expectations of £1.4 million.

This has carried over to a better than expected loss before tax of approximately £2.8 million, which is £0.3 million, or 10 per cent, ahead of the market expectation of a £3.1 million loss. A cash position at the year end of £2 million, however, was nine per cent, or £0.2 million, below the market’s expected £2.2 million.

Eden Research is focused on developing sustainable biopesticides and plastic-free formulation technology for use in the global crop protection, animal health and consumer products industries.

The firm has said that, despite hot and dry growing conditions in the main markets for its Mevalone fungicide product, which reduces the need for it, label expansion and authorisations in new territories has led to significant increases in the volume and value of product sales compared to 2021.

As we reported in September of last year, Eden Research was granted EPA approval in the United States for three active ingredients and two formulated products – Mevalone and Cedroz. In turn, Eden has applied for state-level authorisation in a number of states including Florida, Washington, Oregon and California.

These have already been granted in a number of states with further authorisation expected this year, including California – Eden’s largest market. These considerations together have led Sipcam Agro USA, Eden’s US distribution partner to place its first order for Mevalone in time for the growing season, which was fulfilled last month (December 2022), marking Eden’s first product sales in the US crop protection market.

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In May 2021, Eden entered into a partnership with Corteva Agriscience, a leading agricultural inputs company, through an exclusive agreement for the commercialization, supply, and distribution of their first seed treatment product.

The companies have collaborated for the past two years, conducting field trials and other development work, and are currently compiling the necessary information to submit for approval of the product in the European Union and other selected territories. This is hoped to be in time for the 2024 growing season, however that is contingent on the progress and successful registration of the product.

Eden has also reported encouraging results in field trials for its insecticide candidates, and has agreed a final formulation as well as entering into testing agreements and sending trial-scale samples to a number of organisations undertaking their own trial work, with early results reported to be in line with the company’s own.

In addition, Eden is pursuing further opportunities in seed treatments beyond the current Corteva agreement, as well as developing a new fungicide that is expected to target important new markets.

Sean Smith, Chief Executive Officer of Eden Research plc, said: “I am happy to share with you the news that 2022 has been a productive year during which we feel that the foundations have been laid for significant growth across our expanding crop protection business.

“It is gratifying to have received the various approvals in the US which, for a company of our size, is an unprecedented achievement. The significance of this accomplishment has resonated across the industry, and I would like to take this opportunity once again to thank everyone at Eden for all of their hard work and persistence in helping us to realise this ambition.

“Our task ahead is to ensure that we fully exploit this opportunity by obtaining additional regulatory approval in individual states and maximising our sales and distribution potential within each as quickly as possible.

“In 2022, we strengthened several of our key relationships and made progress in unlocking unrealised potential in current and new markets.  A good illustration of this is our appointment of Corteva France as our exclusive distribution partner for Mevalone in France. 

“Working together, we have identified potential additional disease targets that would significantly grow our business in this key grape growing country.  Subject to regulatory approvals, we expect that these new opportunities will expand the size of our Mevalone business in France substantially in the years to come, and we look forward to Corteva’s product launch in 2023 with in-country sales already expected to exceed previous years. 

“In 2023, we expect to announce new partnerships and further broaden our existing relationships, leveraging our network to support Eden’s ongoing growth, even as we add to our addressable markets through regulatory action and new product introductions.

“Eden is fortunate to have multiple significant opportunities to pursue in 2023 and beyond, and we will continue to work hard to develop our business and the Company for the benefit of our shareholders, partners and employees."

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