Eden Research plc

October 26, 2010 02:00 ET

AGM Statement including general update

                                                                                   26 October 2010
                                         EDEN RESEARCH PLC
                                    ("Eden" or  the "Company")

                              AGM Statement including general update

Eden  Research  plc  (PLUSMARKETS: EDE), a leading UK agrochemical development company,  made  the
following  Chairman's  Statement at the Company's AGM which was held last week  in  Wendens  Ambo.
Eden's strategy is focused on the development and commercialisation of terpene-based encapsulation
technology for agricultural and non-agricultural uses.

"In 2009, Eden made a significant number of advances in the commercialisation of its terpene based
encapsulation technology and associated products.  We submitted the final papers to  the  Chemical
Regulatory  Directorate,  the  UK  regulatory body which  enabled  the  submission  of  the  Draft
Assessment  Report  ("DAR") for Eden's first product, 3AEY,  to go to  the  European  Food  Safety
Authority ("EFSA").

This in itself was a significant milestone which occurred in Spring 2010 which also required us to
carry  out one further study aimed at smoothing future passage of approvals for individual  member
states.  We can advise that this additional piece of work has now been commissioned and we hope to
have the conclusion from that work available around the end of this year.  This will be consistent
with  the timetable required by EFSA to meet any further requests on the approval process of  3AEY
in the member states.

A  lot of work started in 2009 which has gone on into 2010.  Most of this has been reported  in  a
variety of formats throughout the year but I think it's important to bring it all together at this
time  as  we  have  a  review  of  the  overall situation.  Firstly,  we  concluded  a  deal  with
Environmental Solutions North Africa ("ESNA") on a licence for 3AEY for North Africa which  has  a
number  of  payment  stages  and which we are in continuing dialogue  with  ESNA  on  the  future.
Secondly,  we  received most encouraging results on the use of new combinations  of  our  existing
terpenes for the control of three particular problems - nematodes, whitefly and mites.

The  nematode  market  is enormous.  It's about $1billion per annum and is  particularly  exciting
because at this time the current control products are facing withdrawal as they are deemed  to  be
damaging  to  the  environment as a whole and so we are filling a vacuum  and  I  don't  think  it
overstates  the situation. As I will report later on, we have encountered substantial interest  in
our products in that market.

The  whitefly and mites market are each worth around $300million per annum.  Interestingly,   what
this  does  is  to give us extremely encouraging signs for further controls of pests and  diseases
that will be in addition to these that we have shown. We will continue to screen as time and money
become available for products and encourage third parties to do that on our behalf.  But, what  is
more  important with the products, in regard to whitefly and mites, is that the unique  aspect  of
our  products in that they can be used not only in an open field situation but also as part of the
integrated  pest management (IPM) systems, because they are non-harmful to natural pest  predators
which  are  used  in IPM procedures. That gives us an added benefit in that we can  control  these
detrimental  pests  without  harming  the  beneficial  insects  that  are  introduced  into  these

Throughout  2009,  negotiations were opened with a number of different companies,  partly  at  our
request  but  partly  by an increasing number of people coming to us as our products  became  more
widely  known.  Ecostyle, which is a Dutch company, approached us and we concluded a deal  in  the
low risk amateur gardener product in early 2010.

The  global  company, Certis, entered into dialogue with us in the middle of 2009  on  potentially
licensing  our  nematicide product and we eventually concluded a deal in June  of  this  year  for
Europe,  Asia, Africa, the Middle East and Oceania with an option deal signed which will bring  in
option and exercise fees of $1million with royalties thereafter which will be significant to come,
at a later stage.

We are in continued, lengthy dialogue with a further partner for the use of our nematicide product
in  South  America and we hope to sign a licence deal with them very shortly.  In  both  of  these
cases,  these  deals have taken much longer than was the practice in previous  years.  This  is  a
factor  of  the times in which we live, where companies are much more particular about  any  deals
they  sign and are more focussed on the financial aspects than they were before. So this just adds
to time delays and makes it painstakingly hard to push the deals through.

We  also concluded a deal with TEVA Animal Health this year which was again started in 2009.  TEVA
is  the world's largest pharmaceutical business and we concluded the deal with their animal health
division  for a licence for North America with an option for the rest of the World, for additional
consideration,  for  veterinary use of our terpenes and encapsulation  technology,  which  adds  a
completely different aspect to where we are going.

What  you can see then is that there is an enormous amount going on, but, what we are also  seeing
is  that the interest and belief in the Eden's encapsulation technology will provide a significant
revenue  stream to Eden in both the short and the long term, and since we announced the submission
of  the  DAR  from  the Chemical Regulatory Department in the UK to EFSA, that  this  has  aroused
significant interest around the world in our products. We have received a number of approaches and
are  in  dialogue with a number of companies in Europe and in the wider world. We have had  recent
meetings  regarding those approaches and continue to attend meetings on a variety of our  products
and, indeed, our encapsulation technology, which is extremely positive.

In  addition  to  that,  we were successful this year in being selected in  two  government-funded
research  projects,  as well as being at the heart of an initiative run by the African  Enterprise
Challenge  Fund.   Particularly  relevant  was that earlier  this  month  Clive  Newitt,  Managing
Director,  presented  a  paper  at the American Society for Testing Materials  conference  in  San
Antonio  where he was able to go through the technology and the products.  Interestingly, at  that
conference another presenter highlighted the value of terpenes as control agents but, ignorant  of
our  platform  technology, pointed out that if anybody could come up with a  platform  technology,
like ours, then this was the solution needed which complimented exactly what Clive was saying  and
aroused further interest from people at the conference.

Finally, we were invited to attend the Growth Company Investor Show held earlier this month  which
I think helps showcase where we are and again substantial interest was shown.

I must also formally record that we re-vamped our personnel as the company has progressed with the
moving  on  of  the  submission of the DAR and are focussed much more clearly  now  on  developing
contracts  and  links with the agrochemical industry.  Clive Newitt assumed the post  of  Managing
Director  of  the company for which we are very grateful and Tim Griffiths moved on and  I  should
formally record our thanks for the work Tim has done in the formative stages of the company.   Now
we  are  moving on to this new stage, I think it's appropriate that Clive assumes that role  using
the wide wealth of contacts he has with agrichemical companies in a global perspective.

Looking  ahead,  there  are two things I want to comment on.  We now feel  the  company  is  in  a
position  to  move  to the AIM market in the early part of 2011 and we would be  looking  at  that
particular  objective in the coming weeks and months to ensure that we have sufficient  capability
to  take on and develop and exploit fully the opportunities that are opening up to us as described

Also  looking  ahead,  we see a continuing number of exciting development opportunities  for  Eden
including further licence agreements for the encapsulation technology as well as the completion of
licensing  deals for some of our products such as the nematodes and also mites and  whitefly,  but
also other opportunities and we continue to look at screening our products. One of the products we
are  looking  at relates to the problems with cabbage root fly and we are talking to  one  company
about doing trials for that.  This is another example, as with nematodes, where products have been
withdrawn and so there is a major problem with cabbage root fly and some of the results from  work
we have done look again as if we may have something of interest in that respect.

So,  I  believe we are now in a much better position to move forward and I think the options  have
become  much  clearer and I hope that in a year's time we will be able to report on a  significant
number of events that have occurred in that period."

The Directors of Eden are responsible for the contents of this announcement.


Eden Research plc                                                        01993 862761
Clive Newitt, Managing Director

St  Helens  Capital  Partners  LLP                                       020 7368 6959
Mark Anwyl

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