Eden Research gets product approvals in California and Florida

12th May 2023 10:56

(Sharecast News) - Biopesticides developer Eden Research announced the receipt of regulatory approvals for its formulated products 'Cedroz' in California, and 'Mevalone' and 'Cedroz' in Florida on Friday.

The AIM-traded company said the approvals came after the United States Environmental Protection Agency (EPA) authorised six petitions submitted by Eden in September last year, opening up substantial revenue opportunities with a US market potential of around €94m for Mevalone and €189m for Cedroz.

Sales of the products were expected to begin in time for the 2024 growing season, with peak market penetration anticipated after three years.

Combined potential sales in the US were estimated at around €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 were described as "essential markets" for Eden's products, due to the prevalence of high-value horticultural crops, including tomatoes, cucumbers, strawberries, oranges, and grapes.

Mevalone was approved in Florida for use on botrytis on table and wine grapes, while Cedroz was approved in both California and Florida for use on various nematode species affecting fruits and vegetables, including eggplant, peppers, tomatoes, cantaloupes, cucumbers, pumpkins, squash, zucchini, carrots, strawberries, and grapes.

"California and Florida are amongst the most significant addressable markets in the US, considering their production of high value crops," said chief executive officer Sean Smith.

"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."

Smith said that as a "small but innovative" British business, Eden Research was "proud" of the impact it could 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."

At 1018 BST, shares in Eden Research were up 5.98% at 4.5p.

Reporting by Josh White for Sharecast.com.