News Archive
Update on agreement with Thallo Eco Products Corp
Eden Research plc (OFEX: EDE), a leading UK agrochemical and pharmaceutical company, today announces an update on its agreement with Thallo Eco Products Corp ('Thallo'). Eden focuses on pioneering organic solutions to problems in commercial areas where the current alternatives are not suitable, and is currently conducting trials in the USA, Australasia and the European Union.
As announced by the Company on 29 October 2004,
'In the USA, Thallo, which has been established by people with the relevant experience in commerce and industry, has been appointed as a replacement for Arista Biologics Inc as Eden's Californian distribution partner for an immediate licence fee of US$250,000, with a further $250,000 to be paid on 1 April 2005.'
Due to an on-going renegotiation of the agreement with Thallo, which has arisen from a change in the role that Thallo is to undertake, from distributor to agent to the Company, the licence fees that were due to be paid by Thallo have not, to date, been received by the Company. The original agreement is still in force, albeit subject to the current renegotiations.
The directors believe that the renegotiations will result in similar levels of licence fees being paid by Thallo and potential marketing partners it introduces and, on this basis, included the following statement as part of its Chairman's Statement in the Final Results for the year ended 31 December 2004, which were announced on 31 May 2005,
'The Company has been greatly encouraged by significant third party distribution interest in the USA for its agro-chemical products. To avoid possible conflicts and to optimize exploitation potential, this has lead the Company to seek to restrict expansion of the Thallo licence. Any expansion may well be on a joint venture basis, however the Company remains committed to its partners in Thallo.'
The Company has made significant progress developing data that complies with strict EU regulatory practice and this data will be sufficient to support any potential US marketing partnership negotiations. Therefore, the Company believes that dealing directly with potential US distribution partners is more commercially viable than continuing with the agreement announced on 29 October 2004. Thallo is a recently established company that would need to organically grow and develop the Californian market. Thallo, acting as an agent, will enable the Company to achieve revenues in California in a shorter timeline.
The Company has not included any licence fee income from Thallo in its results for the year ended 31 December 2004.
Further announcements will be made in due course.
The Directors of Eden Research plc accept responsibility for this announcement.