News Archive
Agreement Signed with Major Distributor
EDEN GRANTS RIGHTS TO REDESTOS TO LICENSE AND DEVELOP PLANT, SOIL AND POST- HARVEST TREATMENTS
Eden Research plc, a leading UK agrochemical company, is pleased to announce that it has granted rights to a licence and development agreement with Redestos S.A., Thessaloniki, a Greek Holding company that owns K & N Efthymiadis S.A., a leading international producer and distributor of plant protection products in the licensed territories, for rights to Eden's products.
Under the terms of this agreement, Redestos has acquired the rights to an exclusive licence to develop, manufacture and market Eden's products for the treatment of plant diseases, soil infestations and post-harvest treatments in Greece, Cyprus, Portugal, Turkey, Bulgaria, Romania, Serbia, Montenegro, Albania and the Former Yugoslav Republic of Macedonia. Redestos will provide Eden with an initial upfront consideration of 150,000 euros, annual minimum payments and royalties of 17.5% on sales in the first 5 years and 15% thereafter.
The first product to be marketed under this agreement will be Eden's encapsulated fungicidal product for the treatment of botrytis, with anticipated revenues commencing in 2007.
In addition, Eden and Redestos have entered into a joint development agreement under which Eden will provide Redestos with a full dossier for product registration in Greece for its treatment of botrytis in grapevines, and Redestos will undertake efficacy trials and national registration for all territories outside Greece for treatment of botrytis in grapevines and all other crops. The registration for other crops in Greece will be covered by the efficacy data generated in these additional territories.
The worldwide market for treatment of botrytis, a fungal pathogen that infests and destroys crops, is approximately *188 million (data source: FAOSTAT database of the Food and Agriculture Organization of the United Nations), and the territories covered under this agreement represent approximately 8% of that market.
For other plant diseases or pest control treatments that Eden is involved with, Eden will provide toxicity and efficacy data in one territory state, and Redestos will provide further efficacy data and undertake registration to extend the product label for use in their territories for all significant crops.
Commenting on the deal, Eden CEO Tim Griffiths said:
"We are delighted to be partnering with Redestos for the development and commercialisation of our products. As a leading distribution company in Greece and the Balkans, they are uniquely placed to maximise the potential of our products in these significant and expanding markets." Griffiths stated: "This collaboration marks an important achievement for Eden as it is the first step in the commercialisation of our product portfolio."
Redestos Chairman Nikos Efthymiadis said:
"This agreement provides us with access to some exciting opportunities. Eden has developed unique products that potentially have a broad market appeal, and we look forward to working with them to achieve commercialisation."
For further information:
| Tim Griffiths, Chief Executive | Eden Research plc | Tel: 01993 868844 |
| Jonathon Brill /Caroline Stewart | Financial Dynamics | Tel: 020 7831 3113 |
The Directors of Eden Research accept responsibility for this announcement