Interim Results

29 September 2017

Eden Research plc (AIM: EDEN), the AIM-listed company that provides breakthrough biocontrol products and natural microencapsulation technologies to the global agrochemicals, animal health and consumer products industries, announces its interim results for the six months ended 30 June 2017.

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Financial highlights

Revenue for the period increased to £1.03m (H1 2016: £0.11m)
Operating Profit for the period increased to £0.21m (H1 2016: loss of £0.86m)
Cash and cash equivalents of £3.66m (H1 2016: £2.01m)
Strategic investment of £2.2m by Sipcam and placing of £0.2m (gross) to institutional investors
Expanding investment in regulatory clearances unlocking commercial potential in new, important territories

Business highlights
Commercial, Regulatory and IP:

Multiple commercial agreements signed with Sipcam SpA (Sipcam) including an Evaluation and Option Agreement for which a fee of €0.6m (£0.5m) was paid to Eden, establishing a long term collaborative partnership
EU approval of Eden’s first agrochemical, fungicide product, 3AEY, gained in France and first commercial sales achieved
Further EU approvals received in Cyprus, Albania and Portugal (post period end)
Label extensions received in Kenya now include authorisation for the treatment of roses
Extension of 3AEY patent protection in Spain, Greece and Cyprus and nematicide patent granted in US
New terms agreed with University of Massachusetts Medical School (“UMMS”) for licence to next-generation technology

Operational highlights:

Lykele van der Broek, former COO of Bayer Crop Science and former Head of the Animal Health division of Bayer Health Care, to be appointed as a Non-Executive Director and Chairman Designate of the Company from 1 October 2017 and Chairman with effect from 1 January 2018
Tom Lupton to retire as Chairman and Non-Executive Director on 31 December 2017

Tom Lupton, Chairman, commented:

“Eden has achieved a successful first half performance. A significant volume of our first plant protection fungicide, 3AEY, has already been sold by our partners in France, Greece and Kenya with on-going sales in Italy and Spain in the second half of the year. While it is too early to predict the impact of climate and overall conditions on sales, we are pleased to say that interest in 3AEY has been steadily growing, and we expect this to translate into increasing market share as time, regulatory approvals and growing conditions permit.

During the period, we successfully concluded a series of commercial agreements with one of our existing partners, Sipcam SpA, who paid us a fee of €0.6m for certain rights to Eden’s agrochemical products in a number of important territories. Additionally, Sipcam made a strategic investment in Eden subscribing to £2.2m in new shares and consequently has become a significant shareholder with a 9.9% stake in the Company.

On 21 December 2016, we announced an exclusive distribution agreement with Eastman Chemical for our nematicide product to be marketed by Eastman as CedrozTM in nearly thirty countries across the world. Progress during the first half of 2017 has been made in registering Cedroz in a number of territories and we look forward to working closely with Eastman to maximise the potential for Cedroz from first commercial launch.

We are now beginning to see the result of our investments in commercial relationships, intellectual property, technology and regulatory approvals. These investments, along with our evolving business model will continue to fuel growth. Whilst we will continue to leverage our assets into new regulatory approvals and territories and growing sales, we are increasingly focused on developing our capabilities to support future growth.

Having been with Eden since 2012, I have watched its evolution from early stage development to commercial stage, with great prospects and the right team in place to fully exploit the technologies and products and that have been developed over the years. I believe that the time is now right for me to retire and am pleased that I am passing the role of Chairman to Lykele van der Broek, who has the necessary experience to support the executive team and lead the Board through this new and exciting stage that the Company has reached.

I would like to thank my colleagues and our shareholders for their support during my time at Eden and wish the team at Eden all the best for the future. I will continue to watch with a keen interest as the business continues to grow and flourish in the coming years.”

A presentation for analysts will be held at 9.00am this morning at Powerscourt’s offices, 1 Tudor Street, EC4Y 0AH.

Enquiries:

Eden Research plc	www.edenresearch.com
Sean Smith, Chief Executive Officer	Tel: 01285 359 555
Alex Abrey, Chief Financial Officer

Shore Capital and Corporate Limited	www.shorecap.com
Stephane Auton/Patrick Castle	Tel: 020 7408 4090

Powerscourt	eden@powerscourt-group.com
Samantha Trillwood	Tel: 020 7250 1446
Nick Dibden

Notes:

Eden Research is a technology development and commercialisation company with intellectual property and expertise in encapsulation, terpenes and environmentally friendly technologies to provide naturally occurring solutions for the global agrochemicals, animal health, and consumer product industries.

Eden’s encapsulation technology harnesses the biocidal efficacy of naturally occurring chemicals produced by plants (terpenes) and can also be used with both natural and synthetic compounds to enhance their performance and ease-of-use. The technology uses yeast cells that are a by-product of numerous commercial production processes to deliver a slow release of natural compounds for agricultural and non-agricultural uses. Terpenes are already widely used in the food flavouring, cosmetics and pharmaceutical industries.

Historically, terpenes have had limited commercial use in the agrochemical sector due to their volatility, phytotoxicity and poor solubility. Eden’s platform encapsulation technology provides a unique, environmentally friendly solution to these problems and enables terpenes to be used as effective, low-risk agrochemicals.

Eden is developing these technologies through innovative research and a series of commercial production, marketing and distribution partnerships.

The Company has a number of patents and a pipeline of products at differing stages of development targeting specific areas of the global agrochemicals industry. To date, the Company has invested in the region of £12m in developing and protecting its intellectual property and seeking regulatory approval for products that rely upon the Company’s technologies. Revenues earned by the Company have been modest whilst the Company has concentrated on securing patent protection for its intellectual property, gaining regulatory approvals, identifying suitable industrial partners, and entering into commercial agreements.

In May 2013, the three actives that comprise Eden’s first commercial product, 3AEY, were approved as new ingredients for use in plant protection products. This represented a major milestone in the commercialisation of Eden’s technology and is a significant accomplishment for any company. To illustrate this point, one should note that in all of 2013, Eden’s approvals represented 3 of only 10 new active ingredients approved by the EC.

3AEY has been authorised for sale in Kenya, Malta, Greece, Bulgaria, Spain, Italy, France, Cyprus, Albania and Portugal.

Eden was admitted to trading on AIM on 11 May 2012 and trades under the symbol EDEN.

For more information about Eden, please visit: www.edenresearch.com

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