11th Aug 2014 08:28
LONDON (Alliance News) - Eden Research PLC shares were given a boost on Monday after the company said it has signed an evaluation agreement with Belgian speciality chemicals firm Taminco BVBA for its nematicide product.
Shares in Eden were up 11.4% to 8.075 pence early Monday, putting it among the top five risers on AIM.
Eden, the natural micro-encapsulation firm, said the deal will give Taminco the right to evaluate nematicide's use for crop protection until December 31, 2014. Nematicide is a chemical pesticide used to kill plant-parasitic nematodes, or roundworms.
Eden said it anticipates that, in the case of a successful evaluation and a strong business plan being put forward for the product, the pair will negotiate a global licensing agreement which would allow the commercialisation of nematicide which would use Eden's active ingredients and its natural encapsulation technology, GO-E Inside.
"The market for nematicides is worth around $1 billion per year at grower level and, in recent years, has seen a significant number of effective products being removed from sale due to their risk profiles," said Eden Managing Director Clive Newitt.
"Eden has created an effective, natural alternative to replace some of these products' uses which we believe Taminco will be able to commercialise alongside their existing soil fumigant business in order to fully exploit this opportunity," Newitt added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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