LONDON (ShareCast) - (Sharecast News) - Eden Research on Monday signed an exclusive distribution agreement for Sipcam to sell grape fungicide product Novellus in Australia and New Zealand.
The biopesticide product supplier said an application for the registration of the product has been submitted to the Australian regulatory authorities and the process is anticipated to be completed in time for the 2020 growing season.

Sean Smith, chief executive of Eden, said: "We are pleased to be taking the first step toward expanding the existing relationship we have with Sipcam, who has already proven to be a good commercial partner for the product in Italy and Spain. We anticipate the further expansion of our relationship with Sipcam in due course as our collaboration continues under the various agreements signed last year."

Novellus, which is used primarily for the treatment of botrytis on grapes, is currently sold in Europe and Africa, with Sipcam already holding exclusive distribution rights in Spain and Italy.

Botrytis fungus affects a variety of plant species, but it is particularly problematic for grape growers due to the rapid progression of the disease and its significant impact on crop yield and wine quality.

"There is a clear opportunity for Novellus to help growers control botrytis in Australia and New Zealand. The fact that Novellus can also be used close to harvest will provide a valuable replacement for iprodione," said Smith.

Iprodione, a rival fungicide, has been removed from sale in Europe and the Australian wine research institute recommends that products containing the substance should not be used on grapes destined for export.

Analysts at Shore Capital, where Eden is a house stock, said: "Today's announcement represents further progress by Eden's management, in our view, in both increasing its distribution of its first commercial product as well as further deepening its relationship with Sipcam."

Eden's shares were up 2.61% at 11.80p at 0945 BST.

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