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Eden Bioscience debuts new cotton seed treatment product
Bothell, Washington
January 20, 2005

By Eric Fetters, The Daily Herald via Checkbiotech

The Bothell-based biotech debuts a seed treatment that stimulates growth and enhances a cotton plant's defense mechanisms.

Eden Bioscience Corp., whose fortunes have been tied solely to its Messenger plant enhancer for the past five years, has introduced a seed treatment aimed at cotton farmers.

The Bothell-based biotechnology firm began promoting its N-Hibit Seed Treatment two weeks ago at the U.S. cotton industry's annual conference in New Orleans.

Like Messenger, N-Hibit is based on nontoxic harpin protein technology, which stimulates a plant's growth systems and natural defense mechanisms. In the case of cotton plants, this is useful for fighting off parasites such as nematodes and hookworms.

The microscopic worms are a big headache for cotton farmers, said Bradley Powell, Eden's chief financial officer.

"They live in soil, attach to roots and live off the roots, so they can significantly lower the yield from the plants," he said.

The National Cotton Council of America estimates that nematodes cost the U.S. industry more than a quarter-billion dollars each year in lost production.

N-Hibit apparently makes it harder for the parasites to lay eggs in the cotton plant's roots.

"We are continuing research into the precise biological mechanisms that interfere with the normally prolific egg-laying of nematodes," Rhett Atkins, Eden's president and chief executive officer, said in the product's launch announcement. "But research at the University of Arkansas, Auburn University and by independent research contractors has certainly documented the effectiveness of N-Hibit."

The University of Arkansas research, for example, found that N-Hibit reduced the number of nematode eggs for every cotton plant root by 55 percent. Auburn University reported the treatment increased cotton yield by 4.4 percent, comparable to results from other products.

However, the competing products are more expensive, Eden said.

The United States is the world's second-largest cotton producer, after China, with 13.6 million acres planted in 2004, according to the National Cotton Council. Eden won't know how well N-Hibit does on the market until June, when the planting season is over.

In the meantime, the company is hoping the Environmental Protection Agency will soon clear ProAct, a new plant spray, for sale.

Founded in 1994, Eden won EPA clearance for Messenger in April 2000. Since then, it has struggled to increase sales. In the third quarter of 2004, the company lost $1.9 million, with sales of Messenger totaling $368,000.

In June, the company's stock price slid below $1 and bottomed out at 37 cents before rebounding in recent weeks. On Tuesday, Eden shares closed at $1.21, up 5 cents.

Because the stock has now closed above $1 for more than 10 consecutive trading days, Eden no longer faces the risk of being delisted from the Nasdaq National Market.

Copyright © 2005 The Daily Herald Co., Everett, Wash.

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