Annual Report and Accounts 2010/11 - Cancer Research UK

Our finances
(continued)
Subsidiaries and related parties
Activities in furtherance of our objectives
Cancer Research Technology Ltd (CRT) is a wholly-owned
subsidiary. Its principal activity is to hold, develop and exploit
intellectual property rights arising from research funded by the
Charity and others to ensure that any discoveries that could
lead to new drugs, diagnostics or vaccines reach the clinic by
the most effective development route. These activities help us
ensure our findings are used to improve the lives of people
with cancer. CRT had a satisfactory year, with revenues
maintained at £33 million (2010: £33 million) including Charity
grants to support the CRT Laboratories of £7 million (2010:
£7 million), and a profit on ordinary activities of £2.2 million
(2010: £2.5 million). CRT’s taxable profits are returned to the
Charity as a Gift Aid payment. Any accounting profit above
this is retained by CRT to support ongoing research.
Financial performance has been sound during the year, but
it is unlikely that the current level of royalties from the flagship
product, temozolomide, will be maintained as patents on the
drug have started to expire. Based on the potential of other
products in the most advanced stage of clinical development,
the financial prospects for CRT are considered to be healthy
in the longer term, although it could well be a challenging
financial climate in the shorter term. CRT and its US subsidiary,
CRT Inc, remain well placed to fulfil their aim to make sure
publicly-funded research brings the maximum benefit to
people with cancer.
The Beatson Institute for Cancer Research The Institute’s
existing portfolio of activity and future plans are in complete
alignment with the Charity’s research strategy. As a core
funded Institute it has developed a distinct approach to
support high quality science and world-class facilities.
The Institute provides an outstanding environment to support
the training and development of basic and clinical scientists.
In addition, it has supported its partners at the University
of Glasgow and the Beatson West of Scotland Cancer Centre
to obtain recognition as the Cancer Research UK West of
Scotland Cancer Centre. This will enable the partnership
to deliver outstanding basic and translational research.
UKCMRI Ltd is a UK registered charity and limited company
formed to manage the creation of UKCMRI (to be known as
The Francis Crick Institute). Cancer Research UK owns 26.26%
of UKCMRI Ltd alongside the other partners – the Medical
Research Council, University College London, and the
Wellcome Trust.
During the year, the four partners signed a Joint Venture
Agreement, establishing UKCMRI as an independent charity.
Prior to that, the four partners jointly owned UKCMRI
Construction Ltd. Once UKCMRI Ltd had been established
as an independent charity, UKCMRI Construction Ltd became
a wholly-owned subsidiary of UKCMRI Ltd and the partners’
investment was transferred to UKCMRI Ltd.
The four partners have continued to provide working capital
to fund the UKCMRI project during the year. Until UKCMRI
Ltd became operational in February 2011, this was by means
of a joint programme-related loan arrangement with UKCMRI
Construction Limited. Subsequently the funding of the project
has been by means of capital contributions leading to shares
being issued by UKCMRI Ltd to the partners and a new loan
facility agreement. Shares in UKCMRI Ltd have also been
issued in respect of programme-related investment loans
originally made to UKCMRI Construction Ltd.
Following approval by the Development Committee of the
London Borough of Camden in December 2010, UKCMRI
Construction Ltd successfully received formal notice of
planning permission for the Institute building in March 2011.
The Gibb Research Fellowship Endowment Fund is a
wholly-owned subsidiary. It supports four research fellows.
The Fund has also agreed to grant fund an annual reward
scheme promoted by Cancer Research UK to encourage and
recognise those making outstanding contributions to cancer
research, especially those showing promise for the future.
War on Cancer has awarded grants to various cancer
research projects in the University of Leeds during the year.
The bulk of its funds have now been spent in accordance with
its financial strategy. War on Cancer was granted a uniting
direction with Cancer Research UK on 1 December 2010
and is now shown as a restricted fund within the Cancer
Research UK Charity accounts (see Note 26).
14 / Annual Report and Accounts / Our finances