What if - Genome Canada€¦ · Autism is believed to have a strong genetic basis but the actual cause is still unknown. Some 200,000 Canadians are living with autism, which occurs

ANNUAL REPORT 2006–2007

What if

ISBN 978-0-9739156-6-2

GENOME CANADA ANNUAL REPORT 2006–20071

What if? It’s a question that stirs the imagination — one that invites us to look beyond the known to the still undiscovered,

beyond present realities to future possibilities. At Genome Canada we believe in the importance of extending horizons,

expanding vistas and envisaging a better tomorrow. That’s why we never stop asking, “What if?”

4GENOME CANADA ANNUAL REPORT 2006–2007

What if we could unlock the mystery of autism?


With funding from Genome Canada, scientists are working on isolating genes that may be involved in autism. This groundbreaking work will enable doctors to diagnose autism sooner and could lead to drugs for treating it.


Autism, from the Greek word for self, is the name for an incurable brain

disorder that impairs a person’s ability to communicate and relate to others. Symptoms may include repetitive behaviours such as headbanging, avoidance of physical or eye contact with others, and communication through gestures instead of words. About 40 percent of children with autism do not talk.

“This groundbreaking work will extend our knowledge of the biological nature of autism and could lead to drugs for treating the disorder.”


Autism is believed to have a strong genetic basis but the actual cause is still unknown. Some 200,000 Canadians are living with autism, which occurs in all racial, ethnic and social groups.

And the incidence of autism is on the rise. In fact, the number of children diagnosed as autistic climbed by 400 percent in the last decade alone. We do not know whether the increase is due to better diagnostic tools or environmental factors.

Today, 1 in every 500 children in North America is diag-nosed with autism. It is more common than pediatric cancer, juvenile diabetes and HIV/AIDS combined.

According to Dr. Steve Scherer of the Hospital for Sick Children in Toronto, it’s a classic Catch-22: to be most effective, intervention should take place before age 3 but it’s difficult to diagnose autism before that age.

Dr. Scherer heads a team of the country’s leading geneti-cists, developmental pediatricians and genome scientists taking part in a 10-nation project studying autism. With funding from Genome Canada, the team is working on iso-lating genes that may make someone susceptible to autism. Once those genes have been identified, physicians will be able to diagnose the condition much earlier and treat it more effectively.

This groundbreaking work will extend our knowledge of the biological nature of autism and could lead to drugs for treating the disorder. “The implications of this research are profound,” says Dr. Scherer, “most importantly for these children and their families, but also for the Canadian health care system.”

Current treatment consists of concentrated behavioural therapies, often requiring nearly round-the-clock involvement by trained specialists—an expensive and labour-intensive approach. According to Dr. Scherer, if treatment starts early enough, many children may not need special services by the time they enter school, resulting in greater indepen-dence and lower costs.

What’s more, with an understanding of the genetic basis, it will be possible to predict whether autism is likely to recur in a family. This would significantly lessen the anxiety of pro-spective parents. It would also facilitate early diagnosis.

The research has already attracted interest from some of the world’s largest pharmaceutical companies, includ-ing Schering and GlaxoSmithKline. They see genomics discoveries and profiling as potential first steps toward devel-oping effective drug therapies. This means opportunities for licensing agreements. Two patent applications have already been filed.

For millions of children, however, cracking the medical mystery that is autism means even more: the chance for a better life.


Message from the Chair of the Board


Over the past seven years, Genome Canada has earned an enviable reputation in international circles for the excel-lence of its research, the calibre of the scientists it works with, the quality of platforms put in place and the transpar-ency of its governance.

All of these have made Canada a much-sought-after partner in major international projects—including the groundbreak-ing Autism Genome Project, which is attempting to map the genes responsible for autism.

Through the International Consortium Initiative, Genome Canada is also part of the $95 million Canadian-led Structural Genomics Consortium, which is placing over 400 three-dimensional structures of proteins of relevance to human health in the public domain. This initiative is a partnership among Canadian, British and Swedish organizations, along with the global pharmaceutical firm GlaxoSmithKline.

Genome Canada has been involved in two other major international initiatives. The Haplotype Map Project is an effort to create a map of common “blocks” or haplotypes of DNA, with the United States, the United Kingdom, Japan, China and others. The Bovine Genome Project is develop-ing a complete map of the cow genome.

Such a strong international presence in genomics and proteomics has not gone unnoticed. Burrill & Company is a leading life sciences merchant bank and publisher of the Burrill Biotech Report, the seminal annual survey of the state of the biotechnology industry. The report has recog-nized Canada as having “outstanding discovery potential,” with “some of the best genomics research facilities and scientists.” It also recognized Genome Canada’s role as

“the primary funding and information resource.”Here in Canada, in September 2006 the Council of Canadian

Academies released its study entitled The State of Science

& Technology in Canada. This confirmed our country’s “notable strength in genomics and proteomics” and judged those areas as having “the highest growth prospects.”

The Council singled out Genome Canada as standing among the top four programs that support commercializa-tion, translating research into “applications that benefit the economy or society.”

One of Genome Canada’s greatest strengths is the network of six regional genome centres. These provide a critical competitive edge by linking together the genom-ics and proteomics communities in their regions, pooling resources and expanding opportunity.

At the heart of these centres are some of the most re-spected researchers in the world—men and women whose outstanding work is breaking new ground and setting new standards. Their efforts have not only pushed Canada to centre stage in genomics and proteomics research, but drawn others from around the world to work beside them.

At Genome Canada, understanding the world inside our cells means joining with the world outside our borders. It means being the best and working alongside the best.

Over the past seven years, those goals have become achievements. By continuing to ask “What if?” and answering

“Why not?” we can look forward to even greater accom-plishments ahead.

Dr. Calvin R. StillerChair of the Board


Message from the President and CEO


“What if?” It’s a question that invites us to imagine the future—and inspires us to create it.

Seven years ago, the Government of Canada asked its own “what if” questions: What if Canada was to become a leader in the transformative science of genomics and proteomics? What if our country focused on large-scale, world-class research projects? What if we established an arm’s-length corporation to lead those efforts, operating on a free-enterprise basis?

The answer to those questions, of course, was the cre-ation of Genome Canada, which has quickly established Canada as a major player in international genomics and proteomics research.

With more than $700 million invested, over 400 research-ers engaged and 115 projects funded, Genome Canada has vaulted Canada to a position among the world’s pre-mier nations in one of the most exciting areas of scientific discovery: genomics and proteomics.

In 2006–07, the projects funded through Genome Canada’s first two competitions were successfully completed. The results have been impressive: 11 new companies formed, 34 patent applications filed and seven commercial licences issued. Equally impressive, the projects have pushed back the frontiers of science. Among the major advances:• New enzymes have been isolated that could dra-

matically reduce levels of industrial pollutants, renew contaminated soil, boost oil extraction from Canada’s tar sands and extend the shelf life of food.

• TheSARSvirushasbeensequenced.TheWorldHealthOrganization called this a “stunning” achievement.

• Researchershavegainedabetterunderstandingofthe mechanisms of the human immune system. This will have far-reaching implications for our ability to comprehend, prevent and treat disease.

There is every reason to expect that Genome Canada’s 64 ongoing projects will make contributions just as significant.

During the past year Genome Canada continued to be a much-sought-after partner in major international genomics and proteomics projects, including the Canada–California Cancer Stem Cell Initiative, the International Knockout Mouse Consortium and the Public Population Project in Genomics.

In keeping with Canada’s global leadership role, in 2006–07 Genome Canada hosted its first international conference in Québec City. Entitled “2020 Vision: Variation and Function in the Genome,” it attracted more than 230 participants from Canada, the United States and Europe. The conference was an outstanding success and plans are under way for this year’s event, “2020 Vision: Adaptation to Environmental Change.”

Canada has world-class research projects, outstanding technology platforms and top-notch researchers. Genome Canada is now looking to leverage these advantages to the further benefit of Canadians. With this goal in mind, Genome Canada is developing new procedures for allo-cating research funds for 2008 and beyond. The funding will specifically target areas of national interest and socio-economic importance to Canadians.

A Request for Position Papers was launched in 2006 and will continue this year. The aim is to identify significant national issues that could benefit from genomics or pro-teomics research.

Over the past seven years, the Government of Canada has invested $700 million in Genome Canada. Co-funding from the provinces and other sources has raised this amount to more than $1.4 billion. The funding has produced tan-gible benefits for Canadians, science and the world. This is a strong expression of confidence in Genome Canada’s performance and potential.

With continued funding at a sufficient level, Genome Canada is ideally positioned to create even greater oppor-tunities for Canadian researchers. This will allow them to gain important new insights, and to ask and answer that most important of questions: “What if?”

Martin GodboutPresident and CEO


What if enzymes could help produce

ethanol?


Canadian scientists are searching for enzymes that could replace the harsh

chemicals used in industrial processes. They’re also isolating enzymes that can clean up contaminated soil, convert oil

and fat to biodiesel, and even extend the shelf life of bread.


Fungi are not exactly nature’s glamour children. And that’s too bad because

the enzymes they produce could hold the key to some of our most pressing environmental and energy-related challenges.

Fungal enzymes already play a critical role in everything from brewing beer and baking bread to making wine and converting plant matter into biofuel. Now scientists are gaining a better understanding of exactly how these enzymes work.

“Enzymes are nature’s most efficient tools for decomposition. This means they might lend themselves to soil remediation, breaking down toxic substances so that the land becomes available for productive purposes.”


Dr. Adrian Tsang of Concordia University in Montréal leads a group of researchers using the new tools of genomics to identify enzymes for industrial and environmental applications.

One area that holds tremendous potential is the pulp and paper industry. Each year, Canada produces about 30 million tonnes of pulp and paper. The sector employs more than 65,000 people and contributes about $17 billion to the Canadian economy. But it’s also the third most polluting industry in the country.

Dr. Tsang’s team is isolating enzymes that could replace the harsh chemicals currently used in pulping and bleach-ing. The fungal enzymes digest the brown lignin in wood, leaving the white cellulose behind for use in making paper.

“Not only will the environment be cleaner,” says Dr. Tsang, “but Canada’s forest industry should become more com-petitive globally as consumers demand environmentally friendly products. What’s more, fungal enzymes are already being used widely in industry. They are versatile, can be used in challenging environments, are readily available and can be produced at low cost.”

Enzymes are nature’s most efficient tools for decom-position. This means they might lend themselves to soil remediation, breaking down toxic substances so that the land becomes available for productive purposes.

Still another possibility is using enzymes to help meet Canada’s energy needs. The idea is to use enzymes to treat oil sands with a spray that would cause the sand to repel the oil. This would make extraction easier and much more economical.

Scientists are also developing enzyme technologies to convert used oil and fat into biodiesel, and transform wood and plant biomass into ethanol. Work in this area has already produced two provisional patents, with more expected.

Sponsored in part by Genome Canada, the research of Dr. Tsang and his team has attracted international attention, including from the Dutch multinational DSM. A world leader in manufacturing enzymes for the food sector, DSM sees tremendous potential for novel enzymes to be applied in the production of bread, cheese and other foodstuff.

DSM’s Intellectual Asset Manager, Wim de Boer, points out, “Developing an enzyme which will keep bread fresher for even one day longer has enormous commercial and competitive advantages.”

With global markets for industrial enzymes expected to reach $3.8 billion US by 2010, a spin-off company already in the works and multinational partners capable of commercializ-ing new enzymes, this Canadian research project just might earn fungi—and the enzymes they produce—the respect they deserve.


“ThE GEEE! iN GENOME”

For this multi-faceted exhibition, Genome Canada worked in partnership with the Canadian Museum of Nature.

“The Geee! in Genome” introduced Canadians to the world of cells, proteins and DNA. In 2006–07 the exhibition trav-elled to St. John’s, Halifax, Charlottetown and Québec City, drawing over 200,000 visitors.

Evaluation and assessment efforts have been under way, with the aim of taking the “Geee! in Genome” initiative in new and exciting directions. Genome Canada is exploring options for its future involvement.

“GENOMiCs ON ThE hiLL”

In November 2006, Genome Canada organized its second “Genomics on the Hill” day in the Parliament Buildings in Ottawa. The event provided information for Cabinet minis-ters, members of the House of Commons and Senate, their staff, and Public Service officials.

On hand to answer questions were eminent researchers in genomics and proteomics, as well as users of these sci-entists’ discoveries and innovations. They discussed how research is advancing science, providing solutions that can be applied in real life, and contributing to the knowledge-based economy.

Communications and public outreachGENOMICS ANd PrOTEOMICS hOld ThE POTENTIAl TO ChANGE Our rElATIONShIP WITh ThE WOrld IN FuNdAMENTAl WAyS. By uNdErSTANdING ThE COdE lOCkEd INSIdE GENETIC MATErIAl, WE ArE GAINING NEW INSIGhTS INTO hOW INTErCONNECTEd lIFE ON ThIS PlANET rEAlly IS.

FOr MANy PEOPlE, hOWEvEr, GENOMICS ANd PrOTEOMICS ArE STIll NEW ANd MySTErIOuS BrANChES OF SCIENCE ThAT rAISE quESTIONS ANd CONCErNS. ThAT IS Why GENOME CANAdA PlACES SuCh IMPOrTANCE ON COMMuNICATING WITh ThE PuBlIC, PrOvIdING INFOrMATION ANd ENCOurAGING dISCuSSION.

dr. Martin Godbout, President and CEO, Genome Canada, and the honourable Maxime Bernier, Minister of Industry, at “Genomics on the hill.”

At “Genomics on the hill.” dr. Godbout; dr. Wendy roberts, director, Autism research unit, hospital for Sick Children in Toronto; the honourable Senator Art Eggleton; dr. Stephen Scherer, Senior Scientist, hospital for Sick Children in Toronto, and Project leader of the Autism Project; and the honourable Jim Flaherty, Minister of Finance.


YOUTh EDUCATiON

Engaging young people—the next generation of scientists—has always been of importance for Genome Canada. This year, we supported the following youth education programs:• the Canada-wide Science Fair, which attracts high

school students with the best science projects;• TeamEquipeCanada,theworld’slargestpre-college

celebration of science;• the InternationalBioGENEiusChallenge,a science

competition aimed at raising awareness among students, educators and the public about biotechnology; and

• BioTrek,afive-daysummerbiotechnologyprogramfor selected high school students.

CONfERENCEs

Genome Canada sees a presence at major international conferences as an opportunity to showcase the leadership role of the organization and Canadian researchers in genomics and proteomics research.

In the past fiscal year Genome Canada sponsored or participated in several conferences:• BIO2006inChicago,theannualeditionofthelargest

international biotechnology conference in the world; • Bio-Finance in Toronto, the annual Canadian forum

where leading-edge industry executives outline their development plans for new medicines and technologies;

• the World Congress of the Human Genome Organization in Helsinki, Finland, an annual meeting showcasing the ever-evolving field of human genome research;

• BiotechWeek inOttawa, aweek of activities cele-brating biotechnology research;

• the World Congress of the Human Proteome Organization in Long Beach, California, an annual meeting which showcases leading-edge proteomics tools and approaches;

• BioContact inQuébecCity,anannualeventwhichoffers meeting ground for biopartnering with bio-pharmaceutical companies; and

• BioNorth in Ottawa, a conference and exhibitioncommercializing innovation.

In addition, from October 25 to 27, 2006, in Québec City, Genome Canada hosted its first international conference,

“2020 Vision: Variation and Function in the Genome.” The conference drew researchers, presenters and participants from Canada, France, Spain, Sweden, Switzerland, the United Kingdom and the United States.

Feedback about the conference was highly positive. The success of this inaugural event encouraged Genome Canada to plan a 2007 international conference with emphasis on environmental adaptation.

“I would like to congratulate Ted Paranjothy, 17, a student at Fort Richmond Collegiate in Winnipeg, Manitoba, who has won the 2007 sanofi-aventis International BioGENEius Challenge.”

Dr. Martin Godbout, President and CEO Genome Canada

Ted Paranjothy dr. Fotis C. kafatos, Chairman of the European research Council Scientific Council, and dr. Michael Morgan, Chief Scientific Officer, Genome Canada, at the Genome Canada International Conference.



In 2006–07 Genome Canada organized two news confer-ences that received extensive media coverage:• In May 2006, Minister of Industry Maxime Bernier

committed $18.6 million for science and technology platforms. This helped fulfill a priority of Genome Canada: ensuring that researchers have access to so-phisticated tools and technology across the country. These new, state-of-the-art platforms are located in Vancouver, Victoria, Calgary, Toronto and Montréal.

• In December 2006, Minister Bernier announcedthat the federal government would invest $200,000 for genomics research into Clostridium difficile. A major human pathogen, this bacterium has become a serious health problem especially in hospitals across Canada.

Throughout the year, Genome Canada–funded projects con-tinued to make national and international news:

MAPPiNG vARiATiON iN ThE hUMAN GENOME

The first map of DNA and gene copy number variation in the human genome has been created by a consortium of scientists partially funded by Genome Canada and led by Toronto’s Hospital for Sick Children, the Wellcome Trust Sanger Institute, Brigham and Women’s Hospital, Harvard Medical School, Affymetrix Corporation, and the University of Tokyo. This resource will provide critical information for understanding human evolution and disease.

iDENTifYiNG Risk-fACTOR GENEs fOR TYPE 2 DiAbETEs

A study led by researchers at the McGill University Health Centre (MUHC) has identified four genes that increase the risk of developing Type 2 diabetes. This is the most common form of diabetes worldwide and affects nearly 2 million Canadians. In recent years its prevalence has increased rapidly. The genetic discovery may help stem its rise.

The findings were published in the journal Nature. The study involved scientists from the MUHC and the McGill University and Génome Québec Innovation Centre, the Pasteur Institute in France, the Université de Montréal, Imperial College London in the UK, and the Montréal Diabetes Research Centre.

Genome Canada in the newsSINCE ITS INCEPTION IN 2000, GENOME CANAdA hAS BEEN lEAdING rESEArCh EFFOrTS, MAkING NEWS, ANd kEEPING ThE PuBlIC INFOrMEd ABOuT WhAT IT dOES ANd Why.

Opposite page: The honourable Maxime Bernier, Minister of Industry. Behind him, from left: dr. Martin Godbout, President and CEO, Genome Canada; dr. Simon Sutcliffe, President and CEO, BC Cancer Agency; and dr. Marco Marra, director, BC Cancer Agency’s Genome Sciences Centre. Taken at the press conference where Minister Bernier committed $18.6 million for science and technology platforms.


ANALYziNG POPLAR’s DNA bLUEPRiNT

A cover article in Science magazine reported the first sequencing of the complete genome of a tree. The Black Cottonwood or poplar (Populus trichocarpa) is one of the most ecologically and commercially valuable groups of trees in North America. The sequencing was the work of an international consortium of scientists representing 34 organizations, including the US Department of Energy, the University of British Columbia, Genome Canada, Genome British Columbia and the Umeå Plant Science Centre in Sweden. The findings will help researchers de-velop important environmental applications, including trees that produce more biomass for conversion to biofuel and trees that sequester more carbon from the atmosphere, thus mitigating the effects of climate change.

NEw ChiEf sCiENTifiC OffiCER AT GENOME CANADA

In an announcement noted in Nature magazine, Genome Canada appointed Dr. Michael Morgan of Britain its new Chief Scientific Officer. Dr. Morgan is an internationally renowned researcher and former Chief Executive of the Wellcome Trust Genome Campus. His job is to supervise and coordinate Genome Canada’s national and inter-national activities in genomics and proteomics research.


As genomics and proteomics research opens up new vistas of understanding, important questions arise about the ethi-cal, environmental, economic, legal and social implications (GE³LS) of this knowledge.

Genome Canada believes in the importance of facing such questions squarely, addressing them honestly and ex-ploring them openly. Every large-scale project funded by it must take these issues into account. Since its inception, Genome Canada has worked hard to build the capacity for exploring these issues.

A Genome Canada objective is to ensure leadership in the ethical, environmental, economic, legal and social aspects of genomics research. To fulfill that objective, the organization has invested in large-scale GE³LS projects, integrated the investigation of these issues into other large-scale science projects, and conducted related sym-posia and outreach activities.

It has also consulted with scientists, research communi-ties, non-governmental agencies and government depart-ments to ensure a national focus for Genome Canada’s GE3LS programs. As a result of the ongoing consultations, in 2007–08 Genome Canada will undertake to:

• hireafull-timedirectorforitsnationalGE3LS program;

• hostaninternationalconferenceonGE3LS; • conductworkshopsonintegratingGE3LS and

genomics research; and • laythegroundworkforawebsitedevotedto

GE3LS issues.

All of these steps will help to create and maintain a ro-bust GE3LS culture in Canada, and strengthen the country’s leadership on these critical issues.

In 2006–07 Genome Canada joined with the Social Sciences and Humanities Research Council of Canada and the Canadian Institutes of Health Research to host two workshops related to the European Research Area initia-tive on the Societal Aspects of Genomics (ERA-SAGE). The initiative is shaping the future of transnational GE3LS research.

To further promote awareness of GE3LS issues, twice a year Genome Canada publishes a newsletter featuring interviews with leading scientists, profiles of them, discus-sions of emerging issues and overviews of conferences. With a circulation of more than 1,000, the newsletter has become a focal point for GE3LS issues in Canada.

Ethical, environmental, economic, legal and social implications of genomics research (GE3lS)


What if we could get inside the skin of a grape?


The mysterious interaction of sun, shade and soil determine the quality of grapes and the wine they produce. By sequencing the genes of the grape berry, Canadian scientists are uncovering the molecular basis of the ripening process, creating opportunities to produce consistently high-quality wine.


“Wine,” said robert louis Stevenson, “is bottled poetry.” For centuries

winemaking has been something of a romantic pursuit, more art than science. Grape growers, or viticulturists, have experimented with the complex interplay of sun, soil and water, but they knew very little about what was actually happening inside the grapes.

“With an understanding of the genetic blueprint, viticulturists will be better able to detect, direct and monitor the onset of ripening even before it can be seen in the grapes themselves.”


For example, growers have long known that by clip-ping leaves, thinning out bunches on the vine or creating drought conditions, they can obtain smaller grape berries with more concentrated flavours. But so far science has not been able to explain why these practices work.

That may be about to change, thanks to a joint project of Genome Canada and Spain’s Genoma España. The aim is to apply genomics in order to decipher some of the ancient mysteries of wine grape cultivation.

Leading the project is Dr. Steven Lund of the University of British Columbia (UBC), in collaboration with Dr. Jörg Bohlmann (also of UBC) and Dr. José Martinez Zapater of the Universidad Autónoma de Madrid. “The vintage is af-fected by the environment, both natural and human-made,” explains Dr. Lund, “and the genetic makeup of the grape berry is responding to fluctuations in the environment throughout each season.” By sequencing the genes of the grape berry, researchers hope to discover more about that response, and particularly its impact on the time of ripen-ing and the quality of grapes.

Timing is everything in growing grapes. Until the sixth to eighth week, grapes are small—about the size of a pea. Over a few critical days they suddenly mature, a process traditionally known by the French term véraison. Lund equates it with a mid-life crisis; the biochemical transfor-mation can be just as complex, with up to 10,000 genes involved in ripening.

As the grapes continue ripening on the vine, sugars accu-mulate, acid levels decline, flavour and aroma compounds are synthesized, and red grapes acquire their pigment. The balance of these factors determines the overall quality of the grapes and the wine eventually made from them. The grower must decide when the balance is exactly right and the time has come to harvest the grapes.

The problem for viticulturists is that there are no signals that the transformation is about to occur. What causes the changes? Why do some grapes ripen faster than others? What are the biological effects of sun and shade? What’s really going on at the molecular level?

Lund hopes that with an understanding of the genetic blueprint, viticulturists will be better able to detect, direct and monitor the onset of ripening even before it can be seen in the grapes themselves. This could translate into a major advantage: growers could synchronize earlier maturation and potentially produce more consistent, excellent wines.

To provide the necessary information, Lund sees one offshoot of the research project being the development of hand-held tools that growers could carry into the vineyard to detect the presence of key proteins.

The wine grape is the most economically important fruit on the planet, with more than 7.4 million hectares planted in vineyards worldwide. Viticulture is also a fast-growing sec-tor of the Canadian economy, particularly in British Colum-bia. Sales there of wines bearing the mark “VQA”—that is, certified by the Vintners Quality Alliance—rose from about $7 million in 1991–92 to over $130 million in 2005–06.

According to Dan Paszkowski, President of the Canadian Vintners Association, this research ”will bring significant benefits to the industry by allowing our members to get the most out of their grapes regardless of the conditions they face. It really takes us from the known to a whole new level.”

While science may be removing some of the poetry and romance from winemaking, it presents the possibility of supporting the production of more consistent, world-class wines in Canada. That’s something even Robert Louis Stevenson would be likely to applaud.


One of Genome Canada’s strengths is its network of regional centres across the country. Five were established in 2000. Their number rose to six in 2006–07 with the estab-lishment of Genome Alberta. The new centre takes over from Genome Prairie in serving the province of Alberta.

The centres act as focal points for local expertise and interests. They facilitate access to top-flight science and technology platforms. They assist researchers with project development, management and fundraising. Centres and scientists work together to secure co-funding for each project at the level of 50 percent or more.

Every centre also conducts its own public outreach programs to showcase its projects and raise awareness of its activities.

Following are highlights of each regional centre’s achieve-ments in 2006–07.

A list of eligible projects can be found on the website of each Genome Centre.

Genome Centres


MissiON

To be the catalyst for a life sciences cluster of genomics-related research institutions and companies working together for the socio-economic benefit of British Columbia and Canada.

REsEARCh PROGRAMs

Since 2000, Genome British Columbia has managed 32 projects. In 2006–07, 20 projects were still active, including:• Adverse Drug Reactions in Children. Initiated in

2004, this project led by Drs. Michael Hayden and Bruce Carleton explores why a drug is safe for one child but not for another. It looks at adverse drug reactions resulting from the normal use of medicines, not dosage errors or other mix-ups. Most of the re-actions are caused by inherited genetic differences and are currently considered unavoidable. The goal of the project is to discover biomarkers for predicting adverse reactions; this would lead to the develop-ment of diagnostic tests for recognizing children who are at high risk of such reactions. The team has established a national surveillance network, which has already tracked 1,000 cases of adverse reactions. From the data three promising genetic variations have been identified.

• Conifer Forest Health Genomics. Led by Drs. Jörg Bohlmann and Kermit Ritland, this project builds on the success of an earlier international undertaking that sequenced the genome of the poplar tree in 2004. This latest project focuses on spruce and pine trees. It looks at their traits of insect defence and

wood formation, and how these relate to the broader issue of overall conifer forest health. Different species of trees have evolved unique resistance mechanisms to defend against insects and disease. By identify-ing some of these mechanisms, genomics tools can advance the selection and breeding of trees that naturally have built-in protection against pests and diseases. That would benefit the forestry industry, an important economic sector in British Columbia and Canada.

PLATfORMs

Genome BC has developed a comprehensive and robust suite of science and technology platforms. These provide a range of technical services to facilitate and expedite genomics research. The platforms support Genome BC’s funded research projects and serve a diverse international clientele. • The Genomics Platform provides the tools and

expertise to analyze genomes in various ways and encompasses the areas of sequencing, mapping and bioinformatics. It is housed at the BC Cancer Agency’s Genome Sciences Centre (GSC), and is led by Drs. Marco Marra, Steven Jones and Rob Holt. The GSC sequenced the SARS virus in 2003 and contributed to the Bovine Genome Project. In the last year the platform served 53 scientists, 28 funded by Genome Canada and 25 with funding from other sources.

Genome British Columbia


• TheUniversity of Victoria–Genome BC Proteomics Centre provides protein analysis services to Canadian and international academic, biotechnology and phar-maceutical laboratories. It is led by Dr. Christoph Borchers and located at the Vancouver Island Technology Park. In the last year the platform served 130 scientists, 4 funded by Genome Canada and 126 with funding from other sources.

• At Vancouver General Hospital, the Prostate Centre’s Microarray Facility has expertise in micro-array design, production, hybridization and data analysis. The Facility allows researchers to analyze the expression of tens of thousands of genes at once. Using its rapid and economical services are aca-demic and private-sector groups across Canada and internationally. The Facility is led by Dr. Colleen Nel-son. In the last year the platform served 37 scientists, 3 funded by Genome Canada and 34 with funding from other sources.

• The Technology Development Platform, led by Dr. Andre Marziali, provides engineering support and technology development solutions for hardware challenges in life sciences research. Since 2002 about 45 projects have been undertaken, from simple point solutions to multi-year research projects. Two major projects have reached the commercialization stage.

COMMUNiCATiONs AND OUTREACh

• School activities. Almost 4,000 elementary and high school students and their teachers across the province took part in activities that included three travelling exhibitions, a hands-on day of curriculum-based experiments (Geneskool on the Road), classroom visits and workshops for teachers.

• Public events. During 2006–07, four public forums were held featuring a broad cross-section of research scientists and clinicians. In addition, a science fiction play was presented. The events attracted close to 1,000 members of the public.

APPOiNTMENT

Dr. Pierre Meulien joined Genome BC as Chief Scientific Officer. This internationally recognized scientist was previ-ously Chief Executive of the Dublin Molecular Medicine Centre in Ireland.

Tel. 604-738-8072 Fax 604-738-8597 Website www.genomebc.ca Email [email protected]

Dr. Alan E. Winter President and CEO


MissiON

Genome Alberta provides leadership in functional genomics research and development for the benefit of Alberta and Canada.

REsEARCh PROGRAMs

Since its inception in March 2006, Genome Alberta has been managing six active projects, including:• Diagnostic Applications of Microarrays in Organ

Transplantation. Led by Dr. Philip Halloran, Director of the Alberta Transplant Institute, the project seeks to develop tests to detect and measure organ transplant rejection. It has the potential of offering multiple benefits: improved health for organ trans-plant recipients; opportunities for investment and patents; and extension of this powerful technology to other health problems involving organ diseases, with a goal of preventing organ failure and lighten-ing the burden of chronic disease. In 2006–07, the Canada Foundation for Innovation awarded over $5 million to Dr. Halloran to continue his work be-yond the currently funded project.

• Human Metabolome Project. The project seeks to improve disease identification, prognosis and monitoring; provide insight into drug metabolism and toxicology; provide a linkage between the hu-man metabolome and the human genome; and develop software tools for metabolomics. In Janu-ary 2006, the project’s research team announced the first, most complete and comprehensive collection of human metabolites and human metabolism data in the world. Leading the project is Dr. David Wishart, Professor of Computing Science and Biological Sciences at the University of Alberta and Principal Investigator at the National Institute for Nanotechnology.

• Translating Science: Genomics and Health Systems. The project aims to understand how genomic tech-nologies are translated and used in health systems to improve human health; what social, ethical and legal challenges arise from such processes; and what approaches may be taken to deal with these chal-lenges. The project leaders are Professor Timothy Caulfield, Research Director of the University of

Genome Alberta


Alberta’s Health Law Institute, and Dr. Edna Einsiedel, Professor of Communication and Culture at the University of Calgary.

PLATfORM

• The Bioinformatics Platform provides computer infrastructure, primarily at the Calgary-based Sun Centre for Visual Genomics, to develop new approaches for understanding genomics data. Led by Dr. Christoph Sensen, the platform serves Genome Canada–funded projects and other research initiatives around the world. In the last year the platform directly served 628 scientists, 245 funded by Genome Canada and 383 with funding from other sources.


• Website. In January 2007, Genome Alberta launched an interactive education website with a special area for science teachers. The site contains genomics news, an ongoing blog on topics related to genomics education and a section where visitors can down-load teaching materials.

• Teaching module. A genomics module was designed for classroom studies. This links directly to the Alberta Biology 30 curriculum.

• Video. An education video was created and dis-tributed, encouraging students to consider the vast array of jobs and opportunities offered by genomics.

• Public events. In partnership with various com-munity groups, Genome Alberta presented a number of events. One of these combined live theatre and science to offer an evening of entertainment and discussion.

Tel. 403-503-5220 Fax 403-503-5225 Website www.genomealberta.ca Email [email protected]

Dr. David Bailey President and CEO


MissiON

The Prairie region will, as a result of the efforts of Genome Prairie and its collaborators, be recognized as a leading centre in genomics research and its applications to agricul-ture (crops and animals) and to human health.

REsEARCh PROGRAMs

Since its inception in 2000, Genome Prairie has managed seven projects. In 2006–07, two were still active: • North American Conditional Mouse Mutagenesis

(NorCOMM) project. NorCOMM is a founding member of the International Knockout Mouse Consortium. Using high-throughput technolo-gies, the goal of the Consortium is to “knock out” (i.e. remove) each of the 23,000 genes in the mouse genome. As the resulting mice grow into adulthood, the effects of the missing genes can be stud-ied. The project will produce a database and library of mouse embryonic stem cells with genetic

knockouts. This will be an invaluable resource for academic and industrial researchers from many fields in Canada and around the world.

• Use of Genomic Tools for Crop Improvements in Temperate Climates. This project will identify and harness cold-resistant genes in rye, and selectively breed resistance into other cereal crops. Increased use of fall cereals could optimize land use and enhance sustainable food production practices, espe-cially on marginal farmland. The principal investigator is Dr. D.B. Fowler, a researcher on crop development at the University of Saskatchewan. The Government of Saskatchewan is co-funding and co-managing the project.

PARTNERshiPs

• Genome Prairie signed a memorandum of under-standing with New Zealand’s University of Auckland to develop collaborative research projects in nutri-genomics.

Genome Prairie


• Planscallforcompletingsequencingoftheflaxge-nome, a task started by the National Research Council Canada’s Plant Biotechnology Institute. This and a new research relationship with the Flax Council of Canada create an opportunity to enhance flax pro-duction traits. The aim is to increase crop yields and deliver novel oil and fibre products to industrial and food users.

• GenomePrairiehelpedtoraise$1.6millionforscien-tists to address cereal fusarium (head blight). This is a significant barrier to wheat production in Manitoba and eastern Saskatchewan. The aim is to enhance disease-resistance traits through plant breeding, thereby reducing the need for fungicide applications.


• Public events. Genome Prairie organized pub-lic screenings of the film The Score in Regina and Saskatoon. Funded in part by Genome Canada, this musical drama raises ethical questions arising from

rapid advances in science. After the screenings, an expert panel engaged the public and encouraged discussions about the science and ethics of genom-ics research.

APPOiNTMENT

Dr. Reno Pontarollo has been appointed Chief Scientific Officer of Genome Prairie, with an office in Winnipeg. The location has fostered engagement with Manitoba’s research community.

Tel. 306-668-3570 Fax 306-668-3580 Website www.genomeprairie.ca Email [email protected]

Jerome Konecsni President and CEO


MissiON

To provide leadership for Ontario in helping to build a globally competitive life sciences sector by creating leverageable genomics resources with top-notch research.

REsEARCh PROGRAMs

The Ontario Genomics Institute (OGI) works with Genome Canada, Ontario’s Ministry of Research and Innovation (MRI), and other private- and public-sector partners. OGI has developed a portfolio of close to $500 million in ge-nomics and proteomics research projects and technology platforms.

Since its inception in 2000, OGI has managed 34 projects. Over the past year, 17 were still active: • Competition III projects. Ten new projects have

four-year budgets expected to total $168 million. OGI worked closely with MRI to integrate $8.7 million in co-funding from the Ontario Research Fund, and to establish a common progress report system for projects funded by both the Research Fund and Genome Canada.

• Structural Genomics Consortium. The partnership with MRI also led to an additional $15 million for the upcoming second phase of the international Structural Genomics Consortium (SGC). The SGC posted 450 new structures of human proteins to the Protein Data Bank in July 2007, accounting for approximately one third of the new human protein structure output of the entire world and 40 percent of all new structures deposited for Apicomplexan parasites, including those responsible for malaria.

The OGI project portfolio published 128 papers last year acknowledging funding from Genome Canada or OGI. Several papers reported on discoveries that generated international excitement in the areas of autism, cancer stem cells and species bar-coding.

PLATfORM

• The Centre for Applied Genomics (TCAG) is led by Dr. Steve Scherer of Toronto’s Hospital for Sick Children. TCAG is the highest-volume site in Canada for gene expression using Affymetrix chips. It has expanded the number of users of its DNA sequencing,

Ontario Genomics Institute


genotyping, gene expression, cytogenomics and biostatistics services. TCAG continues to explore new technologies that could create a competitive advantage for Canadian scientists. For example, its partnership with Ingenuity Systems has led to leading-edge systems biology software tools for pathway analysis by 10 Ontario groups. In the last year the platform served 489 scientists, 23 funded by Genome Canada and 466 with funding from other sources.

PARTNERshiPs

• WithGEHealthcare,OGIexploredtheuseofmolecu-lar imaging in tracking biomarkers in a science–industry workshop. Participating were 24 companies involved in commercializing such technologies.

• OGI joined with Cambridge Healthtech Institutefor a workshop exploring the use of biomarkers in clinical trial design. The participants represented 27 biotechnology and pharmaceutical companies from Canada, France, Germany, Israel and the United States.


• Public events. OGI staff gave more than 40 external presentations and organized five public

“impact of science” forums across Ontario. These focused on issues as diverse as autism, nutrigenom-ics, genetic testing and bioethics.

• Arts and media. OGI uses the arts and creative media to reach a broader audience. It extended its partnership with Shaftesbury Films for another season of OGI’s web-based “Facts Behind the Fiction,” an episode-by-episode companion to the television science drama, “ReGenesis.” This partnership was featured in Shaftesbury’s mini-documentary on “The Making of ReGenesis.”

Tel. 416-673-6596 Fax 416-977-8342 Website www.ontariogenomics.ca Email [email protected]

Dr. Christian Burks President and CEO

human Protein

human hydroxysteroid (17-beta) dehydrogenase 8hSd17B8.date of deposit: 2007/03/31


MissiON

Génome Québec financially supports major genomics and proteomics research initiatives as well as their applications in association with the academic and industry domains, while maintaining and promoting the highest ethical stan-dards.

The mobilizing effect created by these investments will contribute to maximizing socio-economic benefits and to establishing Quebec as a leader in the field of life sciences.

REsEARCh PROGRAMs

Out of 28 projects since its inception in 2000, 16 were still active and managed by Génome Québec in 2006–07, including: • C. difficile research project. Led by Dr. Ken Dewar

of McGill University, the project aims to sequence virulent strains of the Clostridium difficile bacterium, which has infected patients in Quebec hospitals. The initiative was announced at a high-profile press conference attended by federal Minister of Industry the Honourable Maxime Bernier.

PLATfORMs

• Two newworld-class centres opened: theGénome Québec and Montréal Heart Institute Pharmacogenomics Centre and the Génome Québec and Université de Sherbrooke RNomics Platform. Both have started offering their services to researchers in universities and industry.

• Demand for the services of Génome Québec technology platforms rose by 10 percent over the previous year.

• The platforms of the McGill University and Génome Québec Innovation Centre served 532 scientists, 11 funded by Genome Canada and 521 with funding from other sources.

PARTNERshiPs

• GénomeQuébecsignedacooperationagreementwith the Fonds de recherche en santé du Québec and the Fonds de recherche sur la nature et les tech-nologies for evaluation of genomics research projects.

• Togetherwithacademicpartners,GénomeQuébecintroduced a program supporting development of strategic sectors to strengthen capacity for recruit-ing top researchers.

Génome québec


• AttheBIOInternationalConventioninMay2006,apartnership agreement was announced, signed late in the previous year by Génome Québec and Merck Frosst Canada.


• Publications. Many researchers funded by Génome Québec and partners made their mark in leading scientific magazines and journals. For example, Drs. Michael Phillips and Jean-Claude Tardif made the front page of Genome Technology magazine. In adddition, Génome Québec collaborated on developing and distributing a special issue of Commerce magazine’s “Prestige” series to promote genomics to the general public and economic decision makers in Quebec.

• University competition. An agreement was reached with the Université du Québec network to hold a multidisciplinary competition on designing a tool for promoting and popularizing genomics among young people and the general public.

• Award for integrating genomics applications. A new Genesis Award was established, presented by Génome Québec to recognize an outstanding con-tribution to integrating genomics applications into

clinical practice. The 2007 award went to Dr. Michel Bergeron of Université Laval.

• Symposium. Génome Québec organized and held the first symposium on the theme “Des défis de l’intégration du savoir en génomique dans le réseau de la santé” (Challenges in integrating genomics knowledge into the health system). More than 210 academics, decision makers and others attended the event, which was a decided success.

Quebec’s Research and Innovation Strategy. Genomics was recognized as a strategic technology in Quebec’s new Research and Innovation Strategy. This allocated an additional $104 million to support three organizations, including Génome Québec.

Tel. 514-398-0668 Fax 514-398-0883 Website www.genomequebec.com Email [email protected]

Paul L’Archevêque President and CEO


MissiON

To lead a regional program of genomics research and development that delivers tangible social, economic and environmental benefits to Atlantic Canada.

REsEARCh PROGRAMs

Since its inception in 2000, Genome Atlantic has managed a total of eight projects and raised $25 million in regional co-funding through the development of mutually beneficial partnerships with universities, industry and various levels of government in the Atlantic region.

Three projects co-funded by Genome Canada were active in the Atlantic region in 2006–07, with funding and management supplied by Genome Atlantic:• Atlantic Medical Genetics and Genomics Initiative.

The aim of this pan-Atlantic initiative is to iden-tify families with devastating monogenic disorders, determine the causal genes and produce tangible

socio-economic benefits by improving disease man-agement. The project started in July 2006. After obtaining approvals from local Research Ethics Boards, it has begun studying families for 29 genetic disor-ders. High-throughput platform services for whole genome mapping and gene resequencing are in place. A manuscript has been submitted on the discovery of a gene for Schnyder crystalline corneal dystrophy, and two provisional patent applications have been filed. Manuscripts are in preparation on the discovery of genes for cardiomyopathy and he-reditary deafness. In addition, the GE3LS team has established a regional partnership and is now creat-ing a regional health policy advisory board.

• Atlantic Cod Genomics and Broodstock Development Project. In partnership with the aquaculture industry, this project seeks to identify and select elite brood-stock through the application of selective breeding

Genome Atlantic


and genomics. The cod broodstock development program has made significant progress, successfully producing 423 family crosses during the last two spawning seasons.

• Enhancing Commercial Culture of Atlantic Halibut and Senegal Sole (Pleurogene). The Pleurogene Project is a collaboration with Spanish researchers and Genoma España that focuses on the genom-ics of Atlantic halibut and Senegal sole . These two flatfish yield high-value market products and could perhaps be used in fish farming. The project examines a series of production-related problems linked to reproduction, development, nutrition, genetics and immunity. The three-year term of the project comes to an end as of October 31, 2007. Progress during 2006–07 has helped ensure its successful completion.


• Museum exhibit. Over 40,000 visitors flocked to “The Geee! in Genome” when this travelling exhibi-tion came to Halifax and Charlottetown.

• Education. Partnerships with school boards and education committees around the region promoted genomics education.

• Public events. Through the Genome Atlantic GE3LS program, public forums were held across Atlantic Canada. A GE3LS committee was formed, with lead-ing Atlantic Canadian experts among its members.

Tel. 902-421-5683 Fax 902-421-2733 Website www.genomeatlantic.ca Email [email protected]

Michael Dennis President and CEO


What if we could produce more heart-healthy fish?


Increasing demand for heart-healthy fish is placing a strain on stocks worldwide.

New research by scientists is leading to breakthroughs in breeding techniques that will create jobs in the fishery, boost international competitiveness and help

meet global demand.


humans have farmed fish for nearly as long as they have planted crops or

raised animals. The earliest records of fish farming, or aquaculture, are from China, beginning some 3,500 to 4,000 years ago.

Aquaculture today is one of the fastest-growing food production sectors in the world, and demand for its products is expected to keep rising. That’s because the world’s population is increasing and interest is spreading in heart-healthy food.

“By working with our partners in this genomics project, we’ll be able to identify markers on the fish DNA that will pinpoint specific traits.”


According to the Canadian Aquaculture Industry Alli-ance, global population is expected to climb from 6 billion in 2000 to 8.3 billion by 2030. The estimated demand for fish and seafood will then be 183 million tonnes, but tradi-tional fisheries will be able to supply only 80 to 100 million tonnes on a sustainable basis.

Aquaculture techniques are changing to make up the shortfall. In fact, by 2030 aquaculture is expected to be the main source of fish and seafood. Nell Halse of Cooke Aquaculture Inc. points out, “Just as we rely on farm-raised animals, we’re increasingly going to be looking to aqua-culture to meet our demand for seafood.”

The challenge for acquaculturists is that farmed fish are expensive to feed and maintain, and some do not respond well to aquaculture conditions. Breeding high-performing fish is critical to commercial success.

That’s where the Atlantic Cod Genomics and Broodstock Development project comes in. It’s mapping the genome of Atlantic cod to identify genes responsible for traits such as growth rate and resistance to stress or disease.

Halse explains, “It takes several generations of breeding to produce the best stock. By working with our partners in this genomics project, we’ll be able to identify markers on the fish DNA that will pinpoint specific traits. This will

allow us to increase the accuracy of our breeding program, making it much more efficient.”

Leading the project are Dr. Jane Symonds, Director of Aquaculture at the Huntsman Marine Science Centre in New Brunswick, and Dr. Sharen Bowman, a genomics spe-cialist at the Atlantic Genome Centre in Halifax.

The project will generate scientific data of benefit to the entire aquaculture industry in Atlantic Canada and will also provide superior breeding stock. The results will be far-reaching: an aquaculture industry better able to compete internationally; enhanced job prospects in coastal regions and Aboriginal communities; and the opportunity for Canada to export its equipment, knowledge and services.

Researchers will work closely with the project’s scientists and industry partners to examine ethical, environmental, economic, legal and social issues related to the genomics research applications (GE3LS). Questions include how benefits should be shared among research and commercialization partners, as well as the status of elite Atlantic cod brood-stock under Canadian environmental law.

Given the steady rise in demand for protein, the pressure to which many wild fish populations are subject and the globalization of the seafood market, the time has come to bring together genomics and aquaculture. This is another step in the journey begun in China millennia ago.


Through prudent management of resources, transparent administration of projects and rigorous monitoring of per-formance, Genome Canada strives to provide outstanding governance and stewardship of public funds.

Genome Canada reports to Parliament by way of the Minister of Industry, through an annual corporate plan and an annual report. It is governed by a Board of Directors composed of up to 16 individuals drawn from the academic, private and public sectors.

The Board of Directors oversees the management of the organization and, through its committees, conducts detailed examinations of issues and opportunities. The Board has in place a number of standing committees: Audit, Investment, Election, Corporate Governance, Compensation and Executive.

In addition, a Science and Industry Advisory Committee provides advice and expertise to the Board on an inte-grated strategy for research and development in genomics and proteomics in Canada.

BOARD AND COMMITTEE MEETINGS HELD DURING FISCAL yEAR 2006–07

Group Number of meetings held

Board of Directors 4

Executive Committee 7

Audit Committee 4

Investment Committee 4

Election Committee 3

Corporate Governance Committee

5

Compensation Committee 1

Science and Industry Advisory Committee

2

To monitor performance and report on results, Genome Canada has the following systems in place:• A funding agreement with Industry Canada lays

out specific terms and conditions related to perfor-mance, evaluation, audits and accountability.

• A Results-based Management and AccountabilityFramework defines the linkages among Genome Canada’s activities, outputs, expected outcomes and overall objectives.

• Individual funding agreements with the regionalGenome Centres contain specific performance and accountability requirements, including the tracking and reporting of data.

• Allprojectsandplatformsmustundergointerimre-view to assess progress toward approved objectives.

Appendix A of this report presents the results of close to 50 recently completed projects funded under Competitions I and II. A complete evaluation of Genome Canada will be conducted in 2008–09.

During the past year, Genome Canada worked with the regional centres to introduce a Recipient Audit Framework. This includes a process for identifying projects to be audited by the centres. The audits will begin in 2007–08.

In the summer of 2006, interim reviews were conducted of the projects funded in the Applied Genomics and Proteomics Research in Human Health Competition, as well as the Genome Canada–Genoma España Joint Projects. The International Science Review Committees recommended continuing all projects, with modifications in some instances.

Genome Canada agreed to be one of six case studies in a Treasury Board of Canada evaluation of the use of foundations and third-party organizations as instruments of public policy. The study concluded that corporations such as Genome Canada are effective instruments for delivering public policy objectives.

Governance and accountability


Genome Canada’s teamBoard of Directors

Executive CommitteeCorporate Governance CommitteeInvestment CommitteeAudit CommitteeCompensation CommitteeElection Committee

Science and Industry Advisory Committee

Executive and staff

Board of directors(as of March 31, 2007)

Calvin R. Stiller, C.M., O.Ont., M.D., F.R.C.P.C., Chair

Stilco Investments Limited, Ontario

Thomas J. Hudson, M.D., Vice-Chair President and Scientific DirectorOntario Institute for Cancer Research, Toronto

Lorne Babiuk, O.C., S.O.M., Ph.D., D.Sc., F.R.S.C. DirectorVaccine and Infectious Disease Organization University of Saskatchewan, Saskatoon

Alan Bernstein, O.C., F.R.S.C., ex officioPresidentCanadian Institutes of Health Research, Ottawa

William A. Bridger, Ph.D., F.R.S.C. R.M. Spencer & Associates, Edmonton

C. Thomas Caskey, M.D., F.A.C.P. Executive Vice-PresidentDepartment of Molecular Medicine and GeneticsUniversity of Texas, Houston

Pierre Coulombe, Ph.D., P.Eng., ex officio PresidentNational Research Council Canada, Ottawa

Natalie E. Dakers CEOCentre for Drug Research and Development, Vancouver

Connie J. Eaves, Ph.D. Professor Medical Genetics, Faculty of MedicineUniversity of British Columbia, Vancouver

Suzanne Fortier, B.Sc., Ph.D., ex officioPresidentNatural Sciences and Engineering Research Council

of Canada, Ottawa


Chad Gaffield, Ph.D., F.R.S.C., ex officioPresidentSocial Sciences and Humanities Research Council

of Canada, Ottawa

Martin Godbout, O.C., Ph.D. President and CEOGenome Canada, Ottawa

Kelvin K. Ogilvie, C.M., Ph.D., D.Sc., F.C.I.C., Hon. Col. Professor of ChemistryAcadia University, Wolfville, Nova Scotia

Jacques Simard, Ph.D., F.C.A.H.S. ProfessorCanada Research Chair in OncogeneticsFaculty of Medicine, Université Laval, Québec City

Officers(as of March 31, 2007)

Cindy Bell, Ph.D.Vice-President, Genomics Programs

Jean Brunet Desjardins, Ducharme L.L.P.Legal Counsel

Guy D’Aloisio, C.M.A.Vice-President, Finance

Marc DesmaraisVice-President, Government Relations

Carol Anne EsnardChief Administrative Officer

Michael Morgan, Ph.D.Chief Scientific Officer

Claudine Renauld, M.Sc.Vice-President, Communications and Public Affairs

Directors (1) Directors are not compensated for regular Board and Committee duties. However,

during the year ended March 31, 2007, the following directors provided additional services to Genome Canada and were remunerated as follows:

William A. Bridger $51,601Kelvin Ogilvie $ 3,250

(2) Genome Canada has entered into a management agreement with Hodran Consul-tants inc. which, as at March 31, 2007, provided for the services of Dr. Martin Godbout as Chief Executive Officer. Compensation for these services fell within the range of $334,820 to $401,784.


Stephen W. Scherer, Ph.D., F.R.S.C., ChairSenior Scientist, Genetics and Genomic BiologyDirector, Centre for Applied GenomicsAssociate Chief, Research Institute Hospital for Sick Children, Toronto

Brenda Andrews, Ph.D., F.R.S.C., Vice-ChairDirector, Terence Donnelly Centre for Cellular and

Biomolecular ResearchProfessor and Chair, Banting and Best Department

of Medical ResearchUniversity of Toronto

William Davidson, Ph.D., Past ChairProfessor, Department of Molecular Biology and

BiochemistrySimon Fraser University, Burnaby

Michael Ashburner, Ph.D.Professor, Department of GeneticsCambridge University, United Kingdom

Walter Blackstock, Ph.D.Principal Investigator, Proteomics and Biological

Mass SpectrometryInstitute of Molecular and Cell Biology, Singapore

Laura Brown, Ph.D.Senior Research Officer, Group LeaderInstitute for Marine BiosciencesNational Research Council Canada, Halifax

Timothy Caulfield, B.Sc., L.L.B., L.L.M.Professor, Faculty of Law and Faculty of Medicine

and DentistryResearch Director, Health Law InstituteUniversity of Alberta, Edmonton

David R. Cox, M.D., Ph.D.Chief Scientific Officer and Co-FounderPerlegen Sciences, Inc., California

Richard A. Gibbs, Ph.D.Director, Human Genome Sequencing CenterWofford Cain Professor, Department of Molecular

and Human GeneticsBaylor College of Medicine, Texas

Maud Hinchee, Ph.D.Chief Technology OfficerArborGen, LLC, South Carolina

Benoît S. Landry, Ph.D.Chief Executive OfficerFlorisys, Quebec

Dale E. PattersonExecutive Vice-President, Government Relations

and Regulatory AffairsCanadian Medical Discoveries Fund Inc., Toronto

Eddy Rubin, M.D., Ph.D.Director, Joint Genome Institute, US Department of EnergyDirector, Genomics DivisionLawrence Berkeley National LaboratoryUniversity of California at Berkeley

Shauna C. Somerville, Ph.D.Staff ScientistDepartment of Plant BiologyCarnegie InstitutionProfessor by CourtesyStanford University, California

Paul B. Thompson, Ph.D.ProfessorW.K. Kellogg Endowed Chair in Agricultural,

Food and Community EthicsDepartment of PhilosophyMichigan State University

James M. Tiedje, Ph.D.University Distinguished Professor of Microbiology

and Molecular Genetics, and of Crop and Soil Sciences Director, Center for Microbial EcologyMichigan State University

Science and Industry Advisory Committee(as of March 31, 2007)


Martin Godbout, O.C., Ph.D.President and CEO

Cindy Bell, Ph.D.Vice-President, Genomics Programs

Genny CardinAnalyst

JoAnn Crichlow, M.A., M.M.Program Manager

Guy D’Aloisio, C.M.A.Vice-President, Finance

Marc DesmaraisVice-President,

Government Relations

Karen Dewar, Ph.D.Director, National Genomics Programs

Carol Anne EsnardChief Administrative Officer

Chuck Hasel, Ph.D., M.B.A.Science and Technology Platform

Karen Kennedy, Ph.D.Director, International

Genomics Programs

Hélène MeilleurDirector of Operations

Shannon MondouxProgram Administrator, Data Manager

Michael Morgan, Ph.D.Chief Scientific Officer

Robert Moreau Comptroller

Claudine Renauld, M.Sc.Vice-President, Communications

and Public Affairs

Kate Swan, M.Sc.Program Manager

Normand Therrien, C.G.A.Finance Officer

Brigitte VaillantAdministrative Officer

hEAD OffiCE

150 Metcalfe Street,Suite 2100Ottawa, OntarioK2P 1P1

Tel. 613-751-4460Fax 613-751-4474Email [email protected] www.genomecanada.ca

AUDiTORs

KPMG LLP160 Elgin Street,Suite 2000Ottawa, Ontario K2P 2P8

Tel. 613-212-2879Fax 613-212-2896

LEGAL COUNsEL

Desjardins, Ducharme L.L.P.70 Dalhousie Street,Suite 300Québec City, QuebecG1K 4B2

Tel. 418-529-6531Fax 418-523-5391

ANNUAL GENERAL MEETiNG

June 15, 2006Edmonton, Alberta

Executive and staff(as of March 31, 2007)

Corporate information

EmployeesThe following individuals are employees of Genome Canada and have employment agreements including base salary and performance awards which, as at March 31, 2007, fell within the following ranges:

Karen Dewar, Director, National Genomics Programs $120,000–$132,000Karen Kennedy, Director, International Genomics Programs $120,000–$132,000

OfficersThe following individuals are Officers of Genome Canada and have employment agree-ments including base salary and performance awards which, as at March 31, 2007, fell within the following ranges:

Cindy Bell, Vice-President, Genomics Programs $175,000–$210,000Guy D’Aloisio, Vice-President, Finance $165,000–$198,000Marc Desmarais, Vice-President, Government Relations $159,650–$191,580 Carol Anne Esnard, Chief Administrative Officer $139,050–$166,860


Since its creation in 2000, Genome Canada has received $700 million from the federal government for the purpose of supporting large-scale, leading-edge research in genom-ics and proteomics. During this period, the corporation has realized a further $77 million in investment earnings, and this amount has also been applied to support research. In addition, all research projects supported by Genome Canada through this federal investment are required to be co-funded with other parties, including provinces, universi-ties, the private sector, and other national and international organizations. As at March 31, 2007, over $700 million in co-funding has been raised.

A rigorous competitive process determines which research projects and technology platforms throughout Canada will be funded. Projects are selected through a system of peer review; this includes an assessment of the scien-tific merit of the proposal, its feasibility, the track record of the applicants, the relevance and impact of the expected

results, and the quality of the plans for management, co- funding and technology transfer. Reviewers are chosen for their recognized expertise in the science and management of large-scale genomics/proteomics projects. They are all from the international scientific community to avoid conflict of interest. In addition, applicants are assessed by a second team of management, financial and scientific experts; these meet with representatives from each application, and conduct a thorough due diligence review to assess the management and financial rigour of the application.

Guided by the terms and conditions in the funding agreements with each of the six regional centres, Genome Canada disburses to them funds for approved projects and platforms across the country. The operations of the centres themselves are supported by Genome Canada. In turn each centre directs the funds to individual projects and platforms located in research institutions within its region.

Management discussion


Financial highlights

In the year ended March 31, 2007, Genome Canada disbursed a total of $91.9 million for both its own operations (7 percent), and for the funding of projects, platforms and Genome Centre operations (93 percent).

From its inception to March 31, 2007, Genome Canada disbursements to projects, platforms and Genome Centre operations have totalled $445 million.

In fiscal year 2006–07, $58.8 million was directed to projects approved through Competition III and the Applied Genomics and Proteomics Research in Human Health Competition.

As at March 31, 2007, a total of $193.5 million remains as deferred contributions, representing disbursements that will be made in subsequent years for Genome Canada operations and for approved projects and platforms.

Through the combined efforts of Genome Canada, the Genome Centres and project leaders, it is estimated that over $700 million in cofunding has been raised from inception to March 31, 2007, bringing the total committed value of investments in genomics and proteomics research through Genome Canada–funded projects to approximately $1.4 billion.


PROJECTS, PLATFORMS AND CENTRES 93%

GENOME CANADAOPERATIONS 7%

TOTAL EXPENDITURES$91.9 MILLION

SALARIES AND MANAGEMENT FEES 39.3%

EXTERNAL REVIEW PANELS AND COMMITTEES 14.5%

COMMUNICATIONS ANDPUBLIC OUTREACH 9.9%

OTHER 8.6%

PROFESSIONAL 8.0%

DEPRECIATION 1.0%

GENOME CANADA OPERATIONS$6.4 MILLION

WORKSHOPS ANDSYMPOSIA 7.2%

TRAVEL 5.2%

ACCOMMODATIONS 4.3%

GE3LS 2.0%

FY 2007–08 EXPENDITURES

FISCAL YEAR 2006–07$85.4 MILLION

CUMULATIVE SINCE 2000$455 MILLION

COMPETITION III 49.1%

APPLIED HUMAN HEALTH 19.8%

PLATFORMS 8.4%

GENOME CENTRES 8.3%

STRUCTURAL GENOMICSCONSORTIUM 7.4%

COMPETITION II 1.1%

GC/ESPAÑA 2.6%

COMPETITION II 33.0%

COMPETITION I 18.2%

PLATFORMS 13.2%

COMPETITION III 12.2%

APPLIED HUMAN HEALTH 9.8%

GENOME CENTRES 7.8%

GC/ESPAÑA 1.5%

OTHER 1.6%

OTHER 3.4%

STRUCTURAL GENOMICSCONSORTIUM 2.8%

PROJECTS, PLATFORMS AND CENTRESDISPERSED BY PROGRAM CATEGORY

fisCAL YEAR 2006–07

PROJECTs, PLATfORMs AND CENTREs bROkEN DOwN bY PROGRAM CATEGORY



CUMULATIVE SINCE 2000$445 MILLION

ONTARIO 37.1%

BRITISH COLUMBIA 27.0%

QUEBEC 18.6%

ALBERTA 7.8%

PRAIRIE 3.8%

ATLANTIC 5.7%

ONTARIO 32.8%

QUEBEC 25.7%

BRITISH COLUMBIA 22.7%

PRAIRIE 11.4%

ALBERTA 2.8%

ATLANTIC 4.6%

PROJECTS, PLATFORMS AND CENTRESDISPERSED BY REGION


PROJECTS, PLATFORMS AND CENTRESDISPERSED BY SECTOR

CUMULATIVE SINCE 2000–01$455 MILLION

HEALTH 64.1%

PLATFORMS 9.1%

CORPORATE 8.3%

AGRICULTURE 5.0%

NEW TECHNOLOGIES 0.3%

FORESTRY 3.3%

HEALTH 56.3%

PLATFORMS 13.3%

AGRICULTURE 5.9%

NEW TECHNOLOGIES 3.3%

ENVIRONMENT 2.0%

FISHERIES 2.0%

FISHERIES 5.3%

GE3LS 4.6%

CORPORATE 7.8%

FORESTRY 3.7%

GE3LS 2.9%

BIOINFORMATICS 2.8%

PROJECTs, PLATfORMs AND CENTREs bROkEN DOwN bY REGiON

PROJECTs, PLATfORMs AND CENTREs bROkEN DOwN bY sECTOR

As at the end of fiscal year 2006–07, funds not yet disbursed from grants received from the federal government, as rep-resented by deferred contributions, totalled $193.5 million. These funds are already committed to research projects and platforms approved in previous years through Competition III, the Applied Human Health competition and other re-search initiatives. They are scheduled to be fully disbursed by the end of fiscal year 2008–09.

In March 2007, the federal government announced additional funding for Genome Canada in the amount of $100 million, “to sustain funding for the regional genome centres and related technology platforms, extend promis-ing research projects and support Canada’s participation in strategic international research collaborations” (The Bud-get Plan 2007, Finance Canada, March 19, 2007, p. 203).

The Board of Directors of Genome Canada has approved the funding arrangement with the federal government in respect to this $100 million and has allocated funding ac-cordingly. The additional funding allows for the extension of platforms and projects in Competition III for an addition-al year, and provides financial support for a second phase of the Structural Genomics Consortium, an international research collaboration between Canada, Sweden and the United Kingdom.

In 2006–07, Genome Canada embarked on an exten-sive nationwide priority-setting exercise to identify areas for future genomics and proteomics research in Canada. The exercise will be completed in 2007–08. The results are expected to chart the strategic funding direction for genomics research in Canada for a number of years.

Outlook for 2007–08


The following provides data on performance and outcomes of close to 50 recently completed projects funded in Genome Canada’s first two competitions. The data have been self-reported by the project leaders through the Genome Centres in accordance with established guidelines. They demonstrate the broad scope of activities generated by federal government investments through Genome Canada.

Appendix A: results of completed projects, Competitions I and II

Competition I Competition II Total

FTEs (Full Time Employees) engaged 1,894 2,839 4,733

Researchers 146 328 474

Trainees

Post-doctoral 277 350 627

Graduate 346 351 697

Undergraduate 81 172 253

Other personnel (e.g. technicians and other highly qualified personnel)

1,044 1,638 2,682

Collaborators 146 273 419

Publications

Refereed papers 552 438 990

Chapters and books 152 89 241

Invited presentations 1,009 1,408 2,417

Awards received 60 160 220

Commercial activities

Disclosures 21 53 74

Provisional patents 11 22 33

Patents filed 9 25 34

Patents published 2 7 9

Copyright 2 3 5

Commercial licences in place 1 6 7

Companies formed 1 10 11


Financial statements2006–07

We have audited the statement of financial position of Genome Canada as at March 31, 2007 and the statements of opera-tions and changes in net assets and cash flows for the year then ended. These financial statements are the responsibility of the Corporation’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the finan-cial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In our opinion, these financial statements present fairly, in all material respects, the financial position of the Corporation as at March 31, 2007 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. As required by the Canada Corporations Act, we report that, in our opinion, these principles have been applied on a basis consistent with that of the preceding year.

Chartered Accountants, Licensed Public AccountantsOttawa, CanadaMay 1, 2007

Auditors’ report to the directors


year ended March 31, 2007, with comparative figures for 2006

2007 2006

AssetsCurrent assets:

Cash and cash equivalents (note 2) $ 15,516,992 $ 24,512,635Interest receivable 1,807,024 2,208,080Prepaid expenses 172,916 153,350Other receivables 102,729 109,459

17,599,661 26,983,524

Investments (note 3) 175,458,156 248,662,875Capital assets (note 4) 151,410 189,803

$ 193,209,227 $ 275,836,202

Liabilities and Net AssetsCurrent liabilities:

Accounts payable and accrued liabilities $ 523,007 $ 603,222

Deferred contributions (note 5) 192,534,810 275,043,177

Deferred contributions related to capital assets (note 6) 151,410 189,803

Net assets:Unrestricted net assets – –

Commitments (note 8)Guarantees (note 10)

$ 193,209,227 $ 275,836,202

See accompanying notes to financial statements.

On behalf of the Board:

Director Director

Genome CanadaStatement of Financial Position


year ended March 31, 2007, with comparative figures for 2006

2007 2006

Revenues:Amortization of deferred contributions (note 5) $ 91,810,299 $ 96,529,581Amortization of deferred contributions related

to capital assets (note 6) 67,483 70,117

91,877,782 96,599,698

Expenses:Contributions to Genome Centres

and approved projects 85,433,814 89,524,706General and administrative 4,211,010 3,785,197Communications and public outreach 638,405 984,052External committees 933,901 1,796,850Workshops and symposiums 464,712 374,652Ethical, environmental, economic, legal and social

issues related to genomics (GE3LS) 128,457 64,124Amortization of capital assets 67,483 70,117

91,877,782 96,599,698

Excess of revenues over expenses,

being net assets at end of year $ – $ –


Genome CanadaStatement of Operations and Changes in Net Assets


March 31, 2007, with comparative figures for 2006

2007 2006

Cash flows from operating activities:Excess of revenues over expenses $ – $ –Items not involving cash:

Amortization of capital assets 67,483 70,117Amortization of deferred contributions (note 5) (91,810,299) (96,529,581)Amortization of deferred contributions related to

capital assets (note 6) (67,483) (70,117)Excluded from the decrease in deferred

contributions (note 7) (1,257,735) (1,346,954)

(93,068,034) (97,876,535)

Interest received on investments (note 5) 10,960,723 9,853,215

Grant received from Government of Canada – 165,000,000

Increase in deferred contributions related to capital assets (note 5) 29,090 116,440

Change in operating assets and liabilities:Decrease in grant receivable from Government of Canada – 60,000,000

Decrease (increase) in other receivable 6,730 (32,000)Decrease (increase) in prepaid expenses (19,566) 149,171Decrease in accounts payable and accrued liabilities (80,215) (324,318)

(82,171,272) 136,885,973Cash flows from investing activities:

Disposition (purchase) of investments 73,204,719 (121,818,607)Purchase of capital assets (29,090) (116,440)

73,175,629 (121,935,047)

Increase (decrease) in cash and cash equivalents (8,995,643) 14,950,926Cash and cash equivalents, beginning of year 24,512,635 9,561,709

Cash and cash equivalents, end of year $ 15,516,992 $ 24,512,635

Supplemental cash flow information (note 7)


Genome CanadaStatement of Cash Flows


year ended March 31, 2007

The Corporation was incorporated on February 8, 2000 under the Canada Corporations Act as a not-for-profit orga-nization and has the following objectives:

(a) Develop and establish a co-ordinated strategy for genomics research to enable Canada to become a world leader in a few selected areas such as health, agriculture, environment, forestry and fisheries;

(b) Provide leading-edge technology to researchers in all genomics-related fields through support to six (6) genome centres across Canada, located respectively in British Columbia, the Prairies, Ontario, Quebec, Alberta and the Atlantic (“Genome Centres”);

(c) Support large-scale projects of strategic importance to Canada, which are beyond current capacities by bringing together industry, government, universities, research hospitals and the public;

(d) Ensuring leadership in the area of social, environmental, ethical and legal issues related to genomics by organizing intellectual resources and effectively communicate genomics to the public, helping Canadians understand the relative risks and rewards of genomics; and,

(e) Encouraging investment by other sources to fund genomics research.

1. Significant accounting policies:

(a) Cash and cash equivalents:

Cash and cash equivalents consist of cash as well as highly liquid short-term investments. The Corporation considers highly liquid short-term investments as those having a maturity of less than three months from the date of acquisition.

(b) Investments:

Investments are recorded at cost. If the market value of investments becomes lower than cost and this decline in value is considered to be other than temporary, the investments are written-down to market value. Any discount or premium arising on purchase of bonds is amortized using the straight-line method over the remaining term.

(c) Revenue recognition:

The Corporation follows the deferral method of accounting for contributions which include grants from the Government of Canada.

Genome CanadaNotes to Financial Statements



1. Significant accounting policies (continued):

(c) Revenue recognition (continued):

Externally restricted contributions and related investment income are recognized as revenue in the year in which the underlying expenses are incurred. A receivable is recognized if the amount to be received can be reasonably estimated and collection is reasonably assured.

Externally restricted contributions for purchase of capital assets are deferred and amortized to revenues on the declining balance basis at a rate corresponding to the amortization rate for the related capital assets.

(d) Capital assets:

Capital assets are stated at cost. Amortization is provided for using the declining balance method at the following annual rates:

Asset Rate Furniture and fixtures and office equipment 20% Computers and software 50% Telecommunication equipment 30% Leasehold improvements are stated at cost and amortized using the straight line method over the term of

the lease.

(e) Pension plan:

The Corporation maintains, for the benefit of almost all of its employees, a defined contribution pension plan. The cost of the plan is recorded in the statement of operations as it is incurred. The charge for the year totals $125,115 ($93,006 in 2006).

(f) Use of estimates:

The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, dis-closure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Accordingly, actual results could differ from these esti-mates. These estimates are reviewed annually and as adjustments become necessary, they are recorded in the financial statements in the year in which they become known.

Genome CanadaNotes to Financial Statements, Continued



2. Cash and cash equivalents:

2007 2006

Cash $ 269,197 $ 116,568Short-term investments 15,247,795 24,396,067

$ 15,516,992 $ 24,512,635

3. Investments: 2007 2006 Cost Market Cost Market

Government of Canada bonds $ 36,570,439 $ 36,740,955 $ 60,314,077 $ 59,989,466Corporate bonds and debentures 74,776,409 73,496,084 108,751,471 107,436,084Mortgage-backed securities 27,970,942 28,069,868 30,798,512 30,865,222Provincial Governments bonds 36,140,366 35,795,126 48,798,815 48,283,880

$175,458,156 $174,102,033 $248,662,875 $246,574,652

The interest rates at the end of the year range from 1.52% to 7.00% (2.97% to 7.00% in 2006) and maturity dates vary from May 21, 2007 to February 12, 2037 (June 15, 2006 to February 12, 2037 in 2006).

4. Capital assets: 2007 2006 Accumulated Net book Net book Cost amortization value value

Furniture and fixturesand office equipment $ 184,076 $ 101,596 $ 82,480 $ 101,380

Computers and software 243,383 202,988 40,395 43,050Telecommunication equipment 29,884 18,905 10,979 12,769Leasehold improvements 72,681 55,125 17,556 32,604

$ 530,024 $ 378,614 $ 151,410 $ 189,803

Cost and accumulated amortization at March 31, 2006 amounted to $500,934 and $311,131 respectively.




5. Deferred contributions:

The Corporation receives grants from the Government of Canada to be held, invested, administered and disbursed in accordance with the related funding agreement between Genome Canada and the Government of Canada.

Deferred contributions related to expenses of future periods represent these unspent externally restricted grants and related investment income, which are for the purpose of providing grants to eligible recipients and the payment of operating and capital expenditures in future periods.

Deferred contributions consist of:

Balance as Transactions Balance as Transactions Balance as at March 31, during at March 31, during at March 31, 2005 the year 2006 the year 2007

Grants $ 435,000,000 $ 165,000,000 $ 600,000,000 $ – $ 600,000,000Investment income:

Interest received 55,973,352 9,853,215 65,826,567 10,960,723 76,787,290Interest receivable 998,444 1,209,636 2,208,080 (401,056) 1,807,024Gain (loss) on disposal 1,803,942 (203,603) 1,600,339 (1,816,354) (216,015)Amortization of

discounts/premiums (196,677) (1,026,911) (1,223,588) 587,709 (635,879)

58,579,061 9,832,337 68,411,398 9,331,022 77,742,420Amount amortized to

revenues (296,337,708) (96,529,581) (392,867,289) (91,810,299) (484,677,588)Amount invested in

capital assets (384,492) (116,440) (500,932) (29,090) (530,022)

$ 196,856,861 $ 78,186,316 $ 275,043,177 $ (82,508,367) $ 192,534,810




6. Deferred contributions related to capital assets:

Deferred contributions related to capital assets represent restricted contributions with which capital assets were originally purchased. The changes in the deferred contributions balance for the year are as follows:

2007 2006

Balance, beginning of year $ 189,803 $ 143,480Add restricted contributions 29,090 116,440Less amounts amortized to revenue (67,483) (70,117)

$ 151,410 $ 189,803

7. Supplemental cash flow information: 2007 2006

Non-cash transactions excluded from the increase (decrease)in deferred contributions (note 5):

Loss on disposal of investments $ (1,816,354) $ (203,603)Amount transferred to capital assets (29,090) (116,440)Amortization of discounts/premiums from fixed-term investments 587,709 (1,026,911)

$ (1,257,735) $ (1,346,954)




8. Commitments:

The Corporation is committed to finance research projects and operating expenses submitted by the Genome Centres for Competition III, Genome Spain and Applied Human Health as well as projects approved under the International Consortium Initiative. As at March 31, 2007 the payments committed for the next two fiscal years are approximately: $81,700,000 in 2008 and $87,500,000 in 2009.

The Corporation has entered into a management agreement expiring in July 31, 2008. As at March 31, 2007, the payments for the next two fiscal years amount to $344,865 in 2008 and $114,955 in 2009.

The Corporation has entered into three consulting agreements expiring at various dates in 2007, the payments for the next fiscal year amount to $266,000.

The Corporation has entered into an operating lease for its premises expiring on May 31, 2008. Minimum lease pay-ments for the next two fiscal years amount to $124,269 in 2008 and $20,691 in 2009.

9. Fair value of financial instruments:

The carrying value of cash and cash equivalents, interest receivable other receivables and accounts payable and accrued liabilities approximates their fair value because of the relatively short period to maturity of the instruments.

The fair values of the investments is disclosed in note 3 to the financial statements.

10. Guarantees:

In the normal course of business, the Corporation has entered into a lease agreement for premises. It is common in such commercial lease transactions for the Corporation as the lessee, to agree to indemnify the lessor for liabilities that may arise from the use of the leased assets. The maximum amount potentially payable under the foregoing indemnities cannot be reasonably estimated. The Corporation has liability insurance that relates to the indemnifica-tions described above.


AcknowledgementGovernment of CanadaGenome Canada would like to thank the Government of Canada for its support.

Documents

What if - Genome Canada€¦ · Autism is believed to have a strong genetic basis but the actual cause is still unknown. Some 200,000 Canadians are living with autism, which occurs