Commercial Subsidiaries
20
Aims and activities
Established 25 years ago, the mission of Mylnefield
Research Services Ltd (MRS) is to generate
commercial income via intellectual property
developed at the Institute, diversify the funding
base and reduce the reliance of the Institute on
government funding.
MRS is part of the James Hutton Institute Group
and is closely integrated in many of its activities.
MRS encourages and values the commercial
partnerships that facilitate taking products and
services to the market.
Activities in 2013-14 focused on:
•
developing products based on Institute expertise
in cereal, potato and soft fruit crops
•
protecting intellectual property and managing
547 commercial licences around the world in 22
countries.
Business Plan “Going for Growth”
In April 2013, MRS launched its ambitious Business
Plan 2013-2016 “Going for Growth”. The Business
Plan aims to make a significant contribution to the
finances of the James Hutton Institute and to invest
in facilities, capital and human resources for future
business growth.
MRS exceeded its first year Business Plan target
and recorded its highest turnover to date. Key
statistics include:
•
annual turnover of £4,380,000, a significant
increase of 40% on the record turnover of 2012-
2013 (£3,125,200)
•
operating profit of £523,000 compared to
£475,000 for 2012-2013: this enabled MRS to gift
aid a record £400,000 (£300,000 for 2012/2013)
to the James Hutton Institute
•
shareholders’ funds strengthened by £136,000
to £1,151,000 (a further record) compared to
£1,015,000 for 2012-2013.
Analytical Services:
Income for the Lipid Analysis division, Mylnefield
Lipid Analysis (MLA), was 6% lower than the
previous year at £388,745 (£414,542 for 2012-
2013). Lipid Analysis income accounts for 9% of the
turnover of MRS.
A possible explanation for the above relates to
recent reports suggesting that Omega-3 fatty
acids may not help protect against coronary
artery disease and may result in an increased
risk of prostate cancer. These adverse claims
caused a decrease in sales of Omega-3 nutritional
supplements and consequently reduced demand
for lipid analyses by MLA. To counter the potential
long-term downturn in this business sector MLA
has been concentrating on growing the business in
the pharmaceutical sector.
MLA was successfully inspected by the US Food and
Drug Administration (FDA) for Good Manufacturing
Practice (GMP). This adds to accreditation by the
UK Medicines and Healthcare products Regulatory
Agency (MHRA) for both GMP and Good Clinical
Practice (GCP), thereby strengthening its offering in
this sector.
“During 2013-14,
MRS was publicly
recognised with
several awards”
21
Contract Research
Contract research income reversed the slight
decline of the previous year and grew by 65%. This
area is MRS’s most important sector, accounting for
74% of turnover (62% for 2012-2013).
The very significant growth in contract research
was largely due to two major new contracts in the
area of crop protection and nutrition and potato
research and development. MRS continues to
diversify its customer base which includes multi-
nationals as well as Scottish SMEs.
Contract plant breeding with industry partners is
central to MRS’s product development and future
royalty and licensing income streams. The total
value of contracts signed during the financial year
2013-2014 stands at £2,431,085 (£2,540,592 for
2012-2013) which will impact on income in the
next financial year.
Licensing, Royalties and Intellectual
Assets
Royalty income of £565,230 (£485,621 for 2012-
2013) was a record and, for the first time, exceeded
£500,000. Royalty income accounts for 13% of
turnover and was 27% ahead of budget. This gain
was helped by increased royalty returns for brassica
varieties in New Zealand. Raspberry varieties, Glen
Lyon and Glen Ample, are still the top two royalty
earners, respectively followed by the blackberry
variety, Loch Ness, and the strawberry variety
Symphony. The new potato Gemson has one of
the UK’s highest rates of uptake for a new potato
variety.
The Plant Variety Rights (PVR) portfolio continued
to strengthen. Highlights include:
•
PVR granted for Glen Ample raspberry in Canada
•
PVR applications submitted for two older potato
varieties – Mayan Gold in Belarus and Lady
Balfour in Lebanon – and one new raspberry in
the EU
•
three UK National Listing applications submitted
for superior potato clones
•
two US plant patents granted for blackcurrants
Ben Coma and Ben Chaska
•
three EU and US Trademark applications
submitted for Glen Lyon and Glen Ample
raspberries and Loch Ness blackberry
•
application filed for a New International Patent
Co-operation Treaty (PCT) Patent “Nanoparticles”
•
provisional Patent Application was also filed
for “Potato Plants that Maintain Tuber Yield at
Elevated Temperatures”.
Award-winning achievements
The record financial year is one accolade, however,
during the year 2013-14, MRS was also publicly
recognised with several awards: The Courier
Agriculture Business of the Year; Dr Nigel Kerby was
awarded MBE for services to business and science
in the New Year Honours list; and Dr Kerby was also
awarded the Tayside Regional Director of the Year
by the Institute of Directors Scotland.
These personal and business awards reflect the
commitment, skills, expertise and enthusiasm of
the staff of MRS and the James Hutton Institute.
