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2024-12-31-accounts

Annual report and accounts 2024

Making life science life changing

Annual review | 2024 | LifeArc

Contents

Contents
Forewords 02
Trustees' report 05
People report 14
Strategic report 18
Risk report 21
Financial review 24
Investment portfolio review 25
Reserves policy 26
Carbon report 27
Structure, governance and management 30
2024 accounts 42

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Annual report and accounts | 2024 | LifeArc

Forewords

Note from our Chair of the Board

2024 was a pivotal year for LifeArc, marked by significant strides towards tackling underserved conditions. We enhanced our role in bridging the gap between scientific innovation and patients, advancing discoveries that have the potential to transform lives. Additionally, we drove forward initiatives that address some of the most overlooked conditions, underscoring our commitment to making meaningful impact for patients.

LifeArc seeks to act as a catalyst for innovation. We have always focused on tackling complex and overlooked health challenges, bringing together expertise and resources to move science forward. This year, we made significant progress in areas such as motor neurone disease, dementias, and chronic respiratory infections. A key highlight was our launch of the Childhood Cancer Translational Challenge. These efforts exemplify our dedication to ensuring that promising research reaches people with underserved conditions.

We also invest in the infrastructure and networks that underpin progress. In rare diseases, we committed £40 million to establish four Translational Centres for Rare Disease with a range of partners across the country. These centres bring experts together to overcome the persistent challenges of fragmented expertise, dispersed patient populations and limited funding. Similarly, we co-founded the UK’s first network of Cystic Fibrosis Lung Health Innovation Hubs with Cystic Fibrosis Trust, to accelerate the development of new diagnostic tools and therapeutic approaches to detect, treat and manage lung infections. And through our experienced Ventures team, we continued to invest in life changing science, bolstering early-stage companies with advice, scientific insight and funding.

Gene therapy is another area where we’re championing innovation. The gene therapy innovation centres we are sponsoring in London, Bristol and Sheffield provide vital facilities for researchers working on gene therapies, often targeting rare diseases which can lack research attention due to small patient populations. LifeArc is continuing to focus on this critical area, opening new avenues for discovery and development to ensure that patients with rare diseases are not left behind.

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Annual report and accounts | 2024 | LifeArc

Partnerships remain central to our work. We’re participating in groundbreaking programmes such as Our Future Health, which aims to use population genomics to transform the understanding of disease and its treatment across diverse populations. Our collaboration with the UK Dementia Research Institute is focussed on advancing new diagnostic and therapeutic approaches for dementia. We also deepened our commitment to tackling antimicrobial resistance by making a major commitment to, and becoming a founding partner of, the Fleming Initiative. These partnerships highlight the way in which LifeArc seeks to address global health challenges in collaboration with diverse stakeholders including research institutions, policymakers and industry.

Our people have been at the heart of this progress. Dr Sam Barrell joined us as CEO in the autumn, bringing energy, vision and strong leadership which puts us in a powerful position going forward. We have also been joined by our first Chief Medical Officer, Dr Jonathan Morgan, who will play a crucial role in shaping our clinical research agenda. I’m delighted that we have appointed two additional scientific chairs to support our disease-specific areas. These distinguished leaders bring invaluable expertise and have expanded our global networks, accelerating progress and ensuring LifeArc remains at the forefront of

translational science.

Looking ahead, we’re excited to build on this momentum and pursue bold, long-term initiatives. Our plans include further developing our programme to deliver tangible patient outcomes, continuing to expand our data science capability, and advancing the consolidation of our operations into a new facility.

I am incredibly proud of what we have achieved. With a sharper focus, strong partnerships and an exceptional team, we’re positioned to make significant further progress in 2025. Together we’re harnessing innovation to make a lasting difference to the lives of people with underserved conditions.

Ian Gilham,

Chair of the LifeArc Board of Trustees

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Annual report and accounts | 2024 | LifeArc

Note from our Chief Executive Officer, CEO of LifeArc, and our Deputy CEO and Chief Financial Officer

2024 has been defined by transformation and exciting beginnings.

We continued to align every part of LifeArc to better deliver on our mission to progress innovations that could help those with rare and underserved conditions, where limited commercial incentives, complexity or high risk have hindered progress.

We collaboratively established a series of translational centres and hubs for both rare disease and lung health with charity, academic and patient partners from around the UK; co-started an international drug discovery consortium for childhood cancer; funded multiple new clinical trials; conducted our first motor neuron disease community workshops and surveys; and launched our antibody discovery capabilities.

Partnership was critical for each of those initiatives and in all that we do. Alongside advancing our data science capabilities to enhance our ability to conduct patientfocused research, we joined Our Future Health – the world’s largest dataset of its kind for health research. We also deepened our efforts to tackle antimicrobial resistance through a partnership with the Fleming Initiative.

Central to this year’s transformation were the strides made in planning for a building in London’s King’s Cross Knowledge Quarter. This new hub will foster collaboration and innovation, improving our ability to deliver cuttingedge translational science.

The people who work at LifeArc have been crucial in our ability to deliver so many important and potentially lifechanging projects. We welcomed several new leaders, including a chief medical officer and chief people officer, as well as many new colleagues. Our heartfelt thanks go out to our teams in London, Stevenage and Edinburgh for their dedication to our mission.

LifeArc is poised for continued transformation in 2025. With our partners, we will continue to create positive impact for people with rare and underserved conditions and to tackle global health challenges such as resistant infections. We look forward to 2025 and beyond, as we strive to help those with unmet health needs and continue to make life science life changing.

Dr Sam Barrell CBE Chief Executive Officer

Stéphane Maikovsky Deputy Chief Executive Officer (CEO) Chief Financial Officer (CFO)

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Trustees, report

Annual report and accounts | 2024 | LifeArc

Who we are and what we do

At LifeArc, our mission is to enable science to get health breakthroughs to people with underserved conditions faster.

Translating scientific discoveries into the next drug, diagnostic or device is a long, expensive and unpredictable process. We help to remove barriers to this translation by bridging the gaps between the lab and the patient.

We do this by:

Our purpose, vision and mission

Purpose

To bridge the gap between academic research and clinical development by catalysing scientific discoveries into the next generation of diagnostics, devices, treatments and cures.

Vision

To enhance human health and wellbeing across the globe by removing the barriers that prevent discoveries becoming rapidly available to people with rare diseases and in global health.

Mission

As a self-funded charity, we can focus on medical challenges that may otherwise be overlooked due to their complexity, risk or commercial uncertainty. This means our priorities can be informed by the needs of people with underserved conditions.

Our mission is to make an impact for people with underserved conditions, by convening the ecosystem to translate scientific discoveries into treatments, tests and other technologies, through innovative science, expert advice, contribution to public policy, and access to funding. This mission is informed and guided by experts, including patients, carers and their families.

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Annual report and accounts | 2024 | LifeArc

Strategy and achievements

Throughout 2024, we continued to help bridge the gap between the lab and the clinic to bring new advances to people with underserved conditions, fuelled by strategic partnerships and our expertise in translation.

We bring people together to form strong partnerships, combining expertise and resources. By working with experts – including patients, caregivers and families – we gain knowledge to help us focus on what matters most.

Major collaborations forged in 2024 include our partnership with Our Future Health (OFH), Britain’s largest health research programme of its kind, and announcing our intention to invest in the Fleming initiative, as a founding partner. Both unite partner knowledge and resources to accelerate health improvements. Our partnership with OFH will advance research across our Translational Challenges such as motor neuron disease, respiratory health, and rare diseases, while the Fleming Initiative is a multidisciplinary approach to tackling antimicrobial resistance (AMR).

Patient and public engagement remained an important focus of our work, ensuring lived experiences are embedded into our research priorities. This included sharing our own public engagement framework and joining the Shared Commitment to Public Involvement, alongside 25 other leading health and research organisations.

In 2024, we launched our new brand and website, reflecting the evolution of our strategy and position within the translational science ecosystem. We were also delighted to convene more than 700 attendees for the inaugural LifeArc Translational Science Summit in April. The one-day event featured presentations and insights from leading scientists, experts, policy makers and innovators on how translational science can bridge the gap between basic research and clinical applications.

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Annual report and accounts | 2024 | LifeArc

Our Translational Challenges

Following 2023’s strategy refresh, we continue to channel our research efforts through our Translational Challenges:

Priority areas with the potential to translate science into impact for people with underserved conditions such as motor neuron disease, chronic respiratory infection, childhood cancer, and in global health. We continue to refine our priorities in these spaces, to ensure we use our resources in a way that achieves the greatest patient impact.

Motor neuron disease (MND): a world where MND is preventable and treatable

We use our expertise to progress discoveries that could enable earlier intervention, better treatment and improved quality of life for people living with MND. More broadly across neurodegeneration, we also invest in Alzheimer’s disease and dementia research.

Highlights from 2024 include:

Chronic respiratory infection: improving lives of people with respiratory conditions

We progress innovations and clinical solutions for the detection, treatment and management of cystic fibrosis (CF) and bronchiectasis, a condition of the airways – aiming to break the cycle of infection, inflammation and lung damage to support those affected to live longer, with an improved quality of life.

Highlights from 2024 include:

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Annual report and accounts | 2024 | LifeArc

Childhood cancer: driving a paradigm shift in how we diagnose and treat childhood cancers

In 2024, we announced our new childhood cancer research strategy, driven by collaboration and partnership, which we hope will catalyse sustainable change for children with cancer.

Highlights from 2024 include:

Rare disease: a collaborative research ecosystem working to overcome barriers to progress

We’re taking a holistic approach to rare conditions by tackling the systematic issues preventing discoveries in the lab from reaching the next phase of development, and ultimately the people who need them.

Highlights from 2024 include:

Global health: affordable, accessible solutions for infectious diseases

Resistant infections are some of the biggest challenges to human health. Antimicrobial resistance is one of the World Health Organization’s top 10 public health threats. Our focus is on controlling and preventing resistant infection. We have tightened our global health focus which until recently also incorporated neglected tropical diseases.

Highlights from 2024 include:

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Annual report and accounts | 2024 | LifeArc

LifeArc Ventures

In addition to our Translational Challenges, we invest in science-led companies that are developing promising health-related innovations.

LifeArc Ventures made substantial progress in 2024, with 3 new investments, several follow-on investments, and scientific advances by a number of our portfolio companies.

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Annual report and accounts | 2024 | LifeArc

Our science capabilities

We’ve implemented and finalised several strategic changes to our capabilities this year, as we continue to develop plans for a new LifeArc building.

This included expanding our therapeutics platform to include antibody discovery, with the launch of our advanced B-SMArT™ (B cell Screening Method for Antibody Therapeutics) platform. We are now able to produce fully human antibodies for almost any viable target, ready for preclinical testing.

Alongside antibody discovery, we have generated nearly 100 monoclonal antibodies through our humanisation platform, including immuno-oncology drug Keytruda® (commercialised by Merck) which, in 2024, was approved for its 40th indication. An antibody we humanised with KisoJi Biotechnology Inc also reached a new milestone this year, entering a Phase 1/2a clinical trial. The antibody targets a molecule found in high levels on many hard-totreat solid cancers, such as lung, ovarian and pancreatic cancers, and could offer a new treatment for people with underserved conditions who currently face poor prognoses.

We continued to establish solid foundations for growing our data sciences capabilities. LifeArc’s data science team harnesses the power of data computation and informatics to deliver patient-focused solutions, complementing traditional therapeutic approaches. We now encompass clinical data science, artificial intelligence and machine learning, computational chemistry, bioinformatics, and data engineering to generate practical insights, tools, and knowledge that help answer critical healthcare questions. The data science team also supports drug discovery by optimising small molecule design. Since its inception in 2019, the team has grown from 6 members to 19 in 2024, with plans to recruit 6 more members in 2025.

A major 2024 milestone was joining Britain’s largest health research programme, Our Future Health (OFH), as a charity partner. LifeArc aims to leverage the large-scale, longitudinal data to address underserved conditions. OFH will provide valuable data that can be used to identify new biomarkers for disease, as well as developing new tests and treatments.

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Annual report and accounts | 2024 | LifeArc

Plans for the future

Across 2025, our major priorities include continued channelling of research efforts through our existing disease areas and cementing our plans for the consolidation of our London and Stevenage sites into one new building in London’s Knowledge Quarter, King’s Cross.

Another key focus is our aim to support more innovations to reach and enter clinical trials, ensuring life-changing treatments reach people with underserved conditions faster.

Our Translational Challenges

Looking ahead, we’ll continue to refine our focus to ensure we prioritise innovations with the greatest potential to benefit people with underserved conditions. We have embraced a mindset of constant evaluation and adaptation, guided by patient involvement and advances in science, to ensure we can respond quickly to emerging trends and opportunities. We look forward to evolving our existing partnerships and forming new collaborations, fuelled by the progress we’ve made to date.

A new home for our work

The translational research ecosystem is complex, comprising many partners and areas of expertise. Within the next 3 years, we plan to open a new facility in London, which aims to be a model of partnership that boosts translation science and improves the lives of people with underserved conditions.

We have now secured a home for this building, at the heart of London’s knowledge quarter in King’s Cross. We hope this central location will serve as a convening point for the translational community. Over the next year, we will work with employees, partners and people with underserved conditions to ensure the space meets our needs, with sustainability principles embedded into its design.

We hope that this central, go-to location will nurture a vibrant culture at LifeArc, centred around learning and development and collaboration.

Financial sustainability

As a self-funded charity, we work hard to ensure we have the long-term financial sustainability to support our activities and commitments. Our income is derived from several sources, including our investment portfolio, LifeArc Ventures, and royalties from the projects we collaborate on. We expanded our services in 2024 to include antibody discovery, the revenue and royalties from which we hope will provide support for our activities well into the future.

Another fundamental source of our income is our investment portfolio. We invest in a diverse portfolio to spread our risk across many asset classes. These include global equities, fixed income investments, private markets, infrastructure, real estate and hedge funds. Over the long term, we seek to outpace UK annual wage inflation by 3.5%, with the returns on our investment used to fund future translational activity. We also expect our LifeArc Ventures companies to provide us with financial returns, in addition to delivering positive impact for people with underserved conditions.

Our wider commitments to sustainability include conducting our business responsibly through appropriate environmental, social and corporate governance, internal control and risk management, developing and retaining our talent and building our reputation across the ecosystem.

LifeArc’s significant financial income in any given year is not directly linked to that year’s expenditure. This is because our income primarily comes from royalties on medical interventions we helped develop in the past or from long-term investments. As a result, we adopt a long-term approach to managing income, expenditure, and reserves.

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Annual report and accounts | 2024 | LifeArc

In 2024, we received substantial royalties and research contract income mainly from Keytruda, resulting in a surplus of £182.6 million. Since these royalties are time-limited and will not continue indefinitely, the surplus is invested to ensure the organisation’s ongoing financial sustainability.

Patient involvement

Working in partnership with patients and the public is essential for achieving our mission at LifeArc. Across 2024, we consulted with people affected by the conditions we’re researching to understand their perspectives on the most underserved conditions, and areas of the patient pathway which need improvement.

Establishing enduring leadership at LifeArc

We are hugely grateful to the individuals who have led LifeArc through the changes of the recent years, as we have grown our ambitions and delivered a number of significant achievements.

Following a period of extensive recruitment, we are delighted to welcome new, permanent leaders to the LifeArc team, outlined in full on page 33. We look forward to working with our executive management team in delivering our vision to make life science truly life changing.

We recently signed the Shared Commitment to Public Involvement, demonstrating our continued commitment to drive up standards of health research with improved quality of patient and public involvement.

We want to see more growth in this area and are developing tools, resources and guiding principles to help us and others across the scientific community actively involve public and patients in research. Across 2025, we’ll continue to consult patient advisory groups to ensure the voices of those with lived experiences guide our work.

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People report

Annual report and accounts | 2024 | LifeArc

Our ‘people first’ strategy centres around 4 core priorities that enable our significant ambitions and support our people to thrive.

Culture and employee experience

Our regular employee engagement surveys help us gain a deep understanding of the employee experience. In the latest survey, 84% of staff said they felt proud to work for LifeArc.

Performance and reward

Our philosophy at LifeArc is to foster high employee engagement and performance in an environment that supports people to build on their strengths while also acting on areas of opportunity.

Equity, diversity and inclusion (ED&I) principles are fundamental to who we are as an organisation, to our overall performance, and to our ability to drive impact.

For example, our new carers policy provides a clear framework for supporting people with caring responsibilities and who may need flexible work arrangements. We also hosted a series of events throughout the year, including celebrating heritage and awareness months and National Inclusion Week in September, and providing training on unconscious bias.

This year, we were awarded the TIDE bronze award from our partners at the Employers Network for Equality and Inclusion, which provides us with additional guidance on focus areas for our continued progress in ED&I.

We issued the first bonus payments through our updated annual incentive plan in April, rewarding colleagues for their contributions to both organisational and individual objectives. We use a technology platform that facilitates a consistent approach to performance management, providing data insights that enable us to make more informed and equitable decisions.

We’re continuing to adapt our ways of working to help eliminate bias, including in recruitment and supporting progression. We’re proud of the number of women we recruited across 2024 – including 8 into senior roles – but we know there’s more to be done. More information is included in our gender pay gap report which we published this year, having measured and reported this data since 2021. You can find the published report on our website.

Our colleague support networks continued to thrive this year and, with the addition of one new network, we are proud to now support the LGBTQ+, Neurodiversity, Parents and Carers, and Menopause Networks. Across 2025, we will continue our journey towards an even more inclusive workplace.

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Annual report and accounts | 2024 | LifeArc

Learning and career

We invest in a range of learning opportunities and experiences to support our people’s development.

Across 2024, we delivered the first full round of our LifeArc Manager Accelerator (LMA) programme, equipping more than 90 people managers with the skills to lead and develop their teams effectively. Managers who took part reported a 49% increase in self-assessed skills and we are supporting them to embed their learnings into daily practice. We will launch a new LMA cohort in 2025, expanding its reach and influence.

The future of life sciences research depends on attracting diverse talent and we offer several programmes for people early in their career. We continued to make strides in this area for our industrial placement (IP) programme, welcoming 9 students in September to gain work experience with our science teams. We received 506 applications for the 2025/26 cohort. We are pleased to welcome 6 students in September 2025.

The LifeArc Manager Accelerator programme led to a 49% increase in selfassessed skills

In 2024,

4 new LifeArc fellows were supported

17 people

completed the LifeArc Knowledge Transfer Fellowship

We supported

8 new fellows through the Crick Africa Network

Nearly 100 alumni have now taken part in the LifeArc Knowledge Transfer Fellowship, which equips scientists with skills in business and law to transition into highly demanded knowledge transfer careers across academia, industry, government and venture funding. In March, we supported the second round of the Crick Africa Network, with 8 new fellows from The Gambia, Ghana, Uganda and South Africa beginning a 4-year training programme before establishing independent research groups and careers on the African continent.

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Annual report and accounts | 2024 | LifeArc

Talent

We continued to build on our successful hiring programme and have recruited a number of talented individuals to the LifeArc team across 2024. We’re particularly proud of our growth in the data sciences field, which can be challenging given the small, unique nature of this talent pool.

This year, we transitioned to an in-house recruitment model, which will support our sustainable growth and significantly reduced our hiring costs. We’re pleased to see our new brand growing in traction and awareness, reflected in the quality, breadth and depth of applications and expressions of interest we receive for new job opportunities.

84% of our colleagues say they are proud to work for LifeArc

This year, more than 80 people joined the LifeArc team

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Strategic report

Annual report and accounts | 2024 | LifeArc

Strategic report

LifeArc is a charity registered in England and Wales. It is also registered in Scotland.

Our Board of Trustees are responsible for ensuring the charity complies with the law and our governing documents and that we achieve our purpose of bridging the gap between academic research and clinical development, to get new innovations to people with underserved conditions faster.

Charitable objectives

Public benefit

The trustees have paid due regard to the public benefit guidance published by the Charity Commission and the Charity Commission’s general guidance when reviewing their aims and objectives and in planning future activities. In particular, the trustees have considered how planned activities will contribute to the organisation’s aims and objectives.

LifeArc’s Articles of Association set out our charitable objectives:

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Annual report and accounts | 2024 | LifeArc

Promoting LifeArc’s success

The trustees have a duty to promote LifeArc’s success by advancing its charitable objectives to promote medical research for the benefit of the public. In doing so they are required by section 172(1) of the Companies Act 2006 to take into account a number of factors. These include:

The likely consequences of any decision in the long term

The Board is responsible for setting and keeping under review LifeArc’s strategic direction. All major decisions likely to affect the long-term future of the organisation are discussed at board meetings or meetings of the relevant committee.

The impact of the company’s operations on the community and the environment The impact of the company’s operations on the community and the environment

The carbon report on page 27 outlines LifeArc’s greenhouse gas emissions and activities designed to reduce our environmental impact.

The desirability of the company maintaining a reputation for high standards of business conduct

We are proud to maintain a high standard of business conduct and our trustees are alerted to any matters that might cause a reputational risk to the organisation. Upon accepting appointment, all trustees agree to our Code of Conduct for Trustees.

The interests of the company’s employees

The Board recognises that having a talented and diverse workforce, in whom we invest, is key to our ability to deliver on our strategic ambitions. Further details on what we are doing in this area can be found in the people report on page 14.

The need to act fairly between members of the company

As a company limited by guarantee, LifeArc does not have any shareholders. Serving trustees are LifeArc’s only members.

The need to foster the organisation’s business relationships with suppliers, customers and others

Our relationships with our suppliers and collaborators are critical to our success. Our business practices promote fairness, openness and integrity, and this is reflected in the way we do business with others. We work closely with our suppliers to ensure that we receive high standards of supplies and services. We work closely with a range of academic, charitable and commercial organisations, as well as patient groups, in pursuit of our strategic goals.

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Annual report and accounts | 2024 | LifeArc

Risk report

The Board sets LifeArc’s strategic objectives, annually reviews risk appetite, and sets the risk management policy. Throughout 2024, the Board has considered risk in terms of the wider landscape in which we operate, ensuring significant risks and threats are identified and monitored and are considered in the delivery of our mission and vision. Throughout 2024 the risk management framework has continued to support delivery of our mission and objectives; this has ensured readiness to take the right opportunities.

The Board delegates the arrangements for risk and the effectiveness of internal control systems to the Audit and Risk Management Committee (ARMC), with the day-today management of risk delegated to the chief executive officer which is discharged across the executive team and the extended leadership team. A head of risk and assurance facilitates and maintains the risk management process across the organisation, ensuring risks are effectively identified, reviewed and assessed.

The following table summarises the principal risks being proactively managed and mitigated across LifeArc.

----- Start of picture text -----
Nature
Risk explanation Management and mitigation of risk
of risk
----- End of picture text -----

Nature
of risk		 Risk explanation Management and mitigation of risk
Strategic
risk		 Long-term financial
sustainability and liquidity
If we fail to generate sufficient
long-term income or react
appropriately to changes in our
income and expenditure profile,
this may result in insufficient
liquidity to meet cash flow
requirements.		 •Annual long-term planning cycle and long-term
financial sustainability strategy agreed with Board,
including liquidity guardrails.
•Professional investment and Ventures teams with set
strategies, expected returns and robust governance
structures in place to take timely action.
•Conservative position taken regarding the inclusion
of uncertain income streams in forecasts.
•Monthly tracking of financial performance
commitments and reserves by the Finance
Committee.
•Investment and Ventures Committees’ oversight of
investment strategy and returns.
Strategic
risk		 Reputation and brand
If communications are not
effectively monitored and
controlled to have the desired
impact, it could lead to reputation
damage and loss of influence.		 •Clear communication of LifeArc's revised focus.
•Stakeholder engagement plan in place for relevant
stakeholders.
•Engagement with colleagues to support them with
clear messaging and materials to communicate our
strategic shift.
•Crisis communications plan that enables rapid and
effective response to reputational crisis.
•Clear approval process including executive level
approval for high profile communications.
•Media training for senior managers to ensure
appropriate actions.

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Annual report and accounts | 2024 | LifeArc

----- Start of picture text -----
Nature
Risk explanation Management and mitigation of risk
of risk
----- End of picture text -----

Nature
of risk		 Risk explanation Management and mitigation of risk
Strategic
risk		 Centre for Translation (CfT)
The significant project of selecting
and moving to a new building
risks time and budget overrun and
may disrupt mission delivery and
strategic objectives.		 •A range of external specialist commercial teams have
been deployed to help with building selection, design,
fit-out, and negotiations to achieve best value and
support long-term success.
•Early engagement, communication and socialisation
of CfT among employees and managers.
•Comprehensive and evidence-based business case
confirmed by the Board.
•Robust project governance and management controls
applied.
Strategic
risk		 Data governance
Greater use of data and data
science including AI may result in
failure to maintain data privacy or
prevent data leakage/misuse.		 •A ‘data privacy improvement plan’ has been applied
along with a policy on use of a segregated AI platform
across the organisation.
•Implementation of a ‘data council’ to steward
LifeArc's work on data issues.
•Independent external audits used to assess discipline
and new policies and to reinforce the control
framework.
Operational
risk		 IT, cyber security, and
resilience
The continually evolving IT and
cyber security landscape exposes
us to the risk of information/data
security breach or information/
data loss.		 •Robust data recovery systems are in place and
reviewed for resilience, alongside periodically
reviewed business continuity plans and independent
penetration testing.
•IT system users undertake mandatory cyber security
awareness training.
•Regular security testing with remediation actions
applied. Additionally, ISO:27001 and cyber essentials
plus accreditations are retained.
Operational
risk		 Compliance
As the organisation continues to
grow and transform at pace, there
is a need to ensure compliance
with regulations and legislation.		 •Appetite for legal and regulatory risk is reviewed and
set by the Board on an annual basis.
•Where there may be scope for non-compliance,
new checks and balances have been applied and
additional resource procured to improve systems and
automation.
•Culture is monitored via engagement surveys
•An overarching ‘policy framework’ has been reviewed
with improved training and awareness.

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Annual report and accounts | 2024 | LifeArc

Nature Risk explanation of risk Operational Funding, grants, and awards risk Increasing the volume and type of grants and funding we provide may increase the risks of ineffective governance, fraud, and error.

Management and mitigation of risk

Other risks identified and considered by the ARMC and Board included: protection of royalty rights, inflation, business continuity management, change and organisational bandwidth, health and safety, supply chain resilience, utilisation of our platform technologies, and management of our strategic partnerships. These continue to receive a strong focus from functional leads and the head of risk and assurance.

We integrate risk management with our approach to LifeArc’s insurance strategy, seeking to transfer risk where appropriate. Additionally, we integrate the work and operation of the internal audit function in providing assurance and actions in response to identified risk.

The trustees have considered the major risks to which the organisation is exposed and satisfied themselves that they are appropriately managed.

Emerging risks to the delivery of LifeArc’s objectives are periodically considered by the ARMC and Board. Some examples of the topics considered recently are: the geopolitical landscape; regulatory requirements in relation to clinical trials; and capital in venture markets.

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Annual report and accounts | 2024 | LifeArc

Financial review

Total income Total expenditure Net gains on investments and FX hedges Net movement in funds Funds balance carried forward

Income

Total incoming resources of £205.0 million (2023: £169.6 million) were made up of £184.3 million (2023: £143.1 million) income from charitable activities and £20.5 million (2023: £26.5 million) investment income. Income from charitable activities includes £182.6 million (2023: £141.3 million) of contract and royalty income, and £1.2 million (2023: £1.3 million) received for intellectual property management and technology transfer services.

LifeArc’s most significant charitable income came from pharmaceutical product royalties. This income is not connected to the current year’s expenditure and will fluctuate significantly from year to year.

Expenditure

Total resources expended during the year was £95.9 million , an increase of £22.4 million (31%) on 2023’s £73.5 million. Resources expended included costs related to scientific activities performed on site, grants awarded, overhead costs, investment activity, and other costs throughout the year that are not directly attributable to charitable activities.

2024 (£ million)

2023 (£ million)

2024 (£ million) 2023 (
205.0 169.6
(95.9) (73.5)
112.4 103.0
221.5 199.1
1,607.0 1,385.5

LifeArc Ventures investments during 2024

In addition to expenditure, LifeArc made investments into early-stage life science companies totalling £32.8 million (2023: £32.7 million). This includes both direct investments into private companies and indirect limited partnership fund investments.

Grants and funding

LifeArc provides funding through grants and other funding arrangements to partner organisations to support our mission to translate scientific discoveries into treatments and therapies. We award grants in line with our strategy and our charitable objectives. Approval for funding calls follows our scheme of delegation and the award of individual projects is typically vetted by an expert panel with input from our internal opportunity assessment group. We oversee the award process and the monitoring of projects through our partnerships team with support from our project management office. Grants awarded in the period are detailed on page 56.

Net gains on investment and FX hedges

Net gains for the year of £112.4 million was made up of net gains from the Investment portfolio of £116.1 million , offset by net losses on FX hedges £3.2 million , and a net reduction of £0.5 million from LifeArc Ventures direct and indirect investments as a limited partner. This is made up of net losses from the revaluation of multiple investments.

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Annual report and accounts | 2024 | LifeArc

Investment portfolio review

LifeArc manages its investments in line with its investment and ESG policies which set the framework for the assets and funds we invest in and our long-term return target of 3.5% plus UK average wage inflation.

The investment portfolio and policies are overseen and reviewed by the Investment Committee, with strategic changes requiring board approval.

2024 was another positive year for asset returns, as economic growth surprised on the upside and central banks eventually started to cut interest rates. The US S&P 500 Index posted another year of returns in excess of 20%, making it the first time since the late-1990s that it achieved back-to-back annual returns above 20%. Once again, these strong gains were led by, and further entrenched a narrow leadership within the index amongst the Magnificent 7 stocks, which were up 67%. Nvidia, Microsoft, Apple, Alphabet (Google), Amazon, Meta, and Tesla now account for over a third (33.5%) of the S&P 500. By contrast the S&P 500 Equal Weight Index was up 12% in the year.

Despite the generally upbeat performance, it was not all plain sailing in 2024. As inflationary pressures did not subside as much as expected, interest rate cuts took longer than many predicted, meaning that sovereign bonds struggled. Indeed, the 10-year Treasury yield rose for a 4th consecutive year, which is the first time that it has happened since the 1980s. Geopolitical matters also caused volatility.

In 2024, LifeArc’s long-term investment portfolio rose £122 million to close the year at a value of £1.255 billion, an increase of 10.7%. In relative terms, the portfolio performed reasonably well. Again, this is partly due to having the majority of the portfolio invested in public market equities, which was the strongest performing asset class. That said, it was another challenging year for active public equity fund managers, who in the main, struggled to keep up with the broader market and passive index funds. Of the five active global equity funds in the portfolio only one outperformed the market over the year, and that was the RBC Global Equity Fund. Nevertheless, the portfolio did benefit from a sizable weight to passive global equities with c.£400m in two Northern Trust funds. The allocation to passive equities versus active public equities in the portfolio was 46%:54%.

In terms of portfolio activity over the year, we continued to build exposure to global bonds from a low base, patiently and opportunistically adding to existing fund positions. In the hedge fund sleeve, which consists of 10 funds with varying styles and approaches, we increased our allocation to 6%. The overall risk/reward returns of the hedge fund sleeve surpassed our expectations over 2024. After a relatively quiet year in 2023 for commitment of capital into private markets, we made commitments to 12 funds, bringing a total of 33 to date. At the end of the year, we had 3.3% of the overall portfolio deployed by our funds across private equity, venture capital, infrastructure, private credit and real estate.

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Annual report and accounts | 2024 | LifeArc

Reserves policy

All of LifeArc’s reserves are held in pursuance of our charitable objectives.

Our policy, reviewed by the trustees annually, is to hold reserves which, along with anticipated future income, will enable the organisation to fund our operations and be sustainable in the long term to drive patient impact. The timescales associated with the translation of medical research are long term with the development of interventions such as therapeutics often taking more than 10 years, so it is critical that we are able to sustain ourselves in the long term to support projects to completion with our partners. Reserves are not restricted, are expendable and will be spent in the future in pursuit of our charitable objectives. LifeArc will not make commitments in excess of our liquid reserves and we are compliant with the position at 31 December 2024.

As well as the total balance sheet value of £1,606.9m, the Board considers 2 definitions when measuring reserves:

Financial sustainability

LifeArc considers impact and financial sustainability to be compatible and critically co-dependent elements of our strategy.

Our long-term financial plan is evaluated at least once a year by the Board and has 4 key elements: income generated through invested reserves managed by our investment office, returns from venture investments through our ventures team, revenue from operations (e.g. royalties and milestones) and expenditure.

The Board ensures that, given current reserves and certain assumptions about future investment returns and income, the organisation’s long-term plan is robust and positions LifeArc to maximise impact while maintaining financial sustainability.

A goal of the trustees’ financial planning is that we will have sufficient flexibility such that in periods of high financial stress we will avoid crystallising losses through the forced sale of assets by aiming for 50% of our investments across the balance sheet to remain in liquid assets. This is to ensure we are positioned to fulfil our commitments and obligations.

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Annual report and accounts | 2024 | LifeArc

Carbon report

We are committed to reducing our energy use and greenhouse gas emissions. Here we summarise LifeArc’s consumption and emissions for 2024, and how we are approaching our responsibility to reduce our environmental impact.

Reporting period

We are reporting on energy usage and emissions from 1 January to 31 December 2024

Methodology

We have followed the GHG Reporting Protocol – Corporate Standard for company reporting to identify and report relevant energy and greenhouse gas (GHG) emissions over which we have operational control. This includes owned assets where LifeArc is directly responsible for electricity and/or gas supplies across its three sites (Stevenage, London and Edinburgh). We have also considered the seven main GHGs covered by the Kyoto protocol, converting to tonnes of CO2 equivalents (CO2e).

Business travel in employee-owned vehicles relates to mileage expense claims from LifeArc staff during 2024.

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Annual report and accounts | 2024 | LifeArc

Greenhouse gas emissions and energy use from LifeArc’s activities during 2024 and previous year

----- Start of picture text -----
2023 2024 Vs (%)
----- End of picture text -----

2023 2024 Vs(%)
Energy consumption used to calculate
emissions (kWh)
Energy consumption breakdown (kWh):
•Gas (Scope 1)
•Electricity (Scope 2)
•Transport fuel* (Scope 3)		 2,084,863
0
2,054,807
30,056		 1,861,609
0
1,835,136
26,473		 -11%
-11%
-12%
Scope 1:
Direct emissions from owned or controlled sources
(such as fuel combustion or company vehicles) in
metric tonnes C02e
Total 0 0
Scope 2:
Indirect emissions from the generation of purchased
electricity, in metric tonnes C02e** (Location based)
Total 421 376 -11%
Scope 3:
Business travel in employee-owned vehicles,
in metric tonnes C02e**
Total 7 7 0%
Total gross emissions in metric tonnes C02e 428 383 -11%
Intensity ratio: Tonnes C02e per FTE
Intensity ratio: Purchased electricity tonnes C02e per
1000 sq m floor area		 1.5
0.1		 1.1
0.1		 -27%

**Using HMRC UK Government GHG Conversion factors for company reporting.

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Annual report and accounts | 2024 | LifeArc

Increasing our energy efficiency

In 2024, heating and cooling of our offices and laboratories continued to be the largest source of carbon emissions for our on-site activities. We have worked with our building managers to further understand our electricity consumption in more detail and have started exploring further efficiency gains concerning heating and cooling systems. Our electricity consumption in 2024 has decreased by 11%, bringing with it a decrease of 45 tonnes of carbon dioxide equivalents (tCO2e).

During 2024 a significant reduction in energy consumption was achieved at our Stevenage site by adjusting the heating, ventilation, and air conditioning (HVAC) system. Reductions were made during standard working hours and at the weekends. In addition, we have lowered the ambient temperatures in under-used areas of the building, including stairwells and the ground floor’s underfloor heating system.

Future priorities for sustainability

Looking ahead, LifeArc stays committed to expanding these initiatives, continuing to empower employees, and strengthening our sustainability framework. Through continuous action and collaboration, we are setting a standard for responsible operations in the life sciences sector while ensuring a positive and lasting impact on both people and the planet.

We will continue to develop our environmental, social and governance (ESG) roadmap to outline our commitments and plans for continued measurement improvement and progress towards our ESG aspirations.

In our laboratories, teams have taken steps to enhance energy efficiency through better management of cold storage and temperature control systems. Regular cleanouts of refrigerators prevent overloading, while ultra-low temperature freezers have been adjusted from -80°C to -70°C, reducing energy consumption without compromising sample integrity.

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Structure, governance management

Annual report and accounts | 2024 | LifeArc

Structure, governance and management

LifeArc is a company limited by guarantee and a registered charity, established in 2000. The organisation’s governing document is its Articles of Association which sets out its charitable objectives (see page 19).

Summary of governance structure

Responsibility for the day-to-day running of LifeArc is delegated by the Board to the executive management team. The team, under the leadership of the Chief Executive Officer (CEO), proposes to the Board where the organisation should invest its time, money and expertise. The executive management team also prepares recommendations for any strategic changes to the organisation’s activities prior to submission to the Board or committees of the Board. The team is also responsible for developing the financial and operational plans for board approval, and for monitoring financial performance.

The Board is responsible for setting strategy and ensuring that the necessary financial, human and physical assets to meet the organisation’s strategic aims are in place. The Board monitors organisational performance and oversees risk management, as well as planning for board and executive management succession, overseeing any changes to the articles of association and upholding our culture and values.

The Board delegates oversight and assurance for key business functions to five board committees: the Audit and Risk Management Committee, Investment

Committee, Nominations Committee, Remuneration Committee and the Board Financial Approvals Committee.

This year, strategic advisory boards were set up within each of the Translational Challenges, which will be critical to our success. Some truly outstanding individuals joined these boards as chairs and members, bringing extensive experience and insight and further raising LifeArc’s profile and credibility.

The past year has seen several changes to the executive management team. Following an extensive recruitment process, the Board is delighted to welcome Dr Sam Barrell, CBE, as CEO. Sam brings over 25 years of experience in the life science and healthcare sectors, and a wealth of knowledge of the activities in commercial and health spaces. Her leadership will drive the organisation forward and help accelerate the translation of research into innovations for people who need them.

The Board is also grateful to Stéphane Maikovsky, who served as Interim CEO from October 2023 alongside his role as Chief Financial Officer (CFO) and led LifeArc through a period of significant growth and achievement. Stéphane will continue to share his expertise and leadership with the organisation in his new capacity as Deputy CEO, in addition to his responsibilities as CFO.

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Structure of LifeArc’s board of trustees and board committees

Executive committees (with a focus on science, finance, health and safety and early ventures) are not included in this report.

----- Start of picture text -----
Reserved
Board of trustees (directors) matters for
(Meets quarterly) the board
Investment Audit and Risk Board Financial Nominations Remuneration
Committee Mgmt Committee Approvals Committee Committee Committee
(Meets quarterly) (Meets quarterly) (Meets as required) (Meets twice yearly) (Meets a minimum
Updates and decision Financial reporting. risk Allows decisions to be taken Delegates Appointments of NEDs of 3x annually)
on the investment and internal controls on investments outside day-to-day and senior execs Pay and performance
portfolio assurance board meetings decision for senior execs
making to
execs
Executive Committee (led by CEO)
(Meets monthly - formal meeting)
(Meets weekly - informal update)
----- End of picture text -----

Decision making

There is a clear organisational and control structure and scheme of delegation, which sets out those matters which are reserved for the Board, and those which are delegated to committees of the Board, or to the CEO or other executive(s). Matters reserved for the Board include changes to the strategy or budget, approval of significant projects and policies, decisions about property, and the organisation’s risk appetite. The Board approves the annual budget and strategic goals, and monitors financial performance and progress towards the strategic goals at each board meeting.

Charity Governance Code

LifeArc complies with the Charity Governance Code for Larger Charities (‘the Code’), which sets out 7 principles of good governance practice for charities in England and Wales, and the Charity Commission’s guidance. The General Counsel and Company Secretary monitors compliance with the Code and advises the Board on any action required.

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LifeArc executive management team

The executive management team is responsible for the day-to-day running of the charity under the authority of the Board.

Over the past 12 months, the team’s skills have been honed with the recruitment of new leaders who have the skills and experience needed to deliver LifeArc’s ambitions. As outlined above, Dr Sam Barrell, CBE, joined as CEO in October, and Stéphane Maikovsky stepped into the new position of Deputy CEO, alongside his responsibilities as CFO. Fiona Roberts joined the team as Chief People Officer in December, having previously held senior HR and people leadership positions across various sectors throughout her career. Jan Lasik joined as General Counsel & Company Secretary in summer 2025, facilitating ongoing good governance of the organisation. Claire Pimm also joined as Chief Communications Officer, following on from Jane Hughes as interim Chief Communications Officer, after Anna Tomlinson’s departure in November.

Jonathan Morgan joined the team in the new role of Chief Medical Officer in January 2025, to serve as LifeArc’s senior medical expert, shaping the clinical research agenda and ensuring the highest standards of medical and ethical integrity. Clare Terlouw has also stepped up to join the executive management team, having been Head of LifeArc Ventures since 2020, and continues to deliver the strategy for investments in the translation of life science innovation. This role is separate from that of the Chief Investment Officer, held by Graham Duce, who is responsible for investing the proceeds of monetisation to generate financial returns with which to fund further activities.

The Board is delighted to welcome the new leaders to the team, all of whom bring a wealth of experience to drive LifeArc forward, to meet its ambitious objectives and bring real impact to the people who need it most.

Dr Sam Barrell CBE

Chief Executive Officer (as of October 2024)

Stéphane Maikovsky Deputy Chief Executive Officer (CEO) Chief Financial Officer (CFO)

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Annual report and accounts | 2024 | LifeArc

Rachael Davidson

Interim General Counsel and Company Secretary (until June 2025)

Jan Lasik

General Counsel and Company Secretary (as of June 2025)

Dr Dave Powell

Chief Scientific Officer

Dr Jason Slingsby

Chief Business Officer (until April 2025)

Graham Duce

Chief Investment Officer

Dr Jonathan Morgan

Chief Medical Officer (as of January 2025)

Fiona Roberts

Chief People Officer (as of December 2024)

Clare Terlouw

Head of LifeArc Ventures

Jane Hughes

Interim Chief Communications Officer (December 2024 to June 2025)

Claire Pimm

Chief Communications Officer (as of June 2025)

Dr Karen Skinner

Chief Project and Portfolio Officer

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LifeArc Board of Trustees

The Board is composed of 11 trustees, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO), who are paid employees of LifeArc.

The trustees fulfil the legally defined roles of members and directors of the charitable company. They have broad and varied backgrounds, bringing not only the requisite governance experience, but also the diverse range of skills which the organisation requires, including biomedical science, investment fund management, finance, risk management, and law.

The independent trustees are not remunerated for their role at LifeArc. Trustees and members of the leadership team benefit from indemnity insurance as allowed by section 234 of the Companies Act 2006. Trustees are reimbursed for any direct expenses they incur in carrying out their duties.

The Board typically meets each year for 4 formal board meetings and one strategy day. Additionally, the Board meets as needed for shorter topic-specific meetings. During 2024, the Board met an additional 2 times as the full board and once as non-executive trustees to appoint the incoming chief executive officer.

Dr Ian Gilham

Chair of the Board Chair of the Nominations and Board Financial Approval Committees

Lynne Robb

Vice Chair of the Board Chair of the Audit and Risk Management Committee

Dr Sam Barrell CBE

Chief Executive Officer (as of October 2024)

Dr Terri Cooper

Member of the Investment Committee and the Nominations Committee

Stéphane Maikovsky

Deputy Chief Executive Officer (CEO) Chief Financial Officer (CFO)

Daniel Morgan

Member of the Audit and Risk Management Committee and the Board Financial Approvals Committee

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Annual report and accounts | 2024 | LifeArc

Dr Rima Makarem

Member of the Audit and Risk Management Committee (as of October 2024) Member of the Nominations Committee and the Remuneration Committee (until October 2024)

Dr Sameer Mistry

Member of the Nominations Committee and the Remuneration Committee (as of October 2024) Member of the Audit and Risk Management Committee and the Investment Committee (until October 2024)

Ian Nicholson

Chair of the Remuneration Committee

Member of the Investment Committee and the Board Financial Approvals Committee

Jo Pisani

Member of the Remuneration Committee

Susan Wallcraft

Member of the Audit and Risk Management Committee and Remuneration Committee

David Zahn

Chair of the Investment Committee

Dr Rima Makarem resigned from the Board and all Board committees in February 2025.

The Board thanks Rima for her time and commitment to the organisation during her period as a Trustee.

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Annual report and accounts | 2024 | LifeArc

Recruitment and election of LifeArc trustees

Non-executive trustees are recommended by the Nominations Committee and appointed by the Board through an open recruitment process. As recommended under the Charity Governance Code, trustees are appointed for a renewable term of 3 years and are eligible to stand for re-election for a maximum of 3 consecutive terms.

As outlined previously, Dr Sam Barrell, CBE, joined the Board in November 2024 in her position as Chief Executive Officer of LifeArc. She observed an initial board meeting in October 2024. While there were no changes to the non-executive trustees in 2024, Rima Makarem resigned from the Board in February 2025.

Induction and training of LifeArc trustees

Trustees meet regularly with members of the executive management team to discuss all areas of the business. New trustees receive a tailored induction to ensure that they understand our objectives and operations as well as their duties and statutory obligations. Trustees are given relevant Charity Commission guidance, and further training and development opportunities for the Board as a whole, or for individual trustees, are delivered as needed. Ahead of joining LifeArc, new CEO Dr Sam Barrell received an extensive 6-month induction, including regular briefings on Board matters from the Chair, the Interim CEO and other executive team members.

Trustees as members

As a company limited by guarantee, LifeArc is required by law to have members who act as nominal guarantors should the company ever be wound up. LifeArc has adopted the foundation model of governance which restricts membership to serving trustees only.

Board effectiveness

In October 2024, Trustees undertook a board effectiveness self-assessment, building on the external review conducted in 2023. Highly rated areas of the review included clarity of the Board’s role, the Board’s composition and skillset, and the operation and oversight of the investment portfolio and Board committees. The Board agreed actions to optimise other areas of performance, including allocating sufficient time for strategic discussion during meetings, continuing to use terms of references and processes to support decision making, and adjusting board agendas to support additional time to enable the Board’s continued professional development.

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Committees of the Board

A summary of the responsibilities of each committee can be found below. Membership of the committees as of December 2024 is shown on page 39. All trustees serve on one or more committees. Membership of each committee and its terms of reference are approved by the Board. Committees can co-opt external individuals to provide additional expertise. The committee Chair provides an update of the committee’s activities at the following board meeting, and all committee meeting agendas, papers and minutes are shared with the Board.

Audit and Risk Management Committee

The Audit and Risk Management Committee advises the Board on the adequacy and effectiveness of LifeArc’s arrangements for the financial reporting process, the integrity of LifeArc’s financial statements, the external and internal audit process, the system of internal controls and the identification and management of risks, and the organisation’s processes for monitoring compliance with legislative and regulatory requirements. It oversees the selection and appointment of the external auditor, setting their remuneration and maintaining oversight of their work.

Nominations Committee

The Nominations Committee reviews the structure, size and composition of the Board and recommends any changes to the membership of the Board and its committees. It is responsible for succession planning for trustees and the executive team, identifying and nominating new trustees to fill vacancies and making recommendations to the Board on the re-appointment of non-executive trustees. It reviews the membership of the Board committees and oversees LifeArc’s equity, diversity and inclusion approach.

Remuneration Committee

The Remuneration Committee determines and agrees LifeArc’s reward philosophy and associated strategy, and on an annual basis approves the budget and approach for reward in respect of pay awards and performance-related bonus awards. The committee uses benchmark data provided by Willis Towers Watson and sets remuneration levels for members of the executive management team with the aim of attracting, retaining and motivating senior leaders who can help deliver the organisation’s ambitious strategy and goals. Bonus payments are linked to performance as assessed by the CEO for the executive team and the chair in the case of the CEO. All bonus payments for the executive team are approved by the committee, as well as reviewing the organisation’s overall recommendations for the general employee pool.

Investment Committee

The Investment Committee provides appropriate and effective oversight of LifeArc’s investment portfolio. Working within the Investment Policy, which is approved by the Board, the committee is responsible for determining asset allocation, approval of fund managers, hedging arrangements, appointment of investment consultants, custodian and other consultants and their terms of engagement and overseeing the application of the Environmental, Social and Governance Policy.

Board Financial Approvals Committee

The Board Financial Approvals Committee supports effective governance of investment decisions which are outside of the remit of the Early Ventures Investments Committee and the Investment Committee, to ensure that life sciences investments further LifeArc’s strategy, and social investments meet LifeArc’s stated charitable purpose. It provides access to the Board to facilitate swift decision-making outside of the programme of scheduled meetings and without the need to call a board meeting at short notice.

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Composition of the Board and committees, as of 31 December 2024

Below shows the composition of the Board, their membership to each board committee and the number of meetings they attended in 2024.

Trustee
Number of
attendances		 Date of
appointment		 End
date		 Committees
Number of times meeting in 2024		 Committees
Number of times meeting in 2024		 Committees
Number of times meeting in 2024		 Committees
Number of times meeting in 2024		 Committees
Number of times meeting in 2024		 Committees
Number of times meeting in 2024		 Committees
Number of times meeting in 2024		 Committees
Number of times meeting in 2024
Board Audit
and risk
management		 Investment Nominations Remuneration Board
financial
approvals
8 5 4 2 4 0
Dr Ian Gilham
Chair		 Oct 2021
Lynne Robb
Vice Chair		 Jun 2020
Dr Sam Barrell
CBE, CEO of LifeArc		 Nov 2024
Stéphane Maikovsky
Deputy CEO and
CFO of LifeArc		 Jun 2022
Dr Terri Cooper Jun 2023
Dr Rima Makarem Jun 2023 Feb 2025
Dr Sameer Mistry Jun 2023
Daniel Morgan Nov 2017
Ian Nicholson Oct 2021
Jo Pisani Dec 2020
Susan Wallcraft Oct 2021
David Zahn Aug 2019

Key Chair Attended

Not attended Not applicable

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Annual report and accounts | 2024 | LifeArc

Conflicts of interest

LifeArc’s policy on conflicts of interest applies to the Board and employees alike. A register of trustees’ interests is reviewed at each board meeting and all employees complete a conflicts disclosure form annually. Randomised checks are conducted to support our compliance processes. Completed forms are reviewed by the Company Secretary to identify and manage any actual or potential conflict.

The Audit Committee reviews the Policy related to gifts, hospitality and interests and the registers are available as required to meet any regulatory review.

Statement of board responsibilities

The Board of Trustees are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom accounting standards (United Kingdom Generally Accepted Practice). Company law requires the Board to prepare financial statements for each financial year which give a true and fair view of the state of affairs of LifeArc at the balance sheet date and of its incoming resources and application of those resources, including its income and expenditure for the financial year.

In preparing these financial statements, the Board is required to:

The Board is responsible for maintaining proper accounting records that are sufficient to show and to explain LifeArc’s transactions and to disclose, with reasonable accuracy, at any time, the financial position of LifeArc and to ensure that the financial statements comply with the Companies Act 2006.

LifeArc’s financial statements are published on its website in accordance with legislation in the United Kingdom, governing the preparation and dissemination of financial statements. The maintenance and integrity of LifeArc’s website is the responsibility of the Board and this responsibility extends to the ongoing integrity of the financial statements published on the website.

The Board is also responsible for safeguarding the assets of LifeArc and for taking reasonable steps for the prevention and detection of fraud or other irregularities.

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Annual report and accounts | 2024 | LifeArc

Preparation of financial statements

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements, and comply with LifeArc’s Articles of Association, applicable law, the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ and Financial Reporting Standard FRS 102.

Disclosure of information to auditors

The trustees who held office at the date of approval of this trustees’ report confirm that, so far as each of them is aware:

Auditor

Moore Kingston Smith LLP was appointed as an independent external auditor in September 2024. The Audit Risk and Management Committee reviewed the proposed delivery of the audit and noted that the auditors meet the requirements to exercise suitable objectivity in relation to the carrying out the audit.

Approval

The Trustees’ Report incorporating the Strategic Report was approved by the Board of trustees of LifeArc on:

Date: 0 2 0 7 2 5 Signature:

Signed on its behalf by: Dr Ian Gilham, Chair

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2024 accounts

Annual report and accounts | 2024 | LifeArc

Independent auditor’s report to the trustees and members of LifeArc

We have audited the financial statements of LifeArc (the ‘charitable company’) for the year ended 31 December 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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Annual report and accounts | 2024 | LifeArc

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained in the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 or the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

• adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us

Responsibilities of trustees

As explained more fully in the Statement of board responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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Annual report and accounts | 2024 | LifeArc

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under Section 44(1) (c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report to you in accordance with regulations made under those Acts.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK), will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

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Annual report and accounts | 2024 | LifeArc

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company’s trustees, as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charitable company's members and trustees those matters which we are required to state to them in an auditor's report addressed to them and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company's members as a body, and the charity’s trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Luke Holt (Senior Statutory Auditor)

For and on behalf of Moore Kingston Smith LLP, Statutory Auditor, 9 Appold Street, London, EC2A 2AP

Date: 25 July 2025

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

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Annual report and accounts | 2024 | LifeArc

Financial statements

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2024

Notes Unrestricted
funds £000s		 Restricted
£000s		 Total funds
2024 £000s		 Total funds
2023 £000s
Income and endowments from
Charitable activities 1 183,842 422 184,264 143,054
Investments 2 20,479 – 20,479 26,459
Other income 3 300 – 300 66
Total income and endowments – 204,621 422 205,043 169,579
Expenditure on
Raising funds 4 2,210 – 2,210 1,943
Charitable activities 5 93,223 422 93,645 71,496
Provisions 19 79 – 79 50
Total expenditure – 95,512 422 95,934 73,489
Net gains on investments 14/15 115,560 – 115,560 87,187
Net gains on FX hedges – (3,187) – (3,187) 15,842
Net income – 221,482 – 221,482 199,119
Net movement in funds 21 221,482 – 221,482 199,119
Reconciliation of funds:
Total funds brought forward 21 1,385,478 – 1,385,478 1,186,359
Total funds carried forward 21 1,606,960 – 1,606,960 1,385,478

All income and expenditure derives from continuing activities.

The statement of financial activities includes all gains and losses recognised during the year. Full comparative figures are presented in note 31.

The accounting policies and notes on pages 50 to 71 form part of the financial statements.

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Balance sheet

For the year ended 31 December 2024

Company number: 2698321

Balance sheet
For the year ended 31 December 2024
Company number: 2698321
Notes 2024
£000s		 2023
£000s
Fixed assets
Tangible fixed assets 12 7,867 10,174
Intangible assets 13 7,147 8,980
Investments 14 1,354,155 1,196,056
1,369,169 1,215,210
Current assets
Investments 15 179,662 68,010
Debtors 16 78,126 117,356
Cash - 8,462 6,815
Total current assets 266,250 192,181
Creditors: amounts falling (due within one year) 17 (27,584) (21,117)
Net current assets - 238,666 171,064
Total assets (less current liabilities) - 1,607,835 1,386,274
Provision for liabilities 19 (875) (796)
Net assets - 1,606,960 1,385,478
Charity funds
Unrestricted funds 21 1,606,960 1,385,478
Total charity funds 1,606,960 1,385,478

The accounting policies and notes on pages 50 to 71 form part of the financial statements. The financial statements were approved and authorised for issue by the Board on 2 July 2025. Signed on behalf of the LifeArc Board of Trustees.

Dr Ian Gilham - Chairman

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Statement of cash flows

For the year ended 31 December 2024

Notes 2024
£000s		 2023
£000s
Cash flow from operating activities 23 141,456 (13,564)
Cash flow from investing activities
Payments to acquire tangible fixed assets - (838) (4,449)
Payments to acquire intangible assets - - 5
Payments to acquire investments - (261,794) (293,484)
Receipts from sale of investments - 217,263 208,140
Dividends, interest and rents received from investments - 20,479 26,459
(Increase) / decrease in current asset investments - (111,652) 42,004
(Increase) / decrease in cash held for investment - (167) 28,230
Reclassification from current asset investment to fixed asset investment - (3,100) -
Net cash flow provided by investing activities - (139,809) 6,907
Change in cash and cash equivalents in the year - 1,647 (6,657)
Cash and cash equivalents at 1 January - 6,815 13,472
Cash and cash equivalents at 31 December 8,462 6,815
Cash and cash equivalents consist of:
Cash at bank and in hand - 8,462 6,815
Short-term deposits - - -
Cash and cash equivalents at 31 December 8,462 6,815

The accounting policies and notes on pages 50 to 71 form part of the financial statements.

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Accounting policies

For the year ended 31 December 2024

General information and basis of preparation

LifeArc is a charitable company limited by guarantee in the United Kingdom. In the event of the organisation being wound up, the liability in respect of the guarantee is limited to £1 per member of the organisation.

The address of the registered office is given on the back cover of these financial statements. The nature of LifeArc’s operations and principal activities are enabling science to create health breakthroughs – including drugs, diagnostics and devices – for people with underserved conditions, working with partners from industry, academia, charities and patient organisations. We do this by funding innovative research and investing in sciencebased companies, providing scientific support and offering translational advice.

LifeArc constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the financial reporting standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK generally accepted practice as it applies from 1 January 2019.

The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are prepared in sterling, which is the functional currency of the organisation, and rounded to the nearest £000.

The subsidiary undertaking LifeArc Innovations Limited has been excluded from consolidation on the basis of it not being material, in line with FRS 102 paragraph 9.9A. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated.

Going concern

The Board considers that the use of the going concern basis is appropriate because there are no material uncertainties relating to events or conditions that may cast significant doubt about LifeArc’s ability to continue as a going concern, and there is reasonable expectation that the organisation has adequate reserves to continue in operational existence for the foreseeable future, and at least 12 months from the date of approval of these accounts

Incoming resources

Income is recognised when LifeArc is entitled to the income, the value can be reasonably measured and it is probable that the income will be received. Incoming resources from charitable activities comprise the following:

Incoming resources from investments comprise the following:

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Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources:

Support cost allocation

Support costs are those that assist the work of LifeArc but do not directly represent charitable activities and constitute corporate resource and governance costs. They are incurred directly in support of expenditure on the activities of the organisation and have been allocated to activities on an employee headcount basis.

Accounting for tangible fixed assets

Fixed assets or groups of fixed assets with a cost in excess of £5,000 are capitalised at cost and depreciated according to the disclosed policy.

Fund accounting

The unrestricted fund is a general unrestricted fund which is available for use at the discretion of the Board in furtherance of the general objectives of LifeArc and which has not been designated for other purposes.

The restricted funds represent grants received in the year which are subject to specific restrictions imposed by the donor.

Depreciation for tangible fixed assets

Depreciation is provided on a straight-line basis so as to write off the cost or valuation of tangible fixed assets less estimated residual value over their estimated useful economic lives, which are as follows:

Plant and machinery 10 years
Laboratory equipment 5 to 10 years
Furniture, fixtures and fittings and office equipment 5 years
Computers 3 to 5 years
Leasehold improvements Over the period of the lease or useful economic life,
whichever is the shorter
IT infrastructure 10 years

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Accounting for intangible fixed assets

Intangible assets are capitalised at cost and amortised according to the policy below.

Amortisation for intangible fixed assets

Amortisation is provided on a reducing-balance basis or straight-line basis with the most appropriate basis for each asset chosen so as to write off the cost of intangible fixed assets less estimated residual value over their estimated useful economic lives, which are as follows:

Where these assets are private holdings, fair value requires significant judgement. Increases in valuation require robust evidence such as a funding round with an upwards valuation involving new investors. Impairment assessments are conducted at each reporting date, and any disposal gains or losses are recognized in the SOFA. The carrying value of associates in our venture portfolio is £10.01 million.

Impairment reviews

A review of the impairment of fixed asset investments is carried out if events or changes in circumstances indicate that the carrying amount will not be recoverable.

Fixed asset investments

Investments are recorded at cost and are stated at fair value at the balance sheet date. The unrealised gains and losses arising as a result are included in the Statement of Financial Activities (SOFA) together with any realised gains and losses on any investments disposed of in the year.

Financial assets, including investments in equity instruments which are not subsidiaries, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried, where possible, at fair value and the changes in value are recognised in the SOFA. Assets are considered for indications of impairment, with any impairment then recognised in the SOFA.

Associates accounting

Where we have a shareholding greater than 20%, but less than 50%, these companies are considered associates. All of our associate companies are part of the venture portfolio and are held within a basket of investments. Investments in associates within our venture portfolio are initially recognised at cost and subsequently measured at fair value, with changes in fair value recognised in the SOFA.

Current asset investments

Investments are stated at market value at the balance sheet date. The unrealised gains and losses arising as a result are included in the SOFA together with any realised gains and losses on any disposals in the year.

Operating leases

Rentals paid under operating leases are charged to the SOFA on a straight-line basis over the terms of the lease. Where there is a rent-free period the total cost of the lease is recognised over the term on a straight-line basis.

Foreign currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rate of exchange ruling at the balance sheet date.

Transactions which have been concluded prior to the balance sheet date are translated into sterling at the monthly rate of exchange ruling at the date of the transaction. Exchange gains and losses arising in the normal course of operations are included in the SOFA.

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Financial instruments and hedging activities

LifeArc uses forward foreign currency contracts to manage its exposure to fluctuations in foreign exchange rates. These instruments are initially recognised at fair value on the trade date and are subsequently remeasured at their fair value at the end of the reporting date.

All hedging instruments will be recognised on the balance sheet at fair value, and all changes in value of the hedging instrument will be recognised in the SOFA.

Employee benefits

When employees have rendered service to the organisation, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

Pension costs

LifeArc operates a defined contribution pension scheme which is open to all employees. The funds of the scheme are administered by a third party and are separate from LifeArc. The pension charge represents contributions payable by LifeArc for the year. LifeArc’s liability is limited to the amount of the contributions.

Termination benefits

Redundancy and termination costs are recognised when there is a legal or constructive obligation which can be measured reliably, and it is probable that a payment will be made.

Taxation

LifeArc is a registered charity and is generally exempt from corporation tax but not from value added tax (VAT). Irrecoverable VAT is included with the cost of those items to which it relates.

Provisions

A provision is made for a liability in the financial statements where LifeArc has a present obligation as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the liability and a reliable estimate can be made of the obligation.

Grant accounting

Grants are awarded with substantive review conditions and expenditure is recognised in the SOFA as those conditions are met. A grant commitment will be recorded in note 20 when a constructive obligation exists to make a grant split between those payable within one year and beyond one year. Grant commitments that are estimated as payable after more than one year are not discounted.

Cash and cash equivalents policy

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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01. Income from charitable activities

01. Income from charitable activities
2024
(£000s)		 2023
(£000s)
Research contracts and royalty income 182,647 141,321
IP management and technology transfer services 1,195 1,255
Grants 422 478
Total 184,264 143,054

LifeArc made the strategic decision not to submit a tender proposal to extend our contract with the MRC in 2025 for IP management and technology transfer services.

02. Income from investments

2024
(£000s)		 2023
(£000s)
Dividends – equities 6,811 7,250
Interest – fixed interest securities 1,710 2,053
Interest – deposits 249 311
Income from alternative investments 11,709 16,845
Total 20,479 26,459

03. Other income

2024
£000s		 2023
£000s
Miscellaneous 300 66
Total 300 66

04. Raising funds

04. Raising funds
2024
£000s		 2023
£000s
Investment office costs 752 634
Investment manager and consultancy fees 1,458 1,309
Total 2,210 1,943

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05. Analysis of expenditure on charitable activities

2024 2024 2024 2023
Activities
undertaken
directly £000s		 Grant funding
of activities
£000s		 Support
costs
£000s		 Total
£000s		 Total
£000s
Respiratory health 3,388 2,849 4,010 10,247 6,650
Neurodegeneration healthcare 3,569 5,375 5,763 14,707 6,965
Global health infection 3,143 5,019 5,238 13,400 9,956
Rare disease 423 9,143 6,160 15,726 9,306
Childhood cancer 1,551 1,064 1,649 4,264 856
Cross Translational Challenges 627 - 238 865 582
LifeArc Ventures 2,573 - 1,696 4,269 3,587
Scientific platforms and other
partnerships		 13,831 5,094 10,994 29,919 26,545
Other 75 29 144 248 7,049
Total 29,180 28,573 35,892 93,645 71,496

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Grants

Grants
Institution 2024 £000s 2023 £000s
Our Future Health 4,984 -
UK DRI Ltd 3,869 412
(UCL) University College London 2,480 1,578
Francis Crick Institute 2,062 725
Medical Research Council 1,593 2,219
University of Edinburgh 1,590 483
Medicines Discovery Catapult Ltd 807 -
University of Texas Southwestern Medical Center 754 -
University of Glasgow 722 465
CureSearch for Children’s Cancer 661 -
University of Cape Town 601 -
Action Medical Research 596 421
University of Cambridge 588 308
Great Ormond Street Hospital 572 338
University of Dundee 285 285
Kings College London 528 455
University of Newcastle 491 63
University of Liverpool 475 -
Action on Antibiotic Resistance Africa 456 -
Ockham Biotech Limited 431 -
Yemaachi Biotech Limited 403 -
BioVersys AG 399 -
University of Birmingham 332 85
University of Sheffield 297 452
University of Oxford 250 361
Bicycle Tx Limited 203 -
Department of Health and Social Care 190 760
Drugs and Diagnostics for Tropical Diseases 182 20
Oxford Drug Design 169 -
University of Manchester 163 -
Translab Private Limited 136 -
ALS Therapy Development Institute 117 -
Cambridge Science Centre 110 100

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Institution (cont.) 2024 £000s 2023 £000s
University of Oxford DTC 107 -
Imperial College London 102 -
University of Buea 91 82
Beacon for Rare Diseases Limited 85 -
Indian Institute of Technology Roorkee 84 -
Monash University 82 -
Antabio 80 -
NESTA 80 -
Rostra Therapeutics 76 -
Foundation for Innovative New Diagnostics 63 -
AUTM Foundation 55 57
Royal Holloway University of London 53 43
Aarhus University 46
Cystic Fibrosis Trust 42 -
Queen Mary University of London 38 220
TRH Consulting 37 -
Liverpool School of Tropical Medicine 34 100
The Institute of Cancer Research Royal Cancer Hospital 23 23
University of Oxford Pandemic Sciences Institute 8 -
University of Ghana* (108) 503
Gene People - 30
University of H3D Foundation - 98
University of Chile - 100
Chelsea and Westminster Hospital NHS - 137
University of Sussex - 149
University of AIBST: Pan Africa DMPK Center of Excellence - 166
University of Aberdeen - 214
DEBRA Austria - 250
University of Stellenbosch - 444
KQ Labs - 876
Total 28,573 13,023

*Over accrual £108k in 2023, reversed in 2024.

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06. Allocation of support costs

Governance
£000s		 Corporate
resources £000s		 2024
£000s		 2023
£000s
Respiratory health 154 3,856 4,010 2,569
Neurodegeneration healthcare 222 5,541 5,763 2,705
Global health infection 201 5,037 5,238 3,860
Rare disease 236 5,924 6,160 3,436
Childhood cancer 63 1,586 1,649 309
Cross Translational Challenges 9 229 238 225
LifeArc Ventures 66 1,630 1,696 1,397
Scientific platforms and other
partnerships		 405 10,589 10,994 10,136
Other 2 142 144 2,858
Total 1,358 34,534 35,892 27,495

Governance costs are detailed further in note 7.

07. Governance costs

07. Governance costs
2024
£000s		 2023
£000s
Staff costs 739 517
Direct costs
Other legal and professional charges 32 178
Audit fees 43 40
Other fees 193 181
Bank charges 8 8
Insurance 239 210
Other governance costs 104 143
Total 1,358 1,277

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08. Net income for the year

08. Net income for the year
Net income is stated after charging/(crediting): 2024
£000s		 2023
£000s
Depreciation of tangible fixed assets 3,105 3,018
Amortisation of intangible fixed assets 1,833 2,263
Operating leases – property 1,483 1,367
Auditor’s remuneration 43 40
Fees payable to internal auditor 193 181
Net (gains)/losses on foreign exchange (149) 262

09. Auditor’s remuneration

09. Auditor’s remuneration
2024
£000s		 2023
£000s
Fees payable to the charity’s auditor for the audit of the
charity’s annual accounts		 43 40
Fees payable to the charity’s auditor for other services:
Other services - 9
Total 43 49

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10. Board and key management personnel remuneration and expenses

Remuneration and benefits were paid to Sam Barrell (CEO) and Stéphane Maikovsky (CFO and Deputy CEO, formerly interim CEO) for their roles as employees of the organisation, not for their positions as trustees.

Stéphane Maikovsky was appointed as a trustee of LifeArc on 17 June 2022. Remuneration and benefits were due for his role as an employee of the organisation, not for his position as trustee. The aggregate amounts paid during the year to Stéphane Maikovsky includes basic pay £296,725 (2023 – £245,875), 5% flex allowance of £14,836 (2023 – £12,294), bonus of £136,296 (2023 – £124,810), pension contributions £35,607 (2023 – £29,505), and other benefits £6,269 (2023 – £5,030). This includes basic pay of £38,556 (2023 £12,437), 5% flex allowance of £1,928 (2023 £622), and pension contributions of £4,627 (2023 £1,492) in respect of acting up as the CEO of LifeArc from 1 October 2023 to 30 September 2024. Bonus was awarded in relation to his role as both CFO and interim CEO during the year.

Sam Barrell was appointed as a trustee of LifeArc on 28 November 2024. Remuneration and benefits were due for her role as an employee of the organisation, not for her position as trustee. The aggregate amounts paid during the year to Sam Barrell includes basic pay £34,185, 5% flex allowance of £1,709, bonus of £18,580, pension contributions £3,418, and other benefits £451.

In respect of services provided to LifeArc for the LifeArc Ventures Fund, Ian Nicholson invoiced LifeArc £9,000 (2023 £6,500) for consultancy through Casewell Consulting Limited.

All other trustees neither received nor waived any remuneration during the year (2023 – £nil).

The total amount of employee benefits received by key management personnel during the year (made up of basic pay, bonus, pension allowance, employer’s pension contribution, employer’s NI, PILON, severance payments and other benefits) was £3,873,000 (2023 – £3,517,000). The Board considers its key management personnel to comprise the Chief Executive Officer and executive management team.

The following expenses were reimbursed or paid directly on trustees’ behalf during the year for their services as trustees:


services as trustees:
2024 number
of trustees		 2023 number
of trustees		 2024
£000s		 2023
£000s
Travel and subsistence 8 11 11 13
Total 8 11 11 13

Included above is £6,453 (2023 – £7,961) which has been paid directly to third parties.

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11. Staff costs and employee benefits

The average number of employees, analysed by function, was:

The average number of employees, analysed by function, was:
2024 2023
Executive 9 8
Translational science and Translational Challenge leadership 173 144
Partnerships 42 37
LifeArc Ventures 8 6
Enabling functions* 94 77
Investment office 3 3
Agency/contract staff 16 15
Total 345 290

*Enabling functions includes Corporate Affairs, Finance, Facilities, Human Resources, IT, Legal and Project Management.

The total staff costs and employee benefits were as follows:

2024
£000s		 2023
£000s
Wages and salaries 28,136 22,291
Social security 3,209 2,560
Defined contribution pension costs 2,219 1,682
Agency/contract staff 1,986 2,174
Redundancy payments 362 398
Total 35,912 29,105

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The number of employees who received total employee benefits (made up of basic pay, flex allowance, bonus, and other allowances) of more than £60,000 is as follows:

2024 2023
£60,001 – £70,000 39 29
£70,001 – £80,000 20 26
£80,001 – £90,000 23 15
£90,001 – £100,000 17 18
£100,001 – £110,000 18 11
£110,001 – £120,000 20 10
£120,001 – £130,000 6 1
£130,001 – £140,000 5 3
£140,001 – £150,000 6 1
£150,001 – £160,000 - 3
£160,001 – £170,000 5 3
£170,001 – £180,000 1 -
£180,001 – £190,000 2 1
£190,001 – £200,000 2 -
£200,001 – £210,000 3 1
£210,001 – £220,000 2 -
£220,001 - £230,000 1 4
£230,001 - £240,000 - 1
£240,001 – £250,000 1 2
£250,001 – £260,000 - 1
£260,001 – £270,000 1 -
£270,001 – £280,000 3 -
£280,001 – £290,000 - 1
£310,001 -- £320,000 1 -
£320,001 – £330,000 - 1
£340,001 – £350,000 1 -
£350,001 – £360,000 - 1
£370,001 – £380,000 1 -
£380,001 – £390,000 1 1
£440,001 – £450,000 1 -
£480,001 – £490,000 - 1
Total 180 135

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PILON totalling £151,600 (2023 – £282,275) was included in calculating the number of employees who received total employee benefits of more than £60,000.

The pension contributions to the defined contribution scheme payable on behalf of 180 (December 2023 – 135) members of staff amounted to £1,645,576 (2023 – £1,142,691).

The redundancy and termination payments in the year totalled £362,122 (2023 – £398,382) from 17 employees (2023 – 8 employees), of which £262,622 (2023 – £335,382) had been paid during the year with £99,500 (2023 - £63,000) accrued at the year end.

12. Tangible fixed assets

Assets under
construction
£000s		 Leasehold
improvements
£000s		 Laboratory
equipment
and plant
£000s		 Fixtures,
fittings and
computers
£000s
Cost
At 1 January 2024 751 9,910 14,428 4,213
Additions 279 130 212 217
Disposals - - (1,081) (1,247)
Reclassification (823) - 681 142
At 31 December 2024 207 10,040 14,240 3,325
Accumulated depreciation
At 1 January 2024 - 6,277 9,628 3,223
Charge for year - 928 1,702 475
Disposals - - (1,041) (1,247)
At 31 December 2024 - 7,205 10,289 2,451
Net book value
At 31 December 2024 207 2,835 3,951 874
At 31 December 2023 751 3,633 4,800 990

LifeArc had capital commitments of £nil at 31 December 2024 (December 2023 – £nil).

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13. Intangible assets

13. Intangible assets
Synergy antibody
platform
£000s		 Software and
licences
£000s
Cost
At 1 January 2024 16,149 561
Additions - -
At 31 December 2024 16,149 561
Accumulated amortisation
At 1 January 2024
Charge for year
At 31 December 2024		 7,546
1,721
9,267		 184
112
296
Net book value
At 31 December 2024 6,882 265
Note 2024
£000s		 2023
£000s
Investments at cost 27 38
Unlisted investments in LifeArc Ventures Fund held at fair value 14a 94,935 64,471
Listed investments 14b 1,033,736 978,645
Alternative investment incl. private equity 14b 221,804 149,416
Cash held for investment purposes 3,653 3,486
Total 1,354,155 1,196,056

Included within investments at cost is £10,000 in relation to 100% of the shares in LifeArc Innovations Limited.

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14a. Unlisted investments held at fair value

14a. Unlisted investments held at fair value
LifeArc Ventures and LifeArc as a limited partner 2024
£000s		 2023
£000s
Fair value at 1 January 64,471 44,675
Investments in the year 32,969 32,721
Disposals in the year (4,023) (1,012)
Realised (losses) / gain during the year (850) 100
Unrealised gain during the year 969 12,271
Interest accrued 1,625 298
Foreign exchange loss (226) (40)
Fair value at 31 December 94,935 64,471

At the year-end, LifeArc was committed to investing £71.7 million (2023 £72.7 million) through LifeArc Ventures and as a limited partner, and £104.8 million (2023 £76.8 million) from other unrestricted funds.

14b. Listed investments held at fair value

14b. Listed investments held at fair value
2024
£000s		 2023
£000s
Market value at 1 January 1,128,061 977,243
Acquisitions 228,825 260,733
Sale proceeds (213,240) (207,084)
Unrealised gain 127,082 94,832
Realised (loss) / gain (17,885) 2,215
Reclassification 3,100 -
Foreign exchange (loss) / gain (403) 122
Market value at 31 December 1,255,540 1,128,061
Historical cost at 31 December 1,089,542 1,090,212

Portfolio analysis

Portfolio analysis
2024
£000s		 2023
£000s
Equities within the UK 74,477 113,225
overseas 802,438 700,129
Fixed interest securities within the UK 22,528 -
overseas 134,293 165,291
Alternative investment incl. private equity 221,804 149,416
1,255,540 1,128,061
Cash 3,653 3,486
Total 1,259,193 1,131,547

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15. Current asset investments

15. Current asset investments
2024
£000s		 2023
£000s
At 1 January 68,010 110,016
Net (withdrawals) (332) (3,209)
Acquisitions 220,048 84,421
Sale proceeds (111,200) (125,358)
Realised gains 2,316 3,656
Unrealised gains / (losses) 3,900 (1,346)
Reclassification to fixed asset investments (3,100) -
Interest received 18 24
Foreign exchange gain /(loss) - (194)
As at 31 December 179,662 68,010
Historical cost at 31 December 174,675 71,466

Portfolio analysis

Portfolio analysis
2024
£000s		 2023
£000s
Equities overseas - 3,100
Fixed interest securities overseas 179,655 64,590
Total 179,655 67,690
Cash 7 320
Total 179,662 68,010

The fair value of listed investments is determined by reference to the quoted price for identical assets in an active market at the balance sheet date.

16. Debtors

16. Debtors
2024
£000s		 2023
£000s
Trade debtors 830 41
Prepayments and accrued income 76,524 103,176
Tax debtor – VAT 508 976
Other debtors 264 115
Hedge / derivative asset - 13,048
Total 78,126 117,356

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17. Creditors: amounts falling due within one year

17. Creditors: amounts falling due within one year
2024
£000s		 2023
£000s
Trade creditors 738 3,174
Grant creditors 1,059 1,238
Accruals and deferred income 11,779 12,185
Other creditors 2,780 3,558
Hedge / derivative liability 9,973 -
PAYE and NI creditor 1,255 962
Total 27,584 21,117

Deferred income £88k (2023 - £88k) relates to income received in advance, relating to the following year. The full amount was deferred in the current year, with the full amount brought forward being released in the year.

18. Leases

18. Leases
Operating lease – leasee 2024
£000s		 2023
£000s
Total future minimum lease payments under non-cancellable operating leases
are as follows:
Not later than 1 year 1,465 1,441
Later than 1 and not later than 5 year 630 2,068
Later than 5 years - -
Total 2,095 3,509

19. Provisions for liabilities and charges

19. Provisions for liabilities and charges
Provision for dilapidations
£000s
At 31 December 2023 796
Additions during the year 79
Amounts charges against the provision -
Unused amounts reversed -
At 31 December 2024 875

The provision relates to dilapidations for the Edinburgh site, the Lynton House site, and the Stevenage site.

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20. Grant commitments

20. Grant commitments
Expected to be paid
within 1 year £000		 Expected to be paid
after 1 year £000		 Total
£000s
Rare diseases and Philanthropic Fund 18,669 33,326 51,995
Neurodegeneration healthcare 6,636 20,413 27,049
Global health 12,730 46,334 59,064
Respiratory health 8,155 11,420 19,575
Childhood cancer 242 13,258 13,500
Our Future Health 2,500 2,500 5,000
Total 48,932 127,251 176,183

21. Fund reconciliation

Balance at
1 Jan 2024
£000s		 Income
£000s		 Expenditure
£000s		 Transfers
£000s		 Gains
£000s		 Balance
31 Dec 2024
£000s
Unrestricted 1,385,478 204,621 (95,512) - 112,373 1,606,960
Restricted - 422 (422) - - -
Total 1,385,478 205,043 (95,934) - 112,373 1,606,960

Fund descriptions

01. Unrestricted funds

The unrestricted fund is a general unrestricted fund which is available for use at the discretion of the Board in furtherance of the general objectives of LifeArc and which has not been designated for other purposes.

02. Restricted funds

The restricted funds are grants received in the year which are subject to specific restrictions imposed by the donor. Grant income includes £422,000 (December 2023 – £478,000) from GSK Services and the Royal Commission for the Exhibition of 1851.

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22. Analysis of net assets between funds

Unrestricted
funds £000s		 Total 2024
£000s
Fixed assets 1,369,169 1,369,169
Cash and current investments 188,124 188,124
Other current assets/liabilities 50,542 50,542
Provisions (875) (875)
Total 1,606,960 1,606,960
Unrestricted
funds £000s		 Total 2023
£000s
Fixed assets 1,215,210 1,215,210
Cash and current investments 74,825 74,825
Other current assets/liabilities 96,239 96,239
Provisions (796) (796)
Total 1,385,478 1,385,478

23. Reconciliation of net income to net cash flow from operating activities

2024
£000s		 2023
£000s
Net income for year 221,482 199,119
Dividends, interest and rents from investments (20,479) (26,459)
Accrued income on LifeArc Ventures investments (1,625) (298)
Revaluation loss/(gain) on investments 629 (81)
Depreciation and impairment of tangible fixed assets 3,105 3,018
Amortisation of intangible fixed assets 1,833 2,263
(Gains)/losses on investments (109,305) (84,875)
Loss on disposal of fixed assets 40 -
Decrease/(increase) in debtors 49,003 (112,068)
(Decrease)/increase in creditors (3,227) 5,817
Total 141,456 (13,564)

24. Pensions and other post-retirement benefits

Defined contribution pension plans

LifeArc operates a defined contribution pension plan for its employees. The amount of contributions recognised as an expense during the year was £2,219,335 (12 months to December 2023 – £1,682,000).

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25. Related party transactions

The non-executive trustees of the Board received no remuneration from LifeArc for their services as trustees during the year.

Reimbursements for travel expenses with an aggregate value of £4,752 (2023 – £5,081) were made to 4 nonexecutive trustees (2023 – 5 non-executive trustees).

These transactions were carried out on normal commercial terms.

Trustee indemnity insurance was purchased in the year at a cost of £13,100 including insurance premium tax (2023 – £14,500).

Information about related party transactions and outstanding balances is outlined below:

Income
£000s		 Expenditure
£000s		 Debtor
£000s		 Creditor
£000s
Medicine Discovery Catapult Services Ltd1
At end date 31 December 2024 - 184 - 37
At end date 31 December 2023 - 211 - -
Medicine Discovery Catapult Ltd2
At end date 31 December 2024 - 806 - -
At end date 31 December 2023 - - - -
Dementia Research Institute3
At end date 31 December 2024 - 3,813 - -
At end date 31 December 2023 55 412 - -
RQ Biotechnology Limited4
At end date 31 December 2024 522 - 263 -
At end date 31 December 2023 1,985 - - -
Casewell Consulting5
At end date 31 December 2024 - 9 - -
At end date 31 December 2023 - 7 - -
Beacon For Rare Diseases6
At end date 31 December 2024 - 77 - -
At end date 31 December 2023 - 10 - -

1 Lynne Robb (LifeArc Trustee) is on the Board of Trustees. During the year LifeArc had expenditure of £184k on outsource fees (2023 – £211k).

2 Lynne Robb and Sue Wallcraft (LifeArc Trustees) are on the Board of Trustees. During the year LifeArc had funded awards of £806k (2023 – £Nil).

3 Jo Pisani (LifeArc Trustee) is on the Board of Trustees. During the year LifeArc funded awards of £3,813k (2023 – £412k) and had SLA income of £Nil (2023 – £55k).

4 Clare Terlouw (Head of LifeArc Ventures) is on the Board. During the year LifeArc received £Nil dividend investment income (2023 – £1,970k), and £522k income (2023 – £15k). RQ Biotechnology Limited is an associate investment.

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26. Post balance sheet events

Since 31 December 2024, the value of LifeArc’s investment portfolio (excluding early ventures) has decreased by £4.2 million as at 31 May 2025 as a result of £85.9 million losses offset by £5.2 million income, and £76.5 million of net additions.

28. Charitable status

LifeArc is a charity registered with the Charity Commissioners for England and Wales, number 1015243 and a charity registered in Scotland (number SC037861) with the Office of the Scottish Charity Regulator.

LifeArc have signed an agreement to lease 105 Judd Street for 15 years with a 10-year break clause.

27. Limited liability

LifeArc is a company limited by guarantee (company number 02698321) and thus has no share capital. In the event of LifeArc being wound up, every member of LifeArc undertakes to contribute no more than £1 to the assets of LifeArc while they are a member, or within one year after they cease to be a member, for the debts and liabilities of LifeArc contracted before they cease to be a member. The number of members at 31 December 2024 was 12 (2023 – 11).

29. Trading subsidiary

LifeArc holds 100% of the shares in LifeArc Innovations Limited. Consolidated accounts have not been prepared as its inclusion is not material for the purpose of giving a true and fair view.

30. Ultimate controlling party

LifeArc is controlled by its members.

31. Comparative statement of financial activities

Notes Unrestricted
funds £000s		 Restricted
£000s		 Total funds
2023 £000s		 Total funds
2022 £000s
Income and endowments from
Charitable activities 1 142,576 478 143,054 3,321
Investments 2 26,459 – 26,459 19,536
Other income 3 66 – 66 22
Total income and endowments – 169,101 478 169,579 22,879
Expenditure on
Raising funds 4 1,943 – 1,943 1,526
Charitable activities 5 71,018 478 71,496 58,765
Provisions 19 50 – 50 11
Total expenditure – 73,011 478 73,489 60,302
Net gains /(losses) on investments 14/15 87,187 – 87,187 (90,991)
Net gains on FX hedges – 15,842 – 15,842 851
Net income /(expenditure) – 199,119 – 199,119 (127,563)
Net movement in funds 21 199,119 – 199,119 (127,563)
Reconciliation of funds:
Total funds brought forward 21 1,186,359 – 1,186,359 1,313,922
Total funds carried forward 21 1,385,478 – 1,385,478 1,186,359

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Advisors

Statutory auditors Moore Kingston Smith LLP 9 Appold Street, London, EC2A 2AP
Bankers Lloyds Bank Plc 3rd floor, 25 Gresham Street, London EC2V 7 HN
Charity law advisors Bates Wells 10 Queen Street Place, London EC4R 1BE
Internal auditor Grant Thornton UK LLP 30 Finsbury Square, London EC2A 1AG
Investment advisors Cambridge Associates Ltd 80 Victoria Street, Cardinal Place, London SW1E 5JL
Investment custodian Northern Trust 50 Bank Street, Canary Wharf, London E14 5NT

Company and charity numbers

Company Limited by Guarantee Incorporated in England and Wales No. 2698321

Charity registered with the Charity Commission for England and Wales No. 1015243

Charity registered in Scotland with the Office of the Scottish Charity Regulator No. SC037861

Registered address and principal place of business

Lynton House, 7 - 12 Tavistock Square, London WC1H 9LT

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