International collaboration and industrial funding highlight latest round of funding from Genome Canada

Genome Canada (GC) has announced funding of $155 million for a second round of 34 large-scale projects that it hopes will accelerate Canada’s objective of moving further up the ranks of nations performing genome and genome-related research. The latest competition was marked by dramatically higher levels of industry and international participation as the non-profit organization’s strategy of reaching out to both sectors begins to achieve tangible results.

The GC funding is provided on a matching basis, meaning the total value of the projects is at least $311 million including $60-90 million from industry. The tally could go higher as negotiations on funding commitments continue. GC expects to release its share of funds from the latest round by the end of June, while the matching money is to be secured by the five regional genome centres which are responsible for managing the projects.

The Round Two competition received $1.1 billion in proposals, including $200 million from industry. The national success rate was 28.2%.

The Ontario Genomics Institute received $59 million from GC, the largest amount for any jurisdiction. That funding will support 11 mostly health-related projects valued at $118 million, accounting for about 38% of the overall competition.

In the first competition last year, GC contributed $136 million to 17 projects and five science platforms worth more than $270 million (R$, April 23/01). The total now invested in or committed to genomics research in just one year stands at nearly $600 million.

“These projects have put Canada at the forefront of genomics and proteomics research. They’re exclusively large-scale that can’t be funded by universities, venture capital or provincial government,” says Godbout, adding that the costs of the projects vary widely but average $9 million over three years. “Canada was sixth in the world in 1999 but now we can claim we’re between third and fourth because of our commitment. In some cases we’re leading international consortia.”

Genomics research globally is dominated by the US, followed by the UK, which account for an annual output of more than 25,000 and 7,000 scientific publications respectively. Germany, France and Japan follow with approximately 4,000 each, while Canada stands at 2,400 a year. Publications stemming from the latest round of projects is expected to vault Canada past at least two nations, and the target is to be third within three years.

LARGEST PROJECT IS AGRICULTURAL

In the latest competition, health-related research continues to be the largest single project category, but there was considerable success in other sectors. The most notable in dollar terms was agricultural genomics, which captured the largest award of the competition ($26.9 million). The project — Functional Pathogenomics of Mucosal Immunity — is jointly led by Dr Lorne Babiuk and Dr Bob Hancock. GC funding of $13.5 million will be roughly split between Genome Prairie and Genome British Columbia. Genome Prairie is also home to a $17-million project in which a private sector firm is the applicant. MDS Sciex leads the proposal for the development of enabling technologies for genomics and proteomics research. Heading the project is Dr William Davidson, MDS Sciex’s VP of science and technology.

Also significant for its size and international component is Genome Quebec’s project, A Haplotype Map of the Human Genome - Biomedical Tool for Genetic Research in Canada. The project was initiated by Dr Thomas Hudson. GC and its Canadian partners are contributing $15.2 million towards a consortium that has assembled US$150-million in funding and promises to grow even larger. Participating in the project are the Montreal Genome Centre, the UK-based Wellcome Trust Sanger Institute and the US-based Whitehead Institute/MIT Center for Genome Research.

Approximately 80% of the Round Two projects have an international component, involving researchers from many nations including the US, UK, Japan, Sweden and the Netherlands.

To reach its target of ranking third globally, GC is busily negotiating joint country-to-country research agreements with a variety of European nations as a way to leverage Canadian resources. A pending agreement with Spain, for instance, would see both countries contribute about $10 million each for jointly proposed projects involving collaborations between scientists from both sides. Similar negotiations are ongoing with Sweden, the Netherlands and Germany and should be completed within one year.

It’s an astute strategy, given the ongoing challenges of finding domestic sources for the required matching funding. This is particularly true of provincial governments which are watching budget surpluses vanish due to the economic downturn. In British Columbia, for instance, Genome BC will be seeking matching funds from sources other than the cash-strapped provincial Liberal government of Gordon Campbell.

“The project scientists have been advised not to rely on provincial funding this time,” says Dr Roger Foxall, Genome BC’s executive VP research. “We’ll be matching on the basis of collaboration and international relationships and build on Round One projects for funding sources for Round Two.”

Like most other regional genome centres, matching funds for Round One competitions are still not in place, prompting Genome Canada to front-end load project financing to get the research underway. To date, only Genome Quebec has announced Round One matching funds, and is just weeks away from announcing Round Two funding.

“Quebec is the only region to formally commit, but I’m confident that funding will come into place in the fullness of time,” says Marc LePage, Genome Canada’s executive VP for corporate development. “I do have some trepidation and it will be hard work.”

With the completion of Round Two awards, GC has spent nearly all of its federal funding. Ottawa provided GC with $160 million in its February 2000 Budget (R$, March 17/00), followed by an additional $140 million in year-end money in 2001, for a total of $300 million (March 5/01).

Interest on investments will yield another $50 million, bringing the grand total to $350 million. After the $291 million in funding for the first two competitions is disbursed, GC will have $60 million remaining. GC administration over five years accounts for $22 million, followed by $15 million for international partnering, $15 million for administration and $6 million for special projects discretionary to GC’s board of directors.

NOW SEEKING PHASE II FUNDING

But Godbout says Canada’s development of a research base for genomics and proteomics is far from complete, and will require substantial new public investment.

“Phase II will have to be larger than Phase I if we want to be internationally competitive. Public funding will still account for the majority,” says Godbout. “We have met with several people at a high level in government and they are highly supportive of our approach. It’s right in line with the innovation strategy recently introduced by (Industry minister Alan) Rock.”

GC is currently preparing a draft proposal for Phase II funding which will go to its board of directors for consideration on July 4. A final draft is slated for completion by the fall. Current funding is supposed to take GC to 2005, but it’s likely the Phase II proposal will be seeking new funding well before that date.

GC has long argued that the $300 million Ottawa has injected into genomics research must be viewed as an initial investment. Nearly 18 months ago, GC’s LePage estimated that the federal government needed to commit as much as $900 million in order for Canada to remain competitive (R$, December 20/00).

The Phase II proposal will focus mainly on international partnering and on filling research gaps left unfunded during Phase I competitions. GC is also hoping that research projects now underway will have matured to the point where venture capital firms may become involved. The long-term strategy is to generate intellectual property, attracting venture capital and other private sector investment.

NEW GELS PROGRAM

In other news, GC is putting the finishing touches on a national program to fund small projects focusing on ethical, environmental, legal and social issues related to genomics research (GELS). The new program will be announced by the end of May and will provide approximately $500,000 to successful national project proposals. The program will be managed by GC at arm’s length from the regional centres. To date, GC has invested $14 million in GELS projects that are being managed by the regional centres.

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