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ASTEX THERAPEUTICS LIMITED - Company Information

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ASTEX THERAPEUTICS LIMITED

Company Registration Number - 03751674

Annual Report and Financial Statements For the year ended 31 December 2020

ASTEX THERAPEUTICS LIMITED

REGISTERED NUMBER 03751674

DIRECTORS

T Sudo H Jhoti M Azab

T Blundell
R McQuade

COMPANY SECRETARY

N Jones

AUDITOR

Deloitte LLP Statutory Auditor London

United Kingdom

REGISTERED OFFICE

436 Cambridge Science Park Milton Road

Cambridge CB4 0QA

ASTEX THERAPEUTICS LIMITED

STRATEGIC REPORT

The directors, in preparing this Strategic Report, have complied with s414C of the Companies Act 2006.

PRINCIPAL ACTIVITIVES

The company's principal activity continues to be fragment-based drug discovery using a range of high- throughput biophysical and computational techniques, including x-ray crystallography. The company's unique approach - Pyramid™ - has enabled the generation of a pipeline of novel small molecule drug candidates which the company is advancing through collaborations.

SECTION 172 STATEMENT

The directors ensure that the company runs on the core values of its ultimate holding company, Otsuka Holdings Co., Ltd which are:

Creativity – Sozosei – Resisting the urge to copy and pursuing that which only Otsuka is capable of delivering.

Actualisation – Jissho – Self actualisation through achievement, completion and discovery of truth.

Commitment – Ryukan-Godo - by sweat we recognise the way. The process of discovering the core substance of something through hard work and practice.

The directors of all UK companies must act in accordance with a set of general duties. These duties are detailed out in section 172 of the UK Companies Act 2006. The Board of Directors, both individually and together, consider that they have acted in a way they consider good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and in doing so have regard, amongst other matters, to:

The likely consequences of any decision in the long term

The business philosophy of the company is to provide long term value for both scientific collaborators and shareholders alike. We invest in both high calibre individuals who will grow with us over the long term and scientific innovation and rigour to ensure long-term success of the company.

The interests of the company's employees

The company is committed to diversity and inclusion and offering equal opportunities to all people in their recruitment, training, and career development. Monthly company meetings keep the employees informed of all key decisions and developments. There has been continued support for all employees during the year, with help and assistance available for physical and mental wellbeing as well as covid secure working conditions on return to the workplace.

The need to foster the company's business relationships with suppliers, customers and others

The company's reputation depends on good business relationships with suppliers and scientific collaborators. We continue to pay our suppliers on or before the due date.

The company has a rigorous process to ensure stakeholders are included in the decision-making process. The Board of Directors, Scientific Advisory Board, affiliate companies and employees are all included throughout the year with regular and continuous communication and scientific interactions.

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

The company considers the impact on the wider community and environment of its business activities with future success being based on achieving balance and sustainability with regard to our economic, social and environmental goals.

ASTEX THERAPEUTICS LIMITED

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

As part of the Otsuka group, the company strives to maintain high standards of business conduct in all actions in relationships with both scientific collaborators and suppliers by following all of Otsuka's codes of conduct and compliance policies.

The need to act fairly between members of the company

As a wholly owned subsidiary with an ultimate holding company of Otsuka Holdings Co., Limited, the interests of the company are aligned with those of its ultimate parent company.

REVIEW OF THE BUSINESS

The company continues to progress its discovery portfolio with the key objective of producing clinical candidates.

The company's key financial performance indicators during the year were as follows:

2020

2019

Change

81,506,711

76,516,397

Turnover

46,792,844

42,946,851

Operating costs

29,862,670

28,999,130

Profit after taxation

Company turnover has increased by 7%. This is primarily due to increased royalty payments in respect of the research collaborations with Novartis and Janssen and no milestone revenue payments in respect of collaborations compared to 2019.

The operating costs increased by 9% due to an increase in overall research activities.
As a result of the above the company's profit after taxation has increased by 3%.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the company are:

Scientific Risk

The company is producing novel, small molecule therapeutics and as such there is an inherent risk in relation to the success of the science. The company believes that the use of its unique approach reduces the standard industry risks in relation to the project failures before and during the clinic, but recognises that there are still significant risks in getting clinical candidates to market.

Regulatory Risk

The pharmaceutical sector is regulated by relevant authorities in the EU, US and the rest of the world. There is a risk that the company may not be able to agree study designs with regulatory authorities that are mutually acceptable or that the regulatory requirements may change during the course of the study, rendering the results of the study unusable.

Operational Risk

The Covid-19 pandemic has caused ongoing operational issues with reduction in site capacity required in order to keep employees safe. The company has mitigated this operational risk by reviewing and expanding its capabilities with third party providers where possible. It is expected there will be no overall material impact.

The risk around the UK leaving the EU on 31 January 2020 and the full implications of the new trade deal continue to be considered with all possible actions being taken to mitigate the risk, especially in respect to recruitment. No material risks have been identified so far.

ASTEX THERAPEUTICS LIMITED

Foreign Currency Risk

The company buys and sells goods and services denominated in currencies other than sterling. As a result, the value of the company's non-sterling revenues, purchases, financial assets and liabilities and cash flows can be affected significantly by movements in exchange rates in general and in US Dollar and Euro rates in particular.

RESEARCH AND DEVELOPMENT

Expenditure on research and development during the year amounted to £40,975,530 (2019: £38,254,151), all of which has been charged to the income statement.

FUTURE DEVELOPMENTS

The company has made further progress in developing and progressing its clinical candidates towards and into the clinic. It is expected that the company will be able to continue to develop additional clinical candidates and to progress its current portfolio.

Approved by the Board of Directors

and signed on behalf of the Board on 11 February 2021

N Jones

Company Secretary

ASTEX THERAPEUTICS LIMITED

DIRECTORS' REPORT

The directors present the annual report and audited financial statements of Astex Therapeutics Limited (the “company”) for the year ended 31 December 2020. Under Section 414C (11) of the Act, the directors may include in the strategic report such of the matters otherwise required by regulations made under section 416(4) to be disclosed in the directors' report as the directors consider are of strategic importance to the company. This includes principal risk and uncertainties, research and development and future developments of the business.

RESULTS AND DIVIDENDS

The retained profit for the year amounted to £29,862,670 (2019: £28,999,130), which remains to be set against reserves. The directors approved the payment of a £25m dividend during the year (2019: £25m) with no further dividends proposed.

CAPITAL MANAGEMENT

The primary objective of the company's capital management is to ensure appropriate liquid resources are available to fund the daily operations of the business. The company finances its activities with a combination of revenues from collaborations and the MSA with Otsuka Pharmaceuticals Co., Ltd an affiliate company.

ENERGY AND CARBON REPORT

In the year we continue to review sustainable energy within the company such as the current solar panels which produce on average 85,000 kWh per year. Energy usage in kWh in the year was 11,395,210 with associated greenhouse gas emissions amounting to 2,657 Tonnes CO² equivalent resulting in an intensity ration of 0.37 tonnes per m² of floor space.

UK energy use covers research and development activities.

Associated greenhouse gases have been calculated using Greenhouse gas reporting conversion factors from Department for Business, Energy and Industrial strategy. The factor is based on the carbon emissions generated by the current UK power stations per kWh generated.

GOING CONCERN

The financial statements have been prepared on a going concern basis, which assumes that the company will continue in operation for the foreseeable future, being at least twelve months from the date of approval of the financial statements and detailed in note 2.

The company continues to invest in its products which will incur future costs. Its ability to carry through its research and development programmes is dependent on the MSA with Otsuka Pharmaceutical Co., Ltd which provides funding to the company on a cost-plus basis for all agreed research and development expenditure on an annual basis.

DIRECTORS AND THEIR INTERESTS

The following directors served from 1 January 2020 to the date of this report unless otherwise noted:

T Sudo

A Bodnar - resigned 31 Dec 2020
H Jhoti

M Azab

T Blundell
R McQuade

None of the directors held interests in the shares of the company at any stage during the year.

ASTEX THERAPEUTICS LIMITED

SECTION 172

The directors have considered Section 172 as detailed in the strategic report.

DIRECTORS' INDEMNITY INSURANCE

The company has granted an indemnity to one or more of its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third-party indemnity provision remains in force as at the date of approving the Directors' Report.

POLITICAL CONTRIBUTIONS

No political donations were made during the year (2019: £nil)

FINANCIAL INSTRUMENTS

The company's principal financial instruments are restricted to cash and cash equivalents. The main purpose of the financial instruments is to fund the company's operations. Disclosures in relation to these financial instruments are detailed in note 20 of these financial statements.

APPOINTMENT OF AUDITOR

Elective resolutions to dispense with holding annual general meetings, the laying of accounts before the Company in general meeting and the appointment of auditor's annually are currently in force. Deloitte LLP will not be reappointed as Company Auditors, the directors are currently looking to appoint a new firm, following a global audit tender process.

DISCLOSURE OF INFORMATION TO THE AUDITOR

The directors who were members of the board at the time of approving the Directors' Report are listed on page 2. Each person who is a director at the date of approval of this annual report confirms that:

So far as the director is aware, there is no relevant audit information of which the company's auditor is unaware; and

The director has taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

Approved by the Board of Directors and signed on behalf of the Board on 11 February 2021.

N Jones

Company Secretary

ASTEX THERAPEUTICS LIMITED

STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE FINANCIAL STATEMENTS

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors are required to prepare the financial statements in accordance with International accounting standards in conformity with the requirements of the Companies Act 2006. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing those financial statements, International Accounting Standard 1 requires that directors:

Properly select and apply accounting policies;

Present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

Provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and

Make an assessment of the company's ability to continue as a going concern

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the company's financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ASTEX THERAPEUTICS LIMITED INDEPENDENT AUDITOR'S REPORT

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ASTEX THERAPEUTICS LIMITED

Report on the audit of the financial statements Opinion

In our opinion the financial statements of Astex Therapeutics Limited (the ‘company'):

give a true and fair view of the state of the company's affairs as at 31 December 2020 and of its profit for the year then ended;

have been properly prepared in accordance with International accounting standards in conformity with the requirements of the Companies Act 2006; and

been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements which comprise:

the income statement;

the balance sheet;

the statement of changes in equity;

the cash flow statement; and

the related notes 1 to 27.

The financial reporting framework that has been applied in their preparation is applicable law and international accounting standards in conformity with the requirements of the Companies Act 2006.

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council's (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 directors' 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 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 directors with respect to going concern are described in the relevant sections of this report.

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 directors are responsible for the other information contained within 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.

ASTEX THERAPEUTICS LIMITED INDEPENDENT AUDITOR'S REPORT

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 this gives rise to 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.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors 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 directors 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 directors are responsible for assessing the 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance 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.

We considered the nature of the company's industry and its control environment and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in, and identified the key laws and regulations that:

had a direct effect on the determination of material amounts and disclosures in thefinancial statements. These included UK Companies Act and UK Corporation Tax legislation; and

do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These included UK Health and Safety legislation, UK Anti Bribery and Corruption Act, and UK Anti Money Laundering and Terrorist Financing regulations, UK Data Protection legislation, and UK's environmental reporting regulations.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

ASTEX THERAPEUTICS LIMITED INDEPENDENT AUDITOR'S REPORT

As a result of performing the above, we identified the greatest potential for fraud in the following area, and our specific procedures performed to address them are described below:

Revenue recognition, specifically related to royalty income. This is due to the material nature of the revenue stream and the estimation required in relation to the revenue to be accrued for the final quarter of the year, which is not finalised until 2021. To address the risk associated with inappropriaterevenue recognition we have (i) performed walkthroughs and assessed the design and implementation of the controls over the royalties revenue stream (ii) performed substantive audit procedures over royalties payments during the year by agreeing the receipt to the third party confirmation and bank statement; and (iii) for the Q4 accrual specifically, we performed a separate assessment reviewing third party analysts' estimations of the sales for Q4 and challenging management's estimate of the accrued revenue balance.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

enquiring of management legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

Report on other legal and regulatory requirements

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the strategic report and the directors' report have been prepared in accordance with applicablelegal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the strategic report or the directors' report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

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

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

We have nothing to report in respect of these matters.

ASTEX THERAPEUTICS LIMITED INDEPENDENT AUDITOR'S REPORT

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Kevin Thompson (Senior Statutory Auditor) for and on behalf of Deloitte LLP Statutory Auditor

London, United Kingdom

11 February 2021

ASTEX THERAPEUTICS LIMITED

INCOME STATEMENT

for the year ended 31 December 2020

2020

2019

Notes

Revenue

81,506,711

76,516,397

Research & development costs

(40,975,530)

(38,254,151)

Administrative expenses

(5,817,314)

(4,692,700)

Operating profit

34,713,867

33,569,546

Finance revenue

75,291

132,827

Finance costs

(1,419,477)

(1,102,178)

32,600,195

Profit before taxation

33,369,681

(3,601,065)

Tax (charge)

(3,507,011)

29,862,670

Profit for the year

28,999,130

All figures relate to continuing activities.

There are no recognised gains or losses other than the gains attributable to the shareholders of the company of £29,862,670 (2019: £28,999,130) and consequently no separate statement of comprehensive income has been presented.

ASTEX THERAPEUTICS LIMITED

BALANCE SHEET

For the year ended 31 December 2020

2020

2019

Non-current assets

Current assets

Total assets
Current liabilities

Non-current liabilities

Total liabilities

Net assets
Capital and reserves

Total equity

14,921,123
187,448
22,087,559
2,049,024
3,496,619
1,106,562

43,848,335

11,120,781
2,643,713
23,936,010

37,700,504

81,548,839

(4,703,138)
(1,110,944)
(2,101,362)

(7,915,444)

(20,057,987)
-

(27,973,431)

53,575,408

100
53,575,308

53,575,408

23,473,550
249,862
20,150,480
2,049,024
4,089,320
-

50,012,236

18,780,901
2,484,260
17,706,970

38,972,131

88.984,367

(6,048,383)
(361,229)
(2,085,155)

(8,494,767)

(19,516,305)
(2,535,217)

(30,546,289)

58,438,078

100
58,437,978

58,438,078

Property, plant and equipment
Intangible assets
Right-of-use assets
Rent deposit
Investments
Deferred tax asset

Trade and other receivables
Income taxes
Cash and cash equivalents

Trade and other current liabilities
Corporation tax
Lease liabilities

Lease liabilities and other
Deferred tax liability

Share capital
Retained earnings

12
14
13
13
15
11

16
11
17

18

18

19
11

21

These financial statements for Astex Therapeutics Limited, company registration No. 03751674 were approved by the Board of Directors and signed on its behalf on

11 February 2021

by:

H Jhoti Director

ASTEX THERAPEUTICS LIMITED

STATEMENT OF CHANGES IN EQUITY

for the year ended 31 December 2020

Note

Capital
Contribution

Share
Capital

Total Equity

Retained Earnings

49,576,278

48,325,141

1,251,037

100

At 1 January 2019

28,999,130

Profit for the year

(1,251,037)

(23,748,963)

Dividend Paid

(25,000,000)

53,575,408

53,575,308

100

At 31 December 2019

29,862,670

Profit for the year

(25,000,000)

Dividend Paid

At 31 December 2020

58,438,078

58,437,978

100

ASTEX THERAPEUTICS LIMITED

CASH FLOW STATEMENT

for the year ended 31 December 2020

2020

2019

Operating activities

32,600,195

Profit before taxation

33,369,681

Interest receivable

(75,291)

(132,827)

Interest payable

667,644

714,669

Fair value loss on investment

751,833

387,509

33,569,546

34,713,867

Total operating profit

Non-cash adjustments to reconcile profit before tax to net cash flows:

Depreciation and impairment of property, plant and equipment

4,765,022

4,350,719

Loss on disposal of property, plant and equipment

2,787

Amortisation and impairment of intangible assets

82,116

96,301

Working capital adjustments:

(Decrease)/increase in trade and other receivables

(5,237,111)

1,155,963

2,997,169

978,237

Increase in trade and other payables

40,153,553

37,321,063

Net cash flows from operations

(790,929)

(614,947)

Net income tax paid

39,362,624

36,706,116

Net cash flow generated by operating activities

Investing activities

Purchase of property plant and equipment

(13,643,927)

(2,554,382)

Purchase of intangible assets

(144,530)

(75,271)

Investments paid

(1,344,534)

(1,617,379)

Interest received

75,291

132,827

Interest paid

(667,644)

(714,669)

(4,828,874)

Net cash flow used in investing activities

(15,725,344)

Financing activities

Dividends paid

(25,000,000)

Principal elements of lease payments

(2,209,813)

(2,207,447)

Net cash flow used in financing activities

(27,209,813)

(27,207,447)

7,326,303

(6,229,040)

(Decrease)/Increase in cash and cash equivalents

16,609,707

Cash and cash equivalents at the beginning of the year

23,936,010

17,706,970

Cash and cash equivalents at the year end

ASTEX THERAPEUTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

Corporate information

Astex Therapeutics Limited is a private company limited by shares, incorporated and domiciled in the United Kingdom under the Companies Act 2006 and registered in England and Wales. It is a 100% subsidiary of Otsuka America, Inc.

The financial statements are presented in pounds sterling and are prepared on a historical cost basis except for investments which are measured at fair value. The principal accounting policies adopted are set out below.

Basis of preparation and statement of compliance

The accounting policies which follow set out those policies which apply in preparing the financial statements for the year ended 31 December 2020.

The company's financial statements have been prepared in accordance with International accounting standards in conformity with the requirements of the Companies Act 2006.

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. The nature of estimation means that actual outcomes could differ from those estimates. The company do not believe there are any significant judgements, estimates or assumptions that require separate disclosure.

Going concern

The Company has a strong balance sheet, including a cash balance of £17.7m as at 31 December 2020, and no debt. The directors have prepared forecasts for the foreseeable future, which show continued future profitability and positive cashflow coupled with the lack of debt. The Directors have also considered Otsuka Pharmaceutical Co., Ltd.'s ability and willingness to continue funding through the master services agreement when considering going concern.

Summary of significant accounting policies

Property, plant and equipment

All property, plant and equipment are carried at cost less depreciation

Depreciation

Depreciation is provided on all property, plant and equipment, at rates calculated to write off the cost to the estimated residual value of each asset over its expected useful life on a straight-line basis, as follows:

Leasehold improvements

- over the useful economic life or the remaining life of lease, whichever is shorter

Computers and office equipment

- 3 to 5 years

Plant and equipment

- 5 to 8 years

Motor vehicles

- 5 years

ASTEX THERAPEUTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

The carrying values of property, plant and equipment are reviewed for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Assets under construction

All assets under construction are held at cost and are not depreciated.

Intangible assets

All intangible assets are carried at cost less amortisation.

Amortisation

Amortisation is provided on all intangible fixed assets, at rates calculated to write off the cost of each asset over its expected useful life on a straight-line basis, as follows:

Computer software

- 3 years

The carrying values of intangible fixed assets are reviewed for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Investments – Financial assets at fair value through profit or loss

Financial asset investments are held at fair value through profit or loss. Financial assets at fair value through profit or loss are carried in the balance sheet at the fair value with net changes in fair value presented as finance costs (negative net changes in fair value) or finance income (positive net changes in fair value) in the statement of profit or loss.

Inventories

Inventories are written off to the income statement as incurred.

Trade and other receivables

Trade receivables, which generally have 30-90 day terms, are recognised and carried at the lower of their original invoiced value and recoverable amount. A loss allowance is recognised on initial recognition of financial assets held at amortised cost, based on expected credit losses, and is remeasured annually with changes appearing in profit or loss. Where there has been a significant increase in credit risk of the financial instrument since initial recognition, the loss allowance is measured based on lifetime expected losses. In all other cases, the loss allowance is measured based on 12 month expected losses. For assets with a maturity of 12 months or less, including trade receivables, the 12-month expected loss allowance is equal to the lifetime expected loss allowance.

Trade and other payables

These amounts represent liabilities for goods and services provided to the company prior to the end of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less.

For the purpose of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

Research and development

Research and development expenditure is charged to the income statement as incurred. The conditions required for capitalisation of research and development expenditure have not been deemed to have been met.

Operating leases

For short term and low value leases rentals payable under operating leases are charged to the income statement on a straight-line basis over the lease term.

Right-of-use assets

The company leases R&D laboratories, offices and vehicles. Rental contracts are typically made for fixed periods of 6 months to 8 years but may have extension options.

ASTEX THERAPEUTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

Contracts may contain both lease and non-lease components. The company allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices. However, for leases of real estate for which the company is a lessee, it has elected not to separate lease and non-lease components and instead accounts for these as a single lease component.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

Fixed payments (including in-substance fixed payments), less any lease incentives receivable

Variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date

Amounts expected to be payable by the company under residual value guarantees

The exercise price of a purchase option if the company is reasonably certain to exercise that option, and

Payments of penalties for terminating the lease, if the lease term reflects the company exercising that option.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the company, the incremental borrowing rate is used, being the rate that the company would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

To determine the incremental borrowing rate, the company used third-party financing organisations to provide current borrowing rates for leases similar to the company's leases.

Pensions

Defined contributions are made by the company to certain individual employees' personal pension plans. The pension cost charge represents contributions payable in the year.

Cash-settled share-based payment plan

The Group has adopted equity-linked compensation entitlements as a cash-settled share-based payment plan. For the cash-settled share-based payments, the fair value of payments is recognised as a liability, and any changes in the fair value of the liability are recognised as profit or loss until the liability is settled.

Revenue recognition

Revenue principally consists of income received through the MSA with Otsuka Pharmaceutical Co., Ltd. together with income received from clinical and development milestones and royalties. These are stated net of trade discounts, VAT and other sales related taxes.

The clinical and development milestone payments when a corporate partner achieves key stages in development are only recognised as revenue on completion of the relevant milestone and formal agreement of completion by the corporate partner. The royalties are recognised in the same period as when the revenue for which the royalties relate to are recognised by the collaboration partner.

Income taxes

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all temporary timing differences arising between tax bases of assets and liabilities and their carrying amounts in the financial statements:

Deferred income tax assets are recognised only to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, carried forward tax credits or tax losses can be utilised.

ASTEX THERAPEUTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply when the related asset is realised or liability is settled, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Income tax is charged or credited directly to equity if it relates to items that are charged or credited to equity. Otherwise income tax is recognised in the income statement.

Foreign currencies

The functional and presentational currency of the company is pounds sterling.

Transactions in foreign currencies are recorded at the rate ruling at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the income statement.

Finance revenue and costs

Finance revenue is recognised as interest accrues using a straight-line basis over the length of the contract.

Finance cost is recognised on the same basis as is highlighted in the appropriate contracts which equates to the effective interest method.

New standards and interpretations applied in the year

There have been no new standards implemented during the year.

Revenue

Revenue recognised in the income statement is analysed as follows:

2020

2019

44,907,970

47,862,382

Otsuka Pharmaceutical Co., Ltd.

28,968,467

30,543,818

Research and development services

2,437,517

2,484,260

Research and development expenditure credit (RDEC)

202,443

616,251

Other income

76,516,397

81,506,711

Geographical analysis of revenue

An analysis of turnover by geographical market is provided below.

2019

2020

Turnover by destination

44,907,970

47,862,382

Japan

31,608,427

Europe

33,644,329

76,516,397

81,506,711

ASTEX THERAPEUTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

Operating profit

This is stated after charging / (crediting):

2019

2020

Depreciation of property, plant and machinery (note 12) Depreciation of right-of-use assets (note 13)

2,414,690

2,827,943

1,936,029

1,937,079

Amortisation of intangible assets (note 14)

82,116

96,301

Total depreciation and amortisation expenses

4,847,138

4,447,020

Staff costs (see note 8) Finance cost (see note 10)

16,665,160

14,971,144

1,419,447

1,102,178

Net foreign currency loss

73,005

650,358

Lease liability payments

2,209,813

Auditor's remuneration

The company charged the following amounts to its auditor in respect of the audit of the financial statements and for other services provided to the company

2019

2020

Audit fees for statutory audit of financial statements and group
requirements

40,425

44,500

Non-audit fees to auditor:

26,150

1,588

- taxation compliance

70,650

42,088

Staff costs and directors' emoluments

(a)

Staff costs

2019

2020

11,815,873

Wages and salaries

13,282,629

Social security costs

1,696,021

1,547,627

Other pension costs

1,686,510

1,607,644

Total wages and salaries

16,665,160

14,971,144

ASTEX THERAPEUTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

The average monthly number of employees during the year was made up as follows:

2020

2019

No.

Research and development

115

114

Administration

142

140

(b)

Directors' emoluments

2019

2020

Directors' emoluments

1,360,862

1,045,017

There are no members of defined contribution pension schemes.

The amounts in respect of the highest paid director are as follows:

2019

2020

Emoluments

1,310,862

995,017

Finance revenue

2020

2019

Bank interest receivable

75,291

132,827

10.

Finance costs

2019

2020

Fair value loss on investment

751,833

387,509

Right of use asset interest cost

667,644

714,669

1,102,178

1,419,477

ASTEX THERAPEUTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

11.

Taxation

(a) Tax on continued operations

2020

2019

Current tax:

472,009

457,414

Current year charge on RDEC

Under provision for earlier year (2018)

13,928

Under provision for earlier year (2019)

(732,099)

Current year charge on other income

583,403

1,901,873

337,241

2,359,287

Deferred tax:

(472,009)

(457,414)

Current year charge on RDEC

Current year debit on other temporary differences

3,090,835

1,679,982

Effect of rate change from 17% to 19%

(58,486)

Over provision deferred tax prior year

609,430

19,210

1,241,778

3,169,770

3,507,011

3,601,065

Total tax charge/(credit)

(b) Reconciliation of the total tax charge

The tax charge in the income statement for the year is lower than the standard rate of corporation tax in the UK of 19% (2019: 19%). The differences are reconciled below:

2020

2019

33,369,681

32,600,195

Profit before taxation

Tax calculated at UK standard rate of Corporation tax of 19% (2019: 19%)

6,340,239

6,194,038

Effect of:

(2,666,001)

(2,414,537)

Permanent differences

Adjustment in respect to prior years

Over provision deferred tax prior year

609,430

19,210

Impact of rate change

(58,486)

(197,646)

(718,171)

(Over)/under provision in earlier years

Tax charge for the year in the income statement

3,507,011

3,601,065

The current tax asset is £2,484,260 (2019 £2,643,713) which relates to RDEC. The current rate of corporation tax is 19% (2019 19%).

ASTEX THERAPEUTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

The deferred tax provided or un-provided at 19% (2019: 17%) is as follows:

Un-provided

Provided

2019

2020

2019

Deferred tax liability

Accelerated capital allowances

4,358,653

2,021,934

Deferred tax liability

4,358,653

2,021,934

Deferred tax asset

Tax losses carried forward

(1,609,852)

(3,034,593)

Research & Development tax credits

Other temporary differences

(213,584)

(93,903)

Deferred tax asset

(1,823,436)

(3,128,496)

Total deferred tax

2,535,217

(1,106,562)

Deferred tax movement

Accelerated

Tax losses carried

Research & Development

Other temporary

capital

allowances

forward

tax credits

differences

Total

Deferred tax (asset)/liability

At 1 January 2020

2,021,934

(3,034,592)

(93,904)

(1,106,562)

Current year charge/(credit)

1,668,768

1,533,403

(111,336)

3,090,835

Prior year charge

384,805

222,207

2,418

609,430

Effect of interest rate change

283,146

(330,869)

(10,763)

(58,486)

2,535,217

At 31 December 2020

4,358,653

(1,609,851)

(213,585)

There are tax losses of approximately £8.5m (2019: £17.8m) available to carry forward against future trading profits, subject to potential restriction.

ASTEX THERAPEUTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

12.

Property, plant and equipment

Computer & office

Motor

Leasehold

Plant and

Vehicles

improvements

equipment

Total

Cost:

16,799

At 1 January 2019

7,981,391

2,731,572

15,848,425

26,578,187

Additions

955,860

359,459

1,239,063

2,554,382

Assets under construction

2,263,557

Disposals

(1,045,863)

(2,357,048)

(3,402,911)

At 31 December 2019

16,799

11,200,808

2,045,168

14,730,440

27,993,215

Additions

3,163,140

856,213

9,624,574

13,643,927

Assets under construction

(2,263,557)

Disposals

12,100,391

2,901,381

24,355,014

39,373,585

16,799

At 31 December 2020

Depreciation and impairment:

At 1 January 2019

15,119

2,322,963

1,812,666

9,906,777

14,057,525

Provided during the year

561,560

312,631

1,538,819

2,414,690

1,680

Disposals

(1,045,863)

(2,354,260)

(3,400,123)

At 31 December 2019

16,799

2,884,523

1,079,434

9,091,336

13,072,092

Provided during the year

765,416

421,316

1,641,211

2,827,943

Disposals

At 31 December 2020

10,732,547

15,900,035

1,500,750

16,799

3,649,939

1,400,631

8,450,452

23,473,550

Net book value at 31 December 2020

13,622,467

Net book value at 31 December 2019

5,639,104

965,734

8,316,285

14,921,123

Net book value at 1 January 2019

1,680

5,658,428

918,906

5,941,648

12,520,662

As at 31 December 2020, amounts contracted for but not provided in the financial statements for the acquisition of property, plant and equipment amounted to £719,010 (2019: £8,259,259).

ASTEX THERAPEUTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

13.

Right of use assets

This note provides information for leases where the company is a lessee.

Amounts recognised in the balance sheet

The balance sheet shows the following amounts relating to leases:

ROUA

Buildings

Vehicles

Total

Cost:

At 1 January 2019

Additions

24,017,363

6,225

24,023,588

Disposals

At 31 December 2019

24,017,363

6,225

24,023,588

Additions

Disposals

24,017,363

6,225

24,023,588

At 31 December 2020

Depreciation and impairment: At 1 January 2019

Provided during the year

1,933,765

2,264

1,936,029

Disposals

At 31 December 2019

1,933,765

2,264

1,936,029

Provided during the year

1,934,747

2,332

1,937,079

Disposals

At 31 December 2020

3,868,512

4,596

3,873,108

20,148,851

1,629

20,150,480

Net book value at 31 December 2020

Net book value at 31 December 2019

22,083,598

3,961

22,087,559

Net book value at 1 January 2019

ASTEX THERAPEUTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

Lease Liability Maturity Analysis:

2020

2,262,384

2021

2022

2,313,996

2023

2,313,996

2024

2,313,996

Thereafter

14,818,585

Less: unearned interest

(3,545,624)

20,477,335

Lease liabilities are presented in the statement of financial position a

Lease liabilities

2019

2020

Notes

Current

(2,101,362)

(2,085,154)

Non-current

(18,392,181)

(19,918,143)

(22,019,505)

(20,477,335)

The total amount of payments made in the year amounted to £2,209,813 (2019: £2,209,813).

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balanceof the liability for each period.

Right-of-use assets are measured at cost comprising the following:

the amount of the initial measurement of lease liability

any lease payments made at or before the commencement date less any lease incentives received

any initial direct costs, and

restoration costs.

Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. If the group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset's useful life.

There are no short-term leases within the Company.

There is a rental deposit with the landlord of £2,049,024 which will be repaid at the end of the lease.

ASTEX THERAPEUTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

14.

Intangible assets

Software

Cost:

At 1 January 2019

620,458

Additions

75,271

Disposals

(234,124)

At 31 December 2019

461,605

Additions

144,530

Disposals

606,135

At 31 December 2020

Depreciation and impairment:

At 1 January 2019

411,980

96,301

Provided during the year Disposals

(234,124)

274,157

At 31 December 2019

Provided during the year

82,116

Disposals

At 31 December 2020

356,273

Net book value at 31 December 2020

249,862

Net book value at 31 December 2019

187,448

Net book value at 1 January 2019

208,478

As at 31 December 2020, amounts contracted for but not provided in the financial statements for the acquisition of software amounted to £nil (2019: £nil).

15.

Investments

Cost:

At 1 January 2019

2,266,749

Additions

1,617,379

Return of Investment

Fair value adjustment

(387,509)

At 31 December 2019

3,496,619

Additions

1,344,534

Fair value adjustment

(751,833)

At 31 December 2020

4,089,320

The investment is with the Dementia Discovery Fund which is run by SV Life Sciences. The fund has a 15-year term to October 2031. The company is committed to invest a total of £12,206,634 into the fund, with a total £5,535,437 (2019: £4,190,903) having been drawn down at the end of the year. Any adjustments to fair value are recognised in the finance cost line within the profit or loss.

ASTEX THERAPEUTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

2020

2019

16.

Trade and other receivables

Trade receivables

6,197,665

3,717,917

Prepayments and other debtors

1,720,018

1,727,248

Accrued income

9,859,340

4,693,710

VAT recoverable

714,687

608,794

Deposit for Fixed Assets

289,191

373,112

11,120,781

18,780,901

As at 31 December, the ageing analysis of trade receivables is as follows:

Carrying amount

which

Of which: not impaired on the reporting date

neither impaired

and past due in the following periods

nor past due on
the reporting
date

between 30

between 61

less than 30 days

and 60 days

and 90 days

(£)

Trade receivables

3,717,917

As at 31 Dec 2019

Trade receivables

6,197,665

As at 31 Dec 2020

As at 31 December 2020 there was £nil (2019: £nil) amount of the trade receivables which were denominated in a foreign currency.

2019

17.

Cash and cash equivalents

2020

Cash at bank and in hand

17,706,970

23,936,010

Cash at bank earns interest at floating rates based on daily bank deposit rates. There were no differences between the book value and fair value of cash and cash equivalents at each balance sheet date.

18.

Current liabilities

Notes

2020

2019

1,205,985

893,054

Trade payables

276,010

Other payables

121,277

Taxation and social security costs

822,855

334,815

Accruals

1,441,214

927,343

Accrued bonuses

2,415,557

2,167,979

2,085,154

Lease liabilities

2,101,362

11,091

VAT payable

134,341

Corporation tax

361,229

1,110,944

Current liabilities

8,494,767

7,915,444

ASTEX THERAPEUTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

Outstanding amounts in respect to the defined contribution pension scheme payable at the balance sheet date were £nil (2019: £nil).

As at 31 December 2020 there were £311,374 (2019: £40,426) of creditors which were denominated in foreign currency, being a mixture of US dollars, Euros and Swiss Francs.

19.

Non-current liabilities

Notes

2020

2019

Non-current liabilities

19,918,143

18,392,181

Lease liabilities

640,474

139,844

Share based payments

Remuneration accruals

483,650

19,516,305

20,057,987

The Company does not face a significant liquidity risk with regards to its lease liabilities.

20.

Financial instruments

The company's principal financial instruments are restricted to cash and cash equivalents. The main purpose of these financial instruments is to fund the company's operations. The company has various other financial instruments such as trade receivables and trade payables that arise directly from its operations. The company does not enter into derivative transactions in its trading arrangements.

The main risks arising from the company's financial instruments are credit risk, liquidity risk and foreign currency risks. The Board reviews and agrees policies for managing each of these risks.

Credit risk

The company manages credit risk in relation to its cash and liquid resources by predominantly using a limited number of major UK financial institutions who meet the company's credit criteria.

The only other area of material credit risk is attributable to trade receivables. The company's customers are made up of substantial blue-chip organisations or their subsidiaries. The total allowance for bad debts that was charged to the income statement in the year was £nil (2019: £nil).

Liquidity risk

The company's objective is to maintain a positive cash balance at a level adequate for daily operations. The company finances its activities with a combination of revenues from collaborations and the MSA with Otsuka Pharmaceuticals Co., Ltd.

Capital risk management

The company manages its capital to ensure it will be able to continue as a going concern. At present it has no debt or externally imposed capital requirements.

Foreign currency risk

The company makes sales and purchases in a number of overseas territories and therefore has transactional currency exposures. Such exposures arise from sales and purchases made in currencies other than the company's functional currency of sterling. The company tries to reduce this risk by maximising the number of contracts with sterling denomination.

The table below shows the company's currency exposures which comprise the monetary assets and monetary liabilities at the company that are not denominated in sterling, being the operating (or ‘functional') currency of the company.

ASTEX THERAPEUTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

As at 31 December, these currency exposures were as follows:

Net Foreign Currency Monetary Assets

US dollar

Euro

Total

17,078,921

396,311

17,475,232

2020

9,478,383

451,251

9,929,634

2019

The following table demonstrates the sensitivity to a reasonable possible change in Sterling against Euro and US Dollar exchange rates with all other variables held constant, of the company's equity.

Movement

Increase /

in exchange rate (%)

(Decrease) profit before

tax (£)

2020

10%

1,897,658

Dollar strengthening

(10)%

(1,552,629)

Dollar weakening

10%

44,035

Euro strengthening

(10)%

(36,028)

Euro weakening

2019

1,053,154

10%

Dollar strengthening

(10)%

(861,671)

Dollar weakening

10%

50,139

Euro strengthening

Euro weakening

(10)%

(41,023)

Fair values of financial assets and financial liabilities

Short-term investments and short-term deposits are made on fixed rate terms and are receivable within one year of each balance sheet date. Cash is available on demand at each balance sheet date and is subject to floating interest rates.

The company has an investment in the Dementia Discovery Fund which is run by SV Life Sciences which is held as a fair value through profit and loss investment.

The book values of the company's financial assets and financial liabilities are set out below. There is no material difference between the book value and fair value of the company's financial instruments at each balance sheet date.

All financial assets and liabilities apart from the investment are considered to be level 1 in the fair value hierarchy, as all such items are measured at fair value from observable inputs. The investment is a level 3 in the fair value hierarchy. The valuation is received from the fund managers based on the last valuation event. Movements in the year can be seen in note 15.

ASTEX THERAPEUTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

2020

2019

Financial assets:

Fair value through profit or loss

4,089,320

3,496,619

Financial assets at amortised cost:

Cash

17,706,970

23,936,010

Trade receivables

6,197,665

3,717,917

Accrued income

9,859,340

4,693,710

Deposits

2,338,215

2,422,136

40,191,510

38,266,392

Financial liabilities at amortised cost:

Trade payables

1,205,985

893,054

Accruals

1,441,214

927,343

Lease liabilities

20,477,335

22,019,504

23,124,534

23,839,901

Share capital

21.

2020

2019

No.

Ordinary shares of 0.1p each:

- authorised, allotted, called up and fully paid

100,000

During the year there was a dividend payment of £25m (2019: £25m), which equates to a payment of £250 per share (2019: £250 per share).

22.

Share based payments

The Company has adopted equity-linked compensation entitlements as a cash-settled share-based payment plan for certain employees. The Company grants the entitlements to employees who have the rank as of the time of the grant and makes the payment in cash, taking into account the level of achievement of group performance targets and the group share price during the five year plan.

Share-based payment expenses

The breakdown of share-based payment expenses is as follows:

2020

2019

Cash Settled

500,630

139,844

The carrying amount of liabilities arising from share-based payment transactions is £640,474 (2019

£139,844)

ASTEX THERAPEUTICS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

23.

Employee benefits – post employment benefits

The company has a defined contribution plan covering substantially all its employees, which requires contributions to be made into a separately administered fund. Details of contributions made by the company in each accounting period are described in note 8. As at 31 December 2020 there was an outstanding contribution of £nil (2019: £nil).

24.

Other commitments

The company's total commitments as at 31 December 2020 were £7,390,207 (2019: £16,274,990).

The company is committed to making further investments of up to £6,671,197 (2019: £8,015,731) in the Dementia Discovery Fund which has a 15-year term to October 2031.

The remaining other commitments of £1,154,670 (2019: £8,259,259) relate to fixed assets which will be finalised within 12 months.

25.

Related party transactions

On 1 January 2014, the company signed an MSA with Otsuka Pharmaceuticals., Ltd who are the parent company of Otsuka America, Inc. who are in turn the parent company of Astex Therapeutics Limited. During the year the value of revenue was £47,862,382 (2019: £44,907,970) with a year-end open receivable of £5,373,836 (2019: £3,717,917).

Astex Therapeutics Limited have collaboration agreements to work on targets with Taiho Pharmaceutical Co., Ltd, who both have Otsuka Holdings Co., Ltd. as their ultimate holding company. Both companies are responsible for their own costs on the projects with future revenue share based on the costs and expenses arising from the research, development and commercialisation costs.

26.

Ultimate parent company

Otsuka America, Inc., with registered office of 1 Embarcadero Center #2020, San Francisco, CA 94111, United States, is the 100% owner of the share capital in Astex Therapeutics Limited. Otsuka Holdings Co., Limited, a company incorporated in Japan, is regarded as the ultimate parent and controlling party and both the smallest and largest group within which the results of the company are included, and for which consolidated financial statements are prepared. Copies of these financial statements may be obtained from its registered address, 2-9 Kanda Tsukasa-Choi, Chiyoda-Ku, Tokyo 101-8535, Japan.

27.

Post balance sheet events

There has been a 3rd national lockdown since 6th January 2021 and there continues to be restricted access to the facilities over this lockdown resulting in no material financial impact.