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THE INSTITUTE CONTRACTS WITH HURT NORTON AND ASSOCIATES FOR REPRESENTATION IN WASHINGTON, DC, TO INVESTIGATE AND SEEK POTENTIAL FEDERAL RESEARCH FUNDING OPPORTUNITIES OUTSIDE THE TRADITIONAL NIH PROCESS. 21200471 9000 2517312 921772 22805011 21602848 29575 961439 1393391 21200471 19352544 1050000 1656322 456018 21602848 15181323 2983403 1912336 724518 19352544 17485831 55002 -2359510 0 15181323 0.43580 0.52760 0.03660 false false 25793087 25793087 162682250 55177762 107504488 99269550 78021572 21247978 548713 548713 155094266 0 0 X 155472000 2773536 556 2774092 152697908 12288 12288 152710196 147658000 -1305802 -1305802 148963802 12288 12288 148976090 INTENDED USES OF THE ORGANIZATION'S ENDOWMENT FUNDS SCHEDULE D, PART V, LINE 4 THE INSTITUTE'S ENDOWMENT FUNDS ARE ESTABLISHED FOR VARIOUS PURPOSES: SCIENTIFIC RESEARCH, ALS RESEARCH, CEO CHAIR, PRESIDENTIAL CHAIR, CANCER RESEARCH CHAIR, AND UNRESTRICTED AS TO INCOME. FIN 48 FOOTNOTE SCHEDULE D, PART X, LINE 2 THE INSTITUTE HAS NO MATERIAL DEFERRED TAX ASSETS OR DEFERRED TAX LIABILITIES RECORDED AS OF JUNE 30, 2013 AND 2012. THE INSTITUTE DID NOT RECOGNIZE A CHANGE IN LIABILITY FOR UNRECOGNIZED TAX BENEFITS (THE DIFFERENCE BETWEEN A TAX POSITION TAKEN, OR EXPECTED TO BE TAKEN, IN A TAX RETURN AND THE BENEFIT RECOGNIZED AND MEASURED IN THE FINANCIAL STATEMENTS). THE INSTITUTE'S LIABILITY FOR UNRECOGNIZED TAX BENEFITS WAS $0 AT JUNE 30, 2012 AND 2013. DETAIL OF AMOUNT SCHEDULE D, PART XI, LINE 2D ROUNDING - 556 DETAIL OF AMOUNT SCEDULE D, PART XII, LINE 2D UNREALIZED GAIN ON INTEREST RATE SWAP $1,306,042 ROUNDING (240) ----------- TOTAL $1,305,802 Europe (Including Iceland and Greenland) 54 Program Services SEE PART V 108839 East Asia and the Pacific 28 Program Services SEE PART V 59718 North America 2 Program Services SEE PART V 1082 South Asia 3 Program Services SEE PART V 2503 Middle East and North Africa 4 Program Services SEE PART V 618 South America 5 Program Services SEE PART V 9960 Central America and the Caribbean 4 Program Services SEE PART V 10370 Sub-Saharan Africa 5 Program Services SEE PART V 14880 76 105 207970 207970 false false false false false false SUPPLEMENTAL INFORMATION SCHEDULE F, PART I, LINE 3 SANFORD-BURNHAM MEDICAL RESEARCH INSTITUTE DOES NOT MAINTAIN ONGOING OPERATIONS IN FOREIGN JURISDICTIONS. HOWEVER, THE INSTITUTE'S SCIENTISTS DO TRAVEL TO VARIOUS SCIENTIFIC CONFERENCES IN OTHER COUNTRIES TO SHARE THE INSTITUTE'S SCIENTIFIC DISCOVERIES, AS WELL AS TO LEARN FROM OTHER SCIENTISTS ACROSS THE WORLD. SCHEDULE F, PART I, LINE 3, COLUMN E SPECIFIC PROGRAM SERVICE ACTIVITY IN ALL REGIONS IS AGENTS ATTENDING AND/OR SPEAKING AT SCIENTIFIC CONFERENCES AND COLLABORATIONS. ACCOUNTING METHOD SCHEDULE F, PART I, LINE 3, COLUMN F THE ACCRUAL METHOD OF ACCOUNTING WAS USED TO DETERMINE THE AMOUNTS IN PART I, LINE 3, COLUMN (F). 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THIS WAS NOT TREATED AS TAXABLE COMPENSATION. HEALTH OR SOCIAL CLUB DUES HEALTH OR SOCIAL CLUB DUES ARE NEGOTIATED IN THE HIRING PROCESS FOR CERTAIN EMPLOYEES. THE AMOUNTS WERE TREATED AS TAXABLE COMPENSATION. SEVERENCE PAYMENT OR CHANGE OF CONTROL PAYMENT SCHEDULE J, PART I, QUESTION 4A CYRIL DOUCET WAS PAID $83,261 FOR SEVERANCE DURING THE YEAR. SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN SCHEDULE J, PART I, QUESTION 4B THE PARTICIPANTS OF THE 457(F) DEFERRED COMPENSATION PLAN ARE JOHN REED AND KRISTIINA VUORI. VESTING FOR JOHN REED OCCURS THE EARLIEST OF 1/1/2019, OR DISABILITY, OR INVOLUNTARY TERMINATION WITHOUT CAUSE, OR THE PARTICIPANT'S RESIGNATION FOR GOOD CAUSE, OR THE DATE OF TERMINATION OF THE PLAN. VESTING FOR KRISTIINA VUORI OCCURS THE EARLIEST OF 4/1/2015, OR INVOLUNTARY TERMINATION WITHOUT CAUSE, OR PARTICIPANT'S RESIGNATION FOR GOOD CAUSE, OR THE DATE OF TERMINATION OF THE PLAN. DISTRIBUTIONS FOR BOTH PARTICIPANTS IS A ONE-TIME LUMP SUM PAYMENT UPON VESTING OF 100% OF THE VALUE OF THE PARTICIPANT'S INVESTMENT (COMPRISED OF INSTITUTE CONTRIBUTIONS TO THE CORPUS PLUS ANY INVESTMENT GAINS OR LOSSES THEREON). NON-FIXED PAYMENTS SCHEDULE J, PART I, QUESTION 7 SOME SENIOR EXECUTIVES HAVE EMPLOYMENT AGREEMENTS STIPULATING A BONUS WILL BE PAID TO THEM PROVIDED CERTAIN GOALS OR ACCOMPLISHMENTS ARE ACHIEVED. RETIREMENT AND OTHER DEFERRED COMPENSATION SCHEDULE J, PART II, COLUMN (C) THE AMOUNT REPORTED IN SCHEDULE J, PART II, COLUMN (C) FOR JOHN REED INCLUDES AN ACCRUAL OF $350,000 RELATED TO THE 457(F) PLAN DESCRIBED ABOVE AND FOR KRISTIINA VUORI AN ACCRUAL OF $300,000 RELATED TO THE 457(F) PLAN DESCRIBED ABOVE. THESE AMOUNTS ARE NOT VESTED AND ARE SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE. 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SCHEDULE K, PART I, ROWS A-C 0 FOR THE BOND ISSUES LISTED IN PART I, THE ALTERNATIVE PERIOD USED FOR THE REPORTING REQUIREMENTS IN THIS SECTION IS THE TWELVE MONTHS ENDED DECEMBER 31, 2012. SCHEDULE K, PART III, LINE 4, COLUMN (C) 0 THE PERCENTAGE OF FINANCED PROPERTY USED IN A PRIVATE BUSINESS FOR THE ANNUAL MEASUREMENT PERIOD ENDING 12/31/2012 IS 5.61%. THE PRIVATE BUSINESS USE PERCENTAGE OVER THE LIFE OF THE BONDS THROUGH 12/31/2012 IS 3.81%. THE PROJECTED PRIVATE BUSINESS USE PERCENTAGE OVER THE LIFE OF THE BONDS IS 4.19%. DANIEL KELLY EMPLOYEE QUAL. EMPLOYEE RELOC X 500000 454167 false true true STUART LIPTON EMPLOYEE QUAL. EMPLOYEE RELOC X 400000 171915 false true true GARY RAISL OFFICER QUAL. EMPLOYEE RELOC X 225000 225000 false true true JORGE MOSCAT EMPLOYEE QUAL. EMPLOYEE RELOC X 200000 86863 false true true 937945 LOCKTON TRUSTEE - DOUG OBENSHAIN 202078 INSURANCE SERVICES false PHILIP GRAHAM - SON OF TRUSTEE TRUSTEE - GAYLE WILSON 191138 COMPENSATION false X 10 1059634 FMV X 1 1198 COST/SELLING PRICE X MINOR EQUIPMENT 1 2500 COST/SELLING PRICE false false false CONTRIBUTIONS RECEIVED SCHEDULE M, PART I, COLUMN(B) COLUMN B IS REPORTING A COMBINATION OF THE NUMBER OF CONTRIBUTIONS RECEIVED AND THE NUMBER OF ITEMS RECEIVED. ORGANIZATION'S MISSION FORM 990 - PART I, LINE 1 & PART III, LINE 1 SANFORD BURNHAM MEDICAL RESEARCH INSTITUTE CONDUCTS WORLD-CLASS COLLABORATIVE RESEARCH DEDICATED TO FINDING CURES FOR HUMAN DISEASE, IMPROVING THE QUALITY OF LIFE, AND THUS CREATING A LEGACY FOR ITS EMPLOYEES, PARTNERS, DONORS, AND COMMUNITY. PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4A SANFORD-BURNHAM MEDICAL RESEARCH INSTITUTE IS DEDICATED TO DISCOVERING THE FUNDAMENTAL MOLECULAR CAUSES OF DISEASE AND DEVISING THE INNOVATIVE THERAPIES OF TOMORROW. SANFORD-BURNHAM TAKES A UNIQUE, COLLABORATIVE APPROACH TO MEDICAL RESEARCH AND HAS ESTABLISHED MAJOR RESEARCH PROGRAMS IN CANCER, NEURODEGENERATION, DIABETES, AND INFECTIOUS, INFLAMMATORY, AND CHILDHOOD DISEASES. CANCER RESEARCH BREAKING A VICIOUS CYCLE IN PANCREATIC CANCER. PANCREATIC CANCER, WHICH TYPICALLY KILLS PATIENTS A YEAR AFTER DIAGNOSIS, GENERATES TUMORS COMPRISED MOSTLY OF FIBROUS TISSUE. THIS TISSUE OBSTRUCTS BLOOD FLOW, WHICH MAKES IT DIFFICULT FOR DRUGS TO REACH INSIDE TUMORS. WORK PUBLISHED BY DR. GARTH POWIS IN "CANCER RESEARCH" REPORTS THAT HYPOXIA MAY CAUSE SIGNALING THAT LEADS PANCREATIC CANCER CELLS TO RELEASE A PROTEIN THAT IN TURN CAUSES SURROUNDING NORMAL PANCREATIC TISSUE TO PRODUCE LARGE AMOUNTS OF FIBROUS TISSUE. POWIS IDENTIFIED A MOLECULE INCREASED DURING HYPOXIA CALLED HYPOXIA INDUCIBLE FACTOR (HIF) THAT TRIGGERS THE PROTEIN THAT DRIVES FIBROSIS. BY DEVELOPING A DRUG THAT INHIBITS HIF, HE BROKE THE CYCLE OF HYPOXIA AND FIBROSIS-OFFERING A POTENTIAL NEW TREATMENT. NEWLY IDENTIFIED THERAPEUTIC TARGET FOR PROSTATE CANCER. THE LABS OF DRS. MARIA T. DIAZ-MECO AND JORGE MOSCAT HAVE IDENTIFIED HOW AN ENZYME CALLED PKCZ SUPPRESSES PROSTATE TUMOR FORMATION. THE FINDING, WHICH ALSO DESCRIBES A MOLECULAR CHAIN OF EVENTS THAT CONTROLS CELL GROWTH AND METASTASIS, COULD LEAD TO NOVEL WAYS TO CONTROL DISEASE PROGRESSION. THIS STUDY, PUBLISHED IN "PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES," SUGGESTS THAT RESTORING PKCZ COULD PROVIDE A NEW APPROACH TO TREATING PROSTATE CANCER. STOPPING MELANOMA BY CHANGING A PROTEIN'S LOCATION. IN A STUDY WITH THE CHEMICAL GENOMICS GROUP, DR. ZE'EV RONAI COMPLETED A PROOF-OF-CONCEPT STUDY THAT IDENTIFIED SMALL MOLECULES THAT PROMOTE THE EXPORT OF A PROTEIN CALLED ATF2 FROM A CELL'S NUCLEUS. EARLIER WORK FROM DR. RONAI'S GROUP SHOWED THAT THE PROTEIN, WHILE INSIDE THE NUCLEUS, PROMOTES CANCER. THE PRESENCE OF ATF2 OUTSIDE THE NUCLEUS IN MITOCHONDRIA, HOWEVER, PROMPTS MELANOMA CANCER CELLS TO SELF-DESTRUCT. IN THEIR NEW STUDY, DR. RONAI'S TEAM SCREENED 3,800 COMPOUNDS TO IDENTIFY SMALL MOLECULES THAT PROMOTE THE MOVEMENT OF ATF2 TO THE CELL'S CYTOPLASM OUTSIDE THE NUCLEUS. TWO COMPOUNDS WERE FOUND TO REDUCE CELL VIABILITY, INHIBIT THE FORMATION OF CELL COLONIES, INHIBIT CELL MOTILITY, AND LEAD TO OTHER DAMAGING EFFECTS. THE STUDY, PUBLISHED IN "CLINICAL CANCER RESEARCH," POINTS THE WAY TOWARD IDENTIFYING SMALL MOLECULES THAT BLOCK THE CANCER-CAUSING FUNCTION OF ATF2. SMIP004 AS A NOVEL TREATMENT FOR ADVANCED PROSTATE CANCER. A MAJOR HALLMARK OF CANCER CELLS IS THEIR ABILITY TO SURVIVE UNDER STRESSFUL CONDITIONS. A NEW STUDY SPEARHEADED BY DR. DIETER WOLF AND HIS TEAM REVEALS HOW A PROMISING ANTICANCER COMPOUND CALLED SMIP004 SPECIFICALLY KILLS PROSTATE CANCER CELLS BY COMPROMISING THEIR ABILITY TO WITHSTAND ENVIRONMENTAL STRESS. THE STUDY, RECENTLY PUBLISHED IN "ONCOTARGET," UNCOVERS NOVEL MECHANISMS OF ANTICANCER ACTIVITY AND COULD LEAD TO THE DEVELOPMENT OF MORE EFFECTIVE THERAPIES FOR ADVANCED AND HARD-TO-TREAT FORMS OF PROSTATE CANCER, AS WELL AS OTHER TYPES OF CANCER. WHY THE SHAPE OF NANOPARTICLES MATTERS. CONVENTIONAL TREATMENTS FOR DISEASES SUCH AS CANCER CAN CARRY HARMFUL SIDE EFFECTS-AND THE PRIMARY REASON IS THAT SUCH TREATMENTS ARE NOT TARGETED SPECIFICALLY TO THE CELLS OF THE BODY WHERE THEY'RE NEEDED. DR. ERKKI RUOSLAHTI AND COLLABORATORS AT UC SANTA BARBARA FOUND THAT THE SHAPE OF NANOPARTICLES CAN ENHANCE DRUG TARGETING. THE STUDY, PUBLISHED IN "PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES," FOUND THAT ROD-SHAPED NANOPARTICLES APPEAR TO ADHERE MORE EFFECTIVELY TO THE SURFACE OF ENDOTHELIAL CELLS THAT LINE THE INSIDE OF BLOOD VESSELS. THE FINDINGS HOLD PROMISE IN THE DELIVERY OF DRUGS SUCH AS CHEMOTHERAPEUTICS, WHICH ARE HIGHLY TOXIC. A NEW APPROACH TO TREATING BRAIN CANCER. MEDULLOBLASTOMA IS THE MOST COMMON MALIGNANT BRAIN CANCER IN CHILDREN. ALTHOUGH MANY PATIENTS CAN BE CURED WITH SURGERY, RADIATION, AND HIGH-DOSE CHEMOTHERAPY, SURVIVORS OFTEN SUFFER SEVERE LONG-TERM SIDE EFFECTS SUCH AS COGNITIVE AND DEVELOPMENTAL DISABILITIES DUE TO THE AGGRESSIVE TREATMENT. A RESEARCH TEAM LED BY DR. ROBERT WECHSLER-REYA DEVELOPED A NEW EXPERIMENTAL APPROACH TO TREATING MEDULLOBLASTOMA BY TARGETING CANCER STEM CELLS-THE CELLS THAT ARE CRITICAL FOR MAINTAINING TUMOR GROWTH. THE FINDINGS, DESCRIBED IN A RECENT PAPER IN "CANCER RESEARCH," STRONGLY SUPPORT THE NOTION OF COMBINING CONVENTIONAL CHEMOTHERAPY WITH CELL-CYCLE INHIBITORS TO IMPROVE THE EFFECTIVENESS OF THERAPY FOR MEDULLOBLASTOMA PATIENTS. DIABETES, OBESITY AND CARDIOVASCULAR RESEARCH DIFFERENCES BETWEEN "MARATHON MICE" AND "COUCH POTATO MICE" REVEAL KEY TO MUSCLE FITNESS. DR. DANIEL KELLY AND COLLEAGUES DISCOVERED THAT SMALL PIECES OF GENETIC MATERIAL CALLED MICRORNAS LINK THE TWO DEFINING CHARACTERISTICS OF FIT MUSCLES: THE ABILITY TO BURN SUGAR AND FAT, AND THE SWITCH BETWEEN SLOW- AND FAST-TWITCH MUSCLE FIBERS. THE TEAM USED TWO COMPLEMENTARY MOUSE MODELS-THE "MARATHON MOUSE" AND THE "COUCH POTATO MOUSE"-TO MAKE THIS DISCOVERY. THE FINDINGS, PUBLISHED IN "THE JOURNAL OF CLINICAL INVESTIGATION," SUGGEST MICRORNAS COULD BE TARGETED FOR THE DEVELOPMENT OF NEW MEDICAL INTERVENTIONS AIMED AT IMPROVING MUSCLE FITNESS IN PEOPLE WITH CHRONIC ILLNESS OR INJURY. PROGRESS TOWARD A CURE FOR DIABETES. IN BOTH TYPE 1 AND TYPE 2 DIABETES, LOSS OF THE PANCREATIC BETA-CELLS THAT PRODUCE INSULIN IN RESPONSE TO GLUCOSE IS A CRITICAL FEATURE OF THE DISEASE. IN TWO PAPERS PUBLISHED IN THE JOURNAL "STEM CELLS," DR. FRED LEVINE'S LAB DEMONSTRATES PROGRESS TOWARD CREATING FUNCTIONAL BETA CELLS. IN THE FIRST PAPER, THEY DEVELOPED A NEW MODEL OF RECONSTITUTING A NORMAL MASS OF FUNCTIONAL BETA CELLS IN MICE WHERE ALMOST ALL BETA CELLS HAD BEEN ELIMINATED. IN THEIR SECOND PAPER, THEY SHOW THAT A DRUG THEY DEVELOPED POTENTLY INDUCES BETA CELLS TO REPLICATE. THEY ARE WORKING ON A DRUG THAT CAN INDUCE BETA-CELL NEOGENESIS THAT, WHEN COMBINED WITH THE DRUG THAT INDUCES BETA-CELL REPLICATION, WILL PROVIDE A POTENT MIX TO INDUCE THE RECOVERY OF A NORMAL BETA-CELL MASS IN DIABETIC PATIENTS. FULL VISIBILITY OF NOVEL FACTORS IMPORTANT FOR INSULIN SECRETION. DR. PAMELA ITKIN-ANSARI AND COLLABORATORS AT THE SCRIPPS RESEARCH INSTITUTE HAVE REPORTED THE FIRST COMPREHENSIVE MAP OF THE PROTEIN INTERACTIONS THAT ENABLED CELLS IN THE PANCREAS TO PRODUCE, STORE, AND SECRETE INSULIN. THE MAP, CALLED AN "INSULIN-INTERACTOME" MAP, PROVIDES FULL VISIBILITY OF THE INTRICACIES OF THE INSULIN-SECRETION PROCESS. THE STUDY, PUBLISHED IN "CELL REPORT," HAS ALREADY YIELDED NOVEL FINDINGS, INCLUDING THE KEY ROLE OF A PROTEIN CALLED TMEM. THE STUDY IS IMPORTANT BECAUSE IT PROVIDES A DEEPER SCIENTIFIC UNDERSTANDING OF THE INSULIN-SECRETION PROCESS, WHICH MAY YIELD NEW TARGETS FOR THERAPEUTIC INTERVENTION IN DIABETES. NEW OBESITY DRUG REDUCES "BAD" BELLY FAT. BELLY FAT, ALSO CALLED VISCERAL FAT, IS LINKED TO AN INCREASED RISK OF HEART DISEASE, DIABETES, AND STROKE. IN A PAPER PUBLISHED IN "DIABETES, OBESITY AND METABOLISM," DR. STEVEN SMITH AND HIS COLLABORATORS TESTED WHETHER A NEW OBESITY DRUG IN LATE STAGE CLINICAL TESTING CALLED "CONTRAVE" MIGHT REDUCE "BAD" ABDOMINAL FAT. "BAD" FAT IS ASSOCIATED WITH COMPLICATIONS OF OBESITY SUCH AS DIABETES AND CARDIOVASCULAR DISEASE. THEY FOUND THAT THE DRUG, IN COMBINATION WITH OTHER THERAPIES, DECREASED "BAD" FAT, WITH SOME PATIENTS SHOWING UP TO A 40 PERCENT REDUCTION. CONTRAVE IS NOW BEING TESTED IN A LARGE MULTI-CENTER STUDY FOR ITS AFFECT ON CARDIOVASCULAR EVENTS, SUCH AS HEART ATTACKS. DISCOVERY OF A NEW MECHANISM LEADING TO ATHEROSCLEROSIS. IN A PAPER PUBLISHED IN "ARTERIOSCLEROSIS, THROMBOSIS, AND VASCULAR BIOLOGY," DR. DWIGHT TOWLER AND COLLEAGUES DESCRIBED A PATHWAY THAT LEADS TO HARDENING OF ARTERIES (ATHEROSCLEROSIS). THIS WORK ZEROED IN ON A PARTICULARLY DELETERIOUS PROTEIN CALLED DKK1. WHEN FUNCTIONING NORMALLY, DKK1 IS IMPORTANT FOR AIDING IN WOUND REPAIR. BUT INFLAMMATORY RESPONSES TRIGGERED INSIDE ARTERY WALLS ASSOCIATED WITH DISEASES LIKE DIABETES CAN TRIGGER PROLONGED AND DESTRUCTIVE DKK1 ACTIVITY. TOWLER AND HIS TEAM WILL CONTINUE TO STUDY DKK1 TO IDENTIFY POTENTIAL DRUG TARGETS TO PREVENT HARDENING OF ARTERIES IN PATIENTS WITH ATHEROSCLEROSIS. PROGRAM SERVICE ACCOMPLISHMENTS CONTINUED PATIENTS' OWN SKIN CELLS ARE TRANSFORMED INTO HEART CELLS TO CREATE "DISEASE IN A DISH." MOST PATIENTS WITH ARRHYTHMOGENIC RIGHT VENTRICULARDYSPLASIA/CARDIOMYOPATHY (ARVD/C) DON'T KNOW THEY HAVE A PROBLEM UNTIL THEY'RE IN THEIR EARLY20S-WHEN THEY'RE DIAGNOSED AT ADVANCED STAGES OR AFTER SUDDEN DEATH. A TECHNIQUE CALLED "DISEASE IN A DISH" MIGHT BRING NEW HOPE TO ARVD/C PATIENTS. DR. HUEI-SHENG VINCENT CHEN AND HIS TEAM RECENTLY TOOK SKIN SAMPLES FROM TWO ARVD/C PATIENTS. THEN, USING STEM CELL-BASED TECHNOLOGY THAT GARNERED A 2012 NOBEL PRIZE, THEY CONVERTED THE SKIN CELLS INTO HEART CELLS. IN A PAPER PUBLISHED IN "NATURE," THE RESEARCHERS UNVEILED THE FIRST MATURATION-BASED "DISEASE IN A DISH" MODEL FOR ARVD/C. THE MODEL WAS CREATED IN COLLABORATION WITH DR. DANIEL KELLY, AND IS LIKELY MORE RELEVANT TO HUMAN ARVD/C THAN OTHER MODELS AND BETTER SUITED FOR STUDYING THE DISEASE AND TESTING NEW TREATMENTS. INFECTIOUS AND INFLAMMATORY DISEASE THWARTING INFLAMMATION. VIRUSES HAVE EVOLVED TO EVADE THE IMMUNE SYSTEM, WHICH IS WHY THEY CAUSE INFECTIONS. HOWEVER, SOME VIRUSES, LIKE THE SMALLPOX VIRUS (NOW ERADICATED WORLDWIDE), HAVE MANY TRICKS TO THWART THE IMMUNE SYSTEM. A STUDY FROM DRS. REED'S AND LIDDINGTON'S LABORATORIES DEMONSTRATED HOW VACCINIA VIRUS, THE VACCINE STRAIN USED AGAINST SMALL-POX VIRUS, SUPPRESSES INFLAMMATION. PUBLISHED IN "PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCE," THE RESULTS DEMONSTRATE A VIRAL PROTEIN CALLED F1L THWARTS INFLAMMATION BY ALTERING A KEY HOST FACTOR KNOWN AS NLRP1. INTERESTINGLY, A SMALL PEPTIDE FROM F1L BLOCKS INFLAMMATION, SUGGESTING IT MAY HAVE POTENTIAL AS A DRUG TO TREAT ARTHRITIC CONDITIONS. PREVENTING AUTOIMMUNE DISEASES. B-CELL PRODUCTION IN BONE MARROW GENERATES A VAST REPERTOIRE OF ANTIBODY-PRODUCING CELLS THAT COLLECTIVELY RECOGNIZE VIRTUALLY ANY FOREIGN ENTITY, INCLUDING PATHOGEN COMPONENTS-BUT IT CAN ALSO PRODUCES B CELLS THAT IN TURN PRODUCE AUTOANTIBODIES THAT CAN RECOGNIZE "SELF-ANTIGENS," LEADING TO AUTOIMMUNE DISEASES. IN THE "JOURNAL OF IMMUNOLOGY," DR. ROBERT RICKERT'S LAB INVESTIGATED THE CELLULAR PROCESSES THAT CONTROL B-CELL TOLERANCE, WHICH PREVENTS B CELLS FROM PRODUCING ANTIBODIES TO SELF-ANTIGENS. THEY DEVELOPED A NOVEL MODEL TO SHOW THAT FOLLICULAR DENDRITIC CELLS (FDCS) KEY TO ELIMINATING AUTO-REACTIVE B CELLS TO SELF-ANTIGENS. THE FINDINGS PROVIDE A NEW PERSPECTIVE ON HOW AUTOIMMUNE DISEASE MAY BE PREVENTED. THE RESEARCH WAS RECENTLY RECOGNIZED TO BE OF SPECIAL SIGNIFICANCE BY THE FACULTY OF 1000. ONE IN A MILLION. THE IMMUNE SYSTEM PROTECTS US AGAINST INFECTIONS. BUT, SOMETIMES IT TURNS AGAINST US CAUSING AUTOIMMUNE DISEASE. IN RHEUMATOID ARTHRITIS, IMMUNE CELLS TERMED LYMPHOCYTES, SECRETE TNF (TUMOR NECROSIS FACTOR), A PROTEIN THAT CAN PROMOTE DESTRUCTION OF THE JOINTS, CAUSING PAIN AND SEVERE BONE EROSION. ANTI-TNF THERAPY IS SUCCESSFULLY TREATS SOME PATIENTS WITH AUTOIMMUNE DISEASE. IN THE "JOURNAL OF IMMUNOLOGY," DRS. CARL WARE AND SALVO ALBANI REPORT ON AN ATYPICAL LYMPHOCYTE THAT CONTINUOUSLY SECRETES TNF DETECTED AT ABOUT ONE IN A MILLION CELLS IN THE BLOOD OF NORMAL PEOPLE. THESE ATYPICAL LYMPHOCYTES ARE DRAMATICALLY INCREASED IN THE BLOOD OF PATIENTS WITH RHEUMATOID ARTHRITIS. THEIR GOAL IS TO UNDERSTAND WHY THESE CELLS ARE ELEVATED IN AUTOIMMUNE DISEASE. NEUROSCIENCE, AGING AND STEM CELL RESEARCH NOVEL DRUG REVERSES LOSS OF BRAIN CONNECTIONS IN MODELS OF ALZHEIMER'S. DR. STUART LIPTON AND HIS TEAM HAVE DEVELOPED THE FIRST EXPERIMENTAL DRUG TO BOOST BRAIN SYNAPSES LOST IN ALZHEIMER'S DISEASE. THE DRUG, NITROMEMANTINE, COMBINES TWO FDA-APPROVED MEDICINES, NITROGLYCERIN AND MEMANTINE, INTO A NOVEL SINGLE AGENT. TOGETHER, THEY STOP THE DESTRUCTIVE CASCADE OF CHANGES IN THE BRAIN THAT DESTROYS THE CONNECTIONS BETWEEN NEURONS, LEADING TO MEMORY LOSS AND COGNITIVE DECLINE. THE RESEARCH, PUBLISHED IN "PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES," FOCUSES ON A DOWNSTREAM TARGET TO TREAT ALZHEIMER'S, RATHER THAN ON AMYLOID BETA PLAQUES AND NEUROFIBRILLARY TANGLES-APPROACHES THAT HAVE SHOWN LITTLE SUCCESS IN THE PAST. UNRAVELING THE MOLECULAR ROOTS OF DOWN SYNDROME. DR. HUAXI XU'S LABORATORY HAS FOUND THAT PROTEIN CALLED SORTING NEXIN 27, OR SNX27, IS REDUCED IN HUMAN DOWN SYNDROME BRAINS. THE STUDY, PUBLISHED IN "NATURE MEDICINE," SHOWS THAT SNX27 HELPS KEEP GLUTAMATE RECEPTORS ON THE CELL SURFACE IN NEURONS. NEURONS NEED GLUTAMATE RECEPTORS IN ORDER TO FUNCTION CORRECTLY. WITH LESS SNX27, MICE HAD FEWER ACTIVE GLUTAMATE RECEPTORS AND THUS IMPAIRED LEARNING AND MEMORY. FURTHER STUDY REVEALED THAT CHROMOSOME 21 ENCODES ONE PARTICULAR MICRORNA CALLED MIR-155. IN HUMAN DOWN SYNDROME BRAINS, THE INCREASE IN MIR-155 LEVELS CORRELATES ALMOST PERFECTLY WITH THE DECREASE IN SNX27. THROUGH THIS MECHANISM, LEARNING, MEMORY, AND BEHAVIOR ARE IMPAIRED. TRANSPLANTED NEURAL STEM CELLS TREAT ALS IN MOUSE MODEL. AMYOTROPHIC LATERAL SCLEROSIS (ALS), ALSO KNOWN AS LOU GEHRIG'S DISEASE, IS UNTREATABLE AND FATAL. A CONSORTIUM OF ALS RESEARCHERS AT MULTIPLE INSTITUTIONS, LED BY DR. EVAN SNYDER, TESTED TRANSPLANTED NEURAL STEM CELLS AS A TREATMENT FOR THE DISEASE. IN 11 INDEPENDENT STUDIES, THEY FOUND THAT TRANSPLANTING NEURAL STEM CELLS INTO THE SPINAL CORD OF A MOUSE MODEL OF ALS SLOWS DISEASE ONSET AND PROGRESSION. THE NEURAL STEM CELLS HELP BY PRODUCING FACTORS THAT PRESERVE THE HEALTH AND FUNCTION OF THE HOST'S REMAINING NERVE CELLS. THESE FINDINGS, PUBLISHED IN "SCIENCE TRANSLATIONAL MEDICINE," DEMONSTRATE THE POTENTIAL NEURAL STEM CELLS HOLD FOR TREATING ALS AND OTHER NERVOUS SYSTEM DISORDERS. A KEY PROTEIN THAT MODULATES ORGANISMAL AGING. A STUDY DIRECTED BY DR. MALENE HANSEN IDENTIFIED A KEY FACTOR THAT REGULATES THE AUTOPHAGY PROCESS WHERE CELLULAR DEBRIS IS DIGESTED TO PROTECT CELLS FROM DAMAGE, AND WHICH IN TURN MODULATES AGING. HER LAB AND COLLABORATORS IDENTIFIED A TRANSCRIPTION FACTOR - AN ON/OFF SWITCH FOR GENES - CALLED HLH-30 THAT INDUCES AUTOPHAGY IN MODEL ORGANISMS, INCLUDING THE WORM C. ELEGANS. SINCE A SIMILAR TRANSCRIPTION FACTOR, TFEB, REGULATES AUTOPHAGY IN MAMMALIAN CELLS, THESE FINDINGS, PUBLISHED IN "NATURE COMMUNICATIONS," COULD LEAD TO THE DEVELOPMENT OF NEW THERAPIES FOR AGE-RELATED DISORDERS THAT ARE CHARACTERIZED BY A BREAKDOWN IN THIS PROCESS, FOR EXAMPLE, IN NEURODEGENERATIVE AND CARDIOVASCULAR DISEASES. CHILDREN'S HEALTH DISCOVERING AN ORAL DRUG TO PREVENT METABOLIC SYNDROME. DR. JOS LUIS MILLN'S LABORATORY AND COLLABORATORS AT MASSACHUSETTS GENERAL HOSPITAL AND HARVARD MEDICAL SCHOOL HAVE ADVANCED STUDIES SHOWING THAT ORAL ADMINISTRATION OF INTESTINAL ALKALINE PHOSPHATASE (IAP)-A GUT MUCOSAL DEFENSE FACTOR IS BENEFICIAL IN MOUSE MODELS OF CHRONIC COLITIS. IN "PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES," THE RESEARCHERS NOW SHOW THAT ORAL ADMINISTRATION OF IAP INHIBITS THE ABSORPTION OF LIPOPOLYSACCHARIDES, A MAJOR COMPONENT OF THE OUTER MEMBRANE OF BACTERIA. THE ABSORPTION OF LIPOPOLYSACCHARIDES OCCURS IN TANDEM WITH THE ABSORPTION OF DIETARY FAT. IAP, THEREFORE, IMPROVES THE LIPID PROFILE IN MICE THAT ARE FED A STANDARD, LOW-FAT DIET. THE FINDINGS MAY LEAD TO NEW WAYS TO PREVENT THE ONSET OF METABOLIC SYNDROME, A PRE-DIABETIC CONDITION. A NEW APPROACH TO PREVENTING LIVER FAILURE IN CHILDREN. WHEN CELL PROTEINS ARE MISFOLDED, THEY AGGREGATE IN THE CELL AND CAUSE CELL DEATH. IN A REPORT PUBLISHED IN "MOLECULAR BIOLOGY OF THE CELL," DR. RANDAL KAUFMAN'S LAB DESCRIBED HOW THE ENZYME "UGGT1" IS REQUIRED TO PREVENT PROTEIN AGGREGATION. THE UGGT1 ENZYME, CODED FOR BY A GENE THAT WAS FIRST ISOLATED BY KAUFMAN YEARS AGO, WAS INITIALLY THOUGHT TO PREVENT THE RELEASE OF MISFOLDED PROTEINS FROM THE ENDOPLASMIC RETICULUM. THE CURRENT STUDY USED MUTANT FORMS OF THE ?1-ANTITRYPSIN (?1-AT) LIVER PROTEIN TO SHOW THAT UGGT1 ACTUALLY PREVENTS AGGREGATION. SINCE MUTATIONS IN THE ?1-AT GENE THAT CAUSE PROTEIN AGGREGATION ARE THE MOST COMMON CAUSE OF LIVER FAILURE IN CHILDREN, THESE FINDINGS MAY GUIDE AVENUES TO TREAT AND/OR PREVENT THE MOST COMMON DEVASTATING LIVER DISEASE IN CHILDREN. GENOME-SEQUENCING DIAGNOSTICS FOR RARE DISEASES: A CAUTIONARY TALE. PROPERLY DIAGNOSING A CHILD BORN WITH CONGENITAL DISORDERS OF GLYCOSYLATION, OR CDG, AND PINPOINTING THE EXACT SUGAR GENE THAT'S MUTATED PROVIDES DOCTORS WITH USEFUL INFORMATION TO DEVELOP A THERAPEUTIC APPROACH. WHOLE-EXOME SEQUENCING, AN ABBREVIATED FORM OF WHOLE-GENOME SEQUENCING, IS INCREASINGLY USED AS A DIAGNOSTIC FOR CDG. BUT RESEARCHERS LED BY DR. HUDSON FREEZE RECENTLY DISCOVERED THREE CHILDREN WITH CDG WHO ARE MOSAICS-ONLY SOME CELLS IN SOME TISSUES HAVE THE MUTATION. FOR THAT REASON, STANDARD EXOME SEQUENCING INITIALLY MISSED THEIR MUTATIONS, HIGHLIGHTING THE TECHNIQUE'S DIAGNOSTIC LIMITATIONS IN SOME RARE CASES. THESE FINDINGS WERE PUBLISHED IN THE "AMERICAN JOURNAL OF HUMAN GENETICS." PROCESS USED BY MANAGEMENT AND/OR GOVERNING BODY TO REVIEW FORM 990 FORM 990, PART VI, LINE 11B THE 990 IS PREPARED BY THE FINANCE DEPARTMENT. IT IS REVIEWED BY THE INSTITUTE'S TAX ADVISORS, SELECTED MEMBERS OF MANAGEMENT INCLUDING THE EXECUTIVE VICE PRESIDENT/CHIEF FINANCIAL OFFICER AND CHIEF ADMINISTRATIVE OFFICER, AND THE AUDIT COMMITTEE OF THE BOARD OF TRUSTEES AND PROVIDED TO MEMBERS OF THE BOARD PRIOR TO FILING. DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICT OF INTEREST FORM 990, PART VI, QUESTION 12C CONFLICT OF INTEREST STATEMENTS ARE GIVEN TO MANAGEMENT STAFF AND PRINCIPAL INVESTIGATORS ON A PERIODIC BASIS TO REPORT ON CONFLICTS OR LACK OF CONFLICTS. THE STATEMENTS ARE REVIEWED ANNUALLY BY THE SENIOR DIRECTOR, INTELLECTUAL PROPERTY AND THE SENIOR DIRECTOR, SPONSORED RESEARCH, WITH A SUMMARY OF THE REVIEW PROVIDED TO THE EXECUTIVE VICE PRESIDENT/CAO/CFO/TREASURER. AN ASSESSMENT IS MADE TO WHETHER A CONFLICT CAN BE MANAGED BY THE EXISTING DEPARTMENTS AND PRACTICES. CONFLICTS ARE BROUGHT TO THE BOARD OF TRUSTEES ON AN AS NEEDED BASIS. CONFLICTS AND POTENTIAL CONFLICTS THAT INVOLVE THE CEO OR THE PRESIDENT ARE BROUGHT TO THE BOARD OF TRUSTEES TO ADDRESS ANY ACTUAL OR POTENTIAL POSSIBILITY THAT THE DESIGNATED REVIEWERS (i.e., SENIOR DIRECTOR, INTELLECTUAL PROPERTY AND THE SENIOR DIRECTOR, SPONSORED RESEARCH, AND THE EXECUTIVE VICE PRESIDENT/CAO/CFO/TREASURER) COULD BE PRESSURED TO MAKE BIASED DECISIONS IN MANAGING CONFLICTS INVOLVING THE CEO OR PRESIDENT. AS TO RESTRICTIONS IMPOSED: THE INSTITUTE WILL EMPLOY THE MECHANISM THAT IS THE BEST FIT WITH THE FACTS AND CIRCUMSTANCES OF ANY IDENTIFIED CONFLICT OF INTEREST. METHODS TO MANAGE POTENTIAL CONFLICTS/ENFORECEMENT MECHANISM: REVIEWING MANAGEMENT IS RESPONSIBLE FOR MANAGING, REDUCING, OR ELIMINATING REAL OR POTENTIAL CONFLICTS OF INTEREST. EXAMPLES OF CONDTIONS OR RESTRICTIONS THAT MIGHT BE IMPOSED TO MANAGE, REDUCE, OR ELIMINATE CONFLICTS OF INTERESTS INCLUDE: -PUBLIC DISCLOSURE OF SIGNIFICANT FINANCIAL INTERESTS -MONITORING OF RESEARCH BY INDEPENDENT REVIEWERS -MODIFICATION OF THE RESEARCH PLAN -DISQUALIFICATION FROM PARTICIPATION IN THE PORTION OF FUNDED RESEARCH THAT COULD BE AFFECTED BY SIGNIFICANT FINANCIAL INTEREST -DIVESTITURE OF SIGNIFICANT FINANCIAL INTERESTS -SEVERENCE OF RELATIONSHIPS THAT CREATE ACTUAL OR POTENTIAL CONFLICTS -REVIEW OF COMMERCIAL SPONSORED RESEARCH AGREEMENTS FOR SCIENTIFIC MERIT BY THE PROGRAM PLANNING COMMITTEE -REMOVAL OF AN AFFECTED PARTY FROM NEGOTIATIONS WITH A COMPANY WITH HE/SHE HAS SIGNIFICANT FINANCIAL INTEREST. PROCESS USED TO DETERMINE COMPENSATION FORM 990, PART VI, LINES 15A AND 15B THERE WERE NO SALARY INCREASES DURING THE YEAR ENDED 6/30/13. THEREFORE THE PROCESS USED TO DETERMINE COMPENSATION WAS NOT COMPLETED DURING THE YEAR. THE FOLLOWING DESCRIPTION DESCRIBES THE PROCESS COMPLETED WHEN SALARIES WERE ADJUSTED LAST. COMPENSATION FOR THE CEO, THE PRESIDENT, THE EXECUTIVE VICE PRESIDENT/ CHIEF FINANCIAL OFFICER/ CHIEF ADMINISTRATIVE OFFICER, AND OTHER KEY EMPLOYEES IS ESTABLISHED ACCORDING TO INSTITUTE POLICIES WHICH ARE DESIGNED TO MEET THE IRS STANDARD FOR "REBUTTABLE PRESUMPTION OF REASONABLENESS". THE COMPENSATION COMMITTEE OF THE BOARD OF TRUSTEES, CONSISTING OF THREE INDEPENDENT TRUSTEES , REVIEWS COMPARABILITY DATA PROVIDED BY AN INDEPENDENT EXTERNAL CONSULTANT THAT INCORPORATES AND EVALUATES INSTITUTE DATA AND THAT OF COMPARABLE ORGANIZATIONS AND MARKETS FROM WHICH THE INSTITUTE DRAWS ITS EXECUTIVE TALENT . UTILIZING THIS STUDY WHICH INCLUDES THE CONSULTANT'S OPINION ON THE "REASONABLENESS" OF THE PROPOSED COMPENSATION, THE COMPENSATION COMMITTEE, WHICH TYPICALLY SEEKS TO ESTABLISH COMPENSATION BETWEEN THE 50TH AND THE 75TH PERCENTILE OF THE COMPARABILITY DATA, MAKES A DETERMINATION WHETHER THE PROPOSED COMPENSATION IS REASONABLE. IF THE PROPOSAL IS DEEMED TO BE REASONABLE, THE COMPENSATION COMMITTEE CONTEMPORANEOUSLY AND ADEQUATELY DOCUMENTS THE BASIS FOR ITS DETERMINATION AND THEN MAKES A RECOMMENDATION TO THE EXECUTIVE COMMITTEE. IF THE PROPOSAL IS DEEMED REASONABLE BY THE EXECUTIVE COMMITTEE, THE COMPENSATION COMMITTEE PRESENTS ITS FINDINGS AND RECOMMENDATIONS TO THE BOARD OF TRUSTEES IN EXECUTIVE SESSION. IF APPROVED BY THE BOARD OF TRUSTEES, THE PROPOSAL IS THEN IMPLEMENTED AND SUCH DOCUMENTATION IS KEPT IN THE WRITTEN OR ELECTRONIC RECORDS OF THE BOARD OF TRUSTEES. AVAIL OF GOV DOCS, CONFLICT OF INTEREST POLICY & FIN STMTS TO GEN PUBLIC FORM 990, PART VI, Line 19 DOCUMENTS ARE AVAILABLE UPON REQUEST. OTHER CHANGES IN NET ASSETS OR FUND BALANCES FORM 990, PART XI, LINE 5 UNREALIZED GAIN (LOSS) ON INTEREST RATE SWAP: $1,306,042 ROUNDING: $ 312 ----------- $1,306,354