PUTTING. inventiveness TO USE BIOMEDICAL RESEARCH FOUNDATION 2005 ANNUAL REPORT
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1 inventiveness PUTTING TO USE BIOMEDICAL RESEARCH FOUNDATION 2005 ANNUAL REPORT
2 COVER ART CAPTAIN HENRY MILLER SHREVE CLEARING THE RED RIVER LOG JAM Courtesy of The R.W. Norton Art Gallery, Shreveport, La. CAPTAIN HENRY MILLER SHREVE, the father of Shreveport, Louisiana, was recently recognized in Sir Harold Evans acclaimed book They Made America as one of the top seventy innovators in America over the past two hundred years. One of Shreve s innovations was the snag boat, which battered and sawed through the tangled rafts endangering navigation on the great river systems. Like all successful innovators, he took risks, developed an idea, and turned that idea into a commercial reality with enormous impact. Lloyd Hawthorne s painting portrays him clearing the Great Raft on the Red River,
3 F OREWORD innovation it is more than invention; it is putting inventiveness to practical use. Without innovation, understanding and invention are incomplete inert, inactive, and therefore ineffectual. According to Harold Evans, author of They Made America, innovation empowered America s first adventurers. Creating an environment that encourages innovation is vital to continuing to lead in today s increasingly competitive 21st century economy. The Biomedical Research Foundation seeks to put inventiveness to use. We nurture the process of converting ideas to products. The process is complex. Thomas Edison, America s foremost inventor, once said Patents are but the first steps in the scheme of things before the long laborious trouble of working them out and producing apparatus which is commercial. In his book, Evans writes of 70 of America s greatest innovators who sought universal applications for inventions. These people include Thomas Edison, Benjamin Franklin, The Wright Brothers, and a favorite to those of us in northwest Louisiana, the master of the Mississippi, Henry Miller Shreve. These thinkers used innovation to translate the insight of invention into practical application. They developed something people could use. Henry Miller Shreve refused to believe those who told him that the Red River could not be reopened to navigation. When the Great Raft of seemingly impenetrable logs, stumps, decaying wood and brush blocked all navigation on Louisiana s Red River and impeded the growth of the West, Shreve built a snag boat and cleared the Red so it could run freely to the Mississippi. No canoe had penetrated that waterway for 50 years until Shreve innovated his way through it. Like all successful innovators, he took risks and wrapped his hands around an idea that he turned into a commercial reality with enormous impact. At The Foundation, we are working to clear a log jam of a different sort - making way for technology and business innovation. People such as Dr. Nick Goeders, Dr. James Patterson, Dr. John Dankert and local high school students Joshua McCartney and Jessica Le are our pioneers. They and others are collaborating with the Foundation to develop a technology-trained workforce and perform the entrepreneurial roles of raising the money, providing the right facilities, arranging the legal right-of-way and cultivating the markets to put their knowledge to use. The Biomedical Research Foundation of Northwest Louisiana and its collaborators are fostering the innovation that will put inventiveness to use for our community.
4 M ISSION: To pioneer a knowledge-based regional economy by cultivating and attracting life science enterprises and related technologies. We will promote and develop Private and public support and collaboration for a knowledgebased economic development strategy; InterTech Science Park as a suitable physical environment for life science enterprises and related technologies; Capacities and accomplishments, in collaboration with and support of LSU Health Sciences Center in Shreveport; Human resources and the regional knowledge base via K-12, higher education and technical/professional training programs; Support and resources for technology and business innovation, with people, research, facilities, and funding. THOMAS E. (TEM) MCELROY 2006 Chairman of the Board
5 F ROM THE C HAIRMAN AND P RESIDENT As the Biomedical Research Foundation moves into its 21st year and we look back on our efforts to create a knowledge-based regional economy, we find it especially rewarding to be named this year s Louisiana recipient of the Southern Growth Policies Board 2006 Innovator Award. Governor Kathleen Blanco publicly honored InterTech Science Park on June 4 for being chosen from more than 200 nominees across the South as an exemplary initiative in technology and innovation. JOHN F. (JACK) SHARP President This award recognizes the Biomedical Research Foundation as a leader of innovation in Louisiana and throughout Southern Growth s 13 member states. This accomplishment would not have been possible without the continued commitment of our partners, friends and supporters of the Biomedical Research Foundation and its goal to advance innovation by cultivating and attracting life science enterprises and related technologies. The people you will read about in the pages of the 2005 Annual Report represent the creativity that it takes to harness knowledge and use it as a springboard for economic development. Southwood High School students Joshua McCartney and Jessica Le, LSU Health Sciences Center in Shreveport scientists Drs. James Patterson and Nicholas Goeders, and SteriFx Co-Founder and Chief Scientific Officer, Dr. John Dankert, are just a few of a new breed of pioneers. Together, these individuals, the Innovator Award and the 20 years of ongoing work by the Foundation illustrate the progress we have made in developing the right environment for innovation to flourish. The 2005 achievements detailed in the annual report demonstrate the belief of Benjamin Franklin, one of the great innovators, that an investment in knowledge always pays the best interest. The Biomedical Research Foundation is committed to creating a culture of innovation that will give researchers the power to develop understanding and invention into practical application. We may not have all of the resources of a large metropolitan area such as Boston or San Francisco, but the Southern Growth Policies Board 2006 Innovator Award is an indication that we are on the right path and are using the resources we do have to turn ideas into innovation.
6 Inventiveness is not limited to those of a certain age, social class or economic level. It is a characteristic defined in individuals such as Benjamin Franklin by a willingness to dare to take risks. Innovators don t necessarily possess great secrets, and most don t come from wealth or connections. The innovator s magic is his or her determination to make a difference, to pursue knowledge with an eye toward turning that knowledge into something useful. In its mission to promote and develop human resources and the regional knowledge base via K-12, higher education and technical/professional training programs, the Foundation has continued to support and encourage science and technology education programs including the Math, Science and Technology K-12 initiative (MST), the Environmental and Spatial Technology (EAST) program, the Science and Medicine Academic Research Training (SMART) program, the Biotechnology Magnet Academy and the Consortium for Education, Research and Technology of North Louisiana (CERT). Through these programs, we are encouraging innovation and invigorating entrepreneurship and civic responsibility. We are committed to empowering the innovators of tomorrow with knowledge that has the potential to bring about economic impact Activities Fostering Innovation Through EDUCATION Continued ongoing Foundation support of the Math, Science and Technology K-12 (MST) initiative in Caddo Parish Public Schools, by taking an active role in the development of the Biotechnology Magnet Academy set to launch in Fall 2006 at Southwood High School. Assisted with fundraising and building industry partnerships for the For Inspiration and Recognition of Science and Technology (FIRST) robotics program at Southwood High School and the FIRST LEGO team for Keithville Elementary/Middle School. The LEGO program started in August, 2004, followed by the FIRST program at Southwood in August The Foundation also continued its role as partner in the MST Initiative by raising private funds for the Environmental and Spatial Technology (EAST) program at Southwood High School. Sponsored the SMART (Science and Medicine Academic Research Training) program for high school seniors who participated in a number of national and international competitions. One of the most prestigious of these is the Siemens-Westinghouse Competition in Math, Science and Technology. Seven of the 300 semi-finalists selected from 1,600 applicants nationwide were from Louisiana. Of these seven, five were participants in the SMART program. For the past eight years, the Foundation has supported the SMART program, which teams ten local high school seniors with LSU Health Sciences Center in Shreveport faculty to work in a medical research laboratory for a year. Provided support for the expansion of the MST program at Linwood Middle School and Woodlawn High School in Shreveport. With this expansion, the MST program now reaches 88 teachers and 4,500 students in grades 4 through 12 in five Caddo Parish schools. Continued support of the Biotechnology Entrepreneurship Ph.D. program at LSU Health Sciences Center in Shreveport by providing funds to host nationally renowned lecturers and experts in biotechnology and venture capital industries.
7 THE DOORS OF WISDOM ARE NEVER SHUT Benjamin Franklin 5 Jessica Le and Joshua McCartney, seniors in the Southwood High School Environmental and Spatial Technology program (EAST), are putting to use the inventiveness that the EAST program has nurtured. Joshua won a $26,000 personal award and a $200,000 software package for Southwood during an annual conference showcasing work from EAST labs throughout the country. Jessica designed the Caddo Parish School Board s transportation department website complete with bus stops and school bus safety rules.
8 6 THE SCIENCE OF TODAY IS THE TECHNOLOGY OF TOMORROW. Edward Teller, Co-Founder, Lawrence Livermore National Laboratory James Patterson, M.D., Ph. D., Assistant Professor of Psychiatry at LSU Health Sciences Center in Shreveport and Director of PET Neuroimaging at the BRF s PET Imaging Center, has used his knowledge of PET technology to develop a software program that may one day identify early indications of Alzheimer s Disease.
9 There are thousands of good ideas sitting on bookshelves, but without an effort to make use of these ideas to apply that knowledge they bring little true value to the public, said James Patterson, M.D., Ph.D., LSU Health Sciences Center in Shreveport. With support from the Biomedical Research Foundation and a grant from The Community Foundation of Shreveport-Bossier/The Kinsey Family Fund, Patterson is working to move his good idea off the shelf. In its mission to promote and develop resources for technology and business innovation with people, research, facilities and funding, the Foundation supports and encourages individual efforts at technology transfer such as those being pursued by Dr. Patterson. Patterson has much in common with the great innovators of history such as Thomas Edison. He is committed to using his knowledge to compel people to action and his inventiveness to improve medicine for all of humankind. At present, little has been discovered that can stop or slow the disease of Alzheimer s. According to Dr. Patterson, however, there are over 100 drugs currently in development that could prove successful at treating this debilitating disease. When one of these drugs does prove successful, software designed by Patterson will help physicians using positron emission tomography (PET) detect early indications of Alzheimer s and allow patients to begin effective treatment before the disease progresses. Patterson will have cleared a barrier and opened up hope to thousands of people. He will have used innovation to design a practical application for his knowledge Activities Fostering Innovation Through COLLABORATION Worked hand in hand with GE Healthcare Biosciences to plan manufacturing and testing of new PET radiopharmaceuticals for diagnosing and managing Alzheimer s disease, and helping diagnose and stage cancer patients. Provided $3M in free scans for indigent patients from all parts of Louisiana. Saved over $1M per year by providing PET imaging services to LSU Health Sciences Center in Shreveport, CHRISTUS Schumpert and Willis-Knighton Health Systems, thus avoiding operational expenses associated with infrastructure duplication. Scanned 3,165 PET patients, ranking our sites among the busiest in the world along with M.D. Anderson in Houston and Memorial Sloan Kettering in New York. Increased our radiochemistry capabilities dramatically, doubling to ten the number of PET radiopharmaceuticals available to researchers at LSU Health Sciences Center in Shreveport. Created six Board Advisory Committees with 60 members from the community to assist the Foundation with planning and outreach. The six committees are: Education and Knowledge Resources, Healthcare Relations, Finance and Administration, Resource Development and Communications, InterTech Science Park and Advanced Imaging. Redesigned and updated the PET Imaging Center website along with the Foundation websites and the InterTech Science Park site. Locations: and 7
10 John Dankert agrees that we must be entrepreneurs of action if we hope to produce something of value. We must take our intellectual property, give it vision and then build a team to test, finance, package and market it. Dankert knows that the researchers, investors, businessmen and facilities the collaborative team and infrastructure that the Biomedical Research Foundation has spent 20 years building will allow many good ideas to come to fruition. In its mission to promote and develop InterTech Science Park as a suitable physical environment for life science enterprises and related technologies, the Foundation builds teams such as those that have helped Dr. John Dankert and SteriFx become one of the first success stories of the InterTech Science Park. The non-toxic solutions that SteriFx produces make food safer, aid the healing of wounds, and support Homeland Defense with products that promote decontamination after exposure to hazardous substances. SteriFx contributes to InterTech s success by taking advantage of the infrastructure and resources that assist companies with commercialization, thereby creating long-term wealth and increased employment opportunities in the local economy Activities Fostering Innovation Through FACILITIES Completed construction and opened BioSpace1 Life Sciences Center in October. The 60,000 sq. ft. facility provides wet lab space for life science companies, as well as built-to-suit space to recruit a range of technology-based companies in information technology, communications, advanced manufacturing, environmental and energy industries. Tenants include Red River Pharma Manufacturing, Louisiana Ventures, VC Experts, and Metric Health. Graduated SteriFx, Inc., an InterTech company, from its location in the InterTech Business Innovation Center to a larger facility in the former Barrett Oil Building on Dalzell Street. The InterTech Science Park currently has 12 companies employing a total of 80 individuals, in addition to the Biomedical Research Foundation s 47 employees. Remarketed the Biomanufacturing Facility in the InterTech Science Park nationally and internationally at conferences and with brokers. Received an $86,000 EPA Brownfields grant for environmental cleanup of an InterTech Science Park property.
11 DISCOVERYCONSISTS OF SEEINGWHAT EVERYBODYHAS SEEN AND THINKING WHAT NOBODY HAS THOUGHT. Albert Szent-Gyoergyi, 1937 Nobel laureate in Medicine 9 John R. Dankert, Ph.D., is the Chief Scientific Officer for SteriFx, Inc., located in the InterTech Science Park. SteriFx is a specialty chemical company producing antimicrobial solutions for food safety, consumer, healthcare and defense markets. The BRF has assisted in many phases of the growth of this company which markets its patented formulation of a safe and revolutionary process for pathogen elimination on food products, equipment, wounds and skin.
12 10 THE VALUE OF AN IDEA LIES IN THE USING OF IT. Thomas Edison Nick Goeders, Ph.D., is founder and chief scientific advisor of Embera Neurotherapeutics, Inc., a company that targets addictions and central nervous system disorders. Dr. Goeders has developed a medication that appears to stop the craving mechanism for various addictive substances such as cocaine.
13 Novelty alone doesn t make an idea innovative. The novelty of an idea is worth little to men like Dr. Nick Goeders if it doesn t also promise to deliver positive change on some level. Dr. Goeders, founder and chief scientific advisor at Embera Neurotherapeutics and Professor and Head of the Department of Pharmacology, Toxicology and Neuroscience at LSU Health Sciences Center in Shreveport, is translating his research to help those addicted to cocaine and methamphetamine make positive changes in their lives. In its mission to promote and develop capacities and accomplishments, in collaboration with and support of LSU Health Sciences Center in Shreveport, the Foundation is helping get businesses such as Embera off the ground and creating a favorable environment for life sciences to improve quality of life as well as generate economic development. Innovation pushes invention from theory to application. The Foundation is committed to establishing an environment that makes this transition possible. As we attract other biotech companies to this area, fostering innovation will remain the critical component for putting inventiveness to use in our community Activities Fostering Innovation Through RESEARCH Awarded $305,000 from The Kresge Foundation Science Initiative to provide equipment and initiate an equipment endowment for the LSU Health Sciences Center in Shreveport Research Core Facility. Provided $537,433 to support basic research by faculty at LSU Health Sciences Center in Shreveport. These funds bridge funding gaps, stimulate new exploratory research, and support the Research Core Facility. Provided $274,615 toward equipment for the Research Core Facility and awarded $64,500 in grants for research utilizing PET imaging. In addition, the Foundation paid $250,000 as the final installment of a $2 million pledge towards neuroscience research at LSU Health Sciences Center in Shreveport. Advanced innovative research by LSU Health Sciences Center in Shreveport scientists using PET to focus on such diseases as Parkinson s, Alzheimer s, and head and neck cancer. 11
14 Financial Report C ONSOLIDATED S TATEMENTS OF F INANCIAL P OSITION D ECEMBER 31, 2005 AND 2004 The consolidated financial statements of the Foundation were audited by Postlethwaite & Netterville, APAC. The following is selected financial information: 18 ASSETS Cash and Cash Equivalents $ 1,618,167 $ 1,719,915 Receivables, unreimbursed expenses and prepaid expenses 2,578,602 2,878,624 Plant assets, net 56,519,963 53,605,952 Bond issuance costs 336, ,389 Long-term investments 4,495,899 4,339,780 TOTAL ASSETS 65,548,739 62,949,660 LIABILITIES AND NET ASSETS LIABILITIES: Accounts payable and accrued expenses 2,528,310 2,007,256 Notes payable 4,575,448 5,736,682 Revenue bonds payable 16,494,675 17,573,084 Annuities payable 7,845 16,140 TOTAL LIABILITIES 23,606,278 25,333,162 NET ASSETS: Unrestricted 39,750,823 35,389,300 Temporarily restricted 377, ,667 Permanently restricted 1,814,531 1,719,531 TOTAL NET ASSETS 41,942,461 37,616,498 TOTAL LIABILITIES AND NET ASSETS 65,548,739 $ 62,949,660 T HE F OUNDATION D OLLAR PROGRAM SERVICES FOR THE YEAR 2005 POSITRON EMISSION TOMOGRAPHY 45% SCIENCE PARK DEVELOPMENT INITIATIVES 25% SCIENTIFIC RESEARCH INITIATIVES 30% EXPENDITURES FOR THE YEAR 2005 MANAGEMENT AND GENERAL 12% FUNDRAISING 2% PROGRAM SERVICES 86%
15 Consolidated Statement of Activity Years Ended December 31, 2005 and 2004 SUPPORT AND REVENUE Philanthropic Support $ 405,324 $ 281,263 REVENUE: Rental income 3,666,082 3,739,979 Local government operating grant 1,950,000 1,514,998 Grants and contracts 5,867,666 4,924,657 Investment income 489, ,821 Positron Emission Tomography (PET) 6,518,762 5,648,457 Other income (loss) 18, ,982 Total support and revenue 18,916,603 16,969,157 EXPENSES PROGRAM SERVICES: Scientific Research Initiatives Grants to LSU Health Sciences Center in Shreveport and resources expended in support 3,729,741 3,658,046 of research projects conducted by the Foundation s own personnel, other scientists, or in collaboration with other organizations/universities. Operating expenses for research facilities in the Virginia K. Shehee Biomedical Research Institute which are leased to the Louisiana State University Health Sciences Center in Shreveport Positron Emission Tomography Operating expenses to provide diagnostic imaging services and related radio-pharmaceutical production. 5,665,021 5,420,558 Science Park Development Initiatives Resources expended to develop InterTech Science Park. 3,246,506 3,062,881 Total program services 12,641,268 12,141,485 SUPPORT SERVICES: Management and general Fundraising 1,716, ,938 1,701, ,126 Total expenses 14,590,640 14,096,862 CHANGE IN NET ASSETS 4,325,963 2,872,295 Net assets, beginning of year 37,616,498 34,744,203 NET ASSETS, END OF YEAR $ 41,942,461 $ 37,616,498 19
16 2005 OFFICERS VERNON B. CHANCE, JR. Chairman of the Board DONALD R. UPDEGRAFF Immediate Past Chairman THOMAS E. MCELROY Vice Chairman FRANCESCA BENTEN Secretary RAND FALBAUM Treasurer JOHN F. SHARP President & CEO 2005 DIRECTORS REGINALD W. ABRAMS JOHN E. ATKINS R. KEITH BERGERON MICHAEL B. BRANNAN, M.D. TOM CARLETON WILLIAM T. CAWTHORNE JOHN W. DEAN JAMES K. ELROD CAROLYN HUCKABAY JOHN MCDONALD, M.D. BONNIE MOORE CHARLES JOE PAINE, M. D. BARROW PEACOCK SANDRA C. ROERIG, PH.D. KENNETH SCHWAB, ED.D. STEPHEN F. SKRIVANOS ANN STOKES ARTHUR THOMPSON W. JUAN WATKINS, M.D. MANAGEMENT JOHN F. SHARP President & CEO JAMES D. DEAN Vice President for Finance and Administration JOHN SUNDERLAND, PH.D. Vice President PET Imaging Center DENNIS E. LOWER Vice President Planning and Development DAVID LILIEN, M.D. Medical Director PET Imaging Center JAY D. MEYERS Senior Director of Development Telephone: Web Site Address: VIRGINIA K SHEHEE Chair Emeritus J. BENNETT JOHNSTON, JR. Honorary Member
17 Non-Profit Organization U.S. Postage PAID Permit No. 947 Shreveport, LA 1505 KINGS HIGHWAY P.O. BOX SHREVEPORT, LA ADDRESS SERVICE REQUESTED
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