CPRIT Foundation 2010-2011 Annual Report

F O U N D A T I O N

Making an ImpactANNUAL REPORT

2010-2011

The Cancer Prevention and Research Institute of Texas Foundation enhances the efforts and expands the reach of the Cancer Prevention and Research Institute of Texas, the state agency dedicated to forging breakthroughs in

cancer prevention and cures for all Texans.

The on-going efforts of the CPRIT Foundation include:

• Improving the health of all Texans by working with business and community leaders to create and promote cancer prevention programs;

• Bringing more resources to Texas for cancer efforts by leveraging relationships with Federal agencies and private foundations;

• Supplementing CPRIT’s efforts to attract and employ high caliber executives to effectively distribute $300 million in grants annually;

• Convening an annual scientific exchange of innovative and game-changing ideas in cancer research and prevention;

• Ensuring public awareness for all Texans regarding CPRIT’s investments in research and prevention;

• Building and creating a platform for the bioscience industry by increasing investments, competition and economic development in Texas; and

• Supporting an unprecedented collaborative initiative among researchers, hospitals and academia committed to improving cancer care for Texans by rapidly translating scientific advances from the laboratory to the patient through statewide clinical trials.

The CPRIT Foundation is a nonprofit 501(c)(3) organization, therefore investments are tax deductible as a charitable contribution.

OUR MISSION

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MESSAGE FROM THE CHAIRMAN & VICE CHAIRMAN

MESSAGE FROM THE EXECUTIVE DIRECTOR

BREAKTHROUGH ROUNDTABLE MEETING

ANNUAL DINNER

SIGNATURE EVENTS

INNOVATIONS IN CANCER PREVENTION AND RESEARCH CONFERENCE

FINANCIALS

CPRIT FOUNDATION BOARD OF DIRECTORS

Table of Contents

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Dear Friends,

We have come a long way in just two years. Originally, we envisioned a simple foundation to financially support the Cancer Prevention and Research Institute of Texas. Since then, the CPRIT Foundation has launched a major conference, positioned the institute for national visibility, and helped make the possibility of finding a cure for cancer, in Texas and within our lifetime, a reality.

The CPRIT Foundation not only expanded the capabilities of the institute, but became essential to the development of effective events, communication, and grant making efforts. The Foundation’s support enriches these efforts, and gives them the most potential for growth and success. To us, it is clear that we must continue to work together and collaborate if CPRIT is to fulfill its mission.

As we see the effect that limited funding and budget cuts have on organizations in Texas and across the country, we are reminded of one of the main roles we play in ensuring the success of CPRIT - to provide additional support that would otherwise be unavailable or restricted. In order to do this, we must build on the relationships we have established with industry leaders, elected officials, and advocates from across the state, and continue to cultivate new relationships in those areas and beyond.

In addition, we must take seriously the feedback we have received thus far, and think innovatively about translating our successes into further growth. The Breakthrough Roundtable Meeting, Annual Dinner, and CPRIT Conference have paved the way for CPRIT to make a name for itself on a national stage, so what else can we be doing to help CPRIT achieve its full potential? We are excited and ready to start exploring many possibilities in the year ahead.

We are so very thankful for your support and involvement with the CPRIT Foundation. What we have achieved in the past year is a direct result of our collaborative efforts—and it would not have been possible without you, our partner.

As we prepare for the CPRIT Foundation’s third year, we hope you will share in our vision for the future. We urge you to collaborate with us on new ideas and become engaged on specific projects. Most importantly, we hope you will share in our excitement for the opportunities ahead.

Gratefully,

James M. Mansour Joseph S. Bailes, M.D.Chairman Vice Chairman

Message from the Chairman & Vice Chairman

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Greetings,

I am so proud of the accomplishments the CPRIT Foundation has made in its young life thus far. Our team has worked day in and day out with CPRIT to maximize the unique potential of its mission in Texas. I am humbled by what we have achieved in this short period of time, but impassioned to further the important work we have started.

We have established a series of successful events, met with numerous community leaders and implemented an effective communications plan, raising nearly $2 million for the Foundation. Through these efforts, the Foundation has built a loyal base of supporters, provided vital financial assistance, and extended CPRIT’s message across the state. These accomplishments have primed CPRIT for the national stage, and will lead us to many more exciting opportunities ahead.

The significant progress made this year was made possible by the successful collaboration between CPRIT Foundation and other members of the cancer community. We received an overwhelming response from advocates wanting to partner with the CPRIT Foundation for Cancer Awareness Day at the Capitol, we increased our visibility with legislators and staff as we supported CPRIT at relevant hearings and meetings about key legislation for funding and privacy rights, and we broadened our reach with individual donors through additional regional events as well as relationships within the industry through meetings at the ASCO Annual Meeting. Through these relationships, we can propel the CPRIT Foundation into several new channels for growth.

Looking ahead, our team is already moving forward to cultivate these potential growth opportunities. In the coming year, we will work to build upon our successes and revitalize our outreach strategy. Targeted regional events, partnerships with like-minded organizations, and grassroots communications are examples of the new connections and opportunities we hope to create. Extending our reach throughout Texas and beyond is the key to our future success, and I am confident that together we can achieve that goal.

I thank each of you for your support. What the CPRIT Foundation has accomplished over the past year is a result of your steadfast commitment to CPRIT and its mission. Moving forward, I hope we can continue our collaboration and, most importantly, help make the possibility of finding a cure for cancer a reality.

Respectfully,

Jennifer StevensExecutive Director

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Message from the Executive Director

The second Breakthrough Roundtable Meeting solidified the CPRIT Foundation’s reputation for bringing the best minds together in Texas to discuss leading topics in oncology and opportunities to advance efforts in the fight against cancer. On November 16, 2010, 15 cancer specialists joined CPRIT leadership at the Four Seasons Hotel in Austin to discuss the current state - and future hope - for clinical trials.

The two-hour discussion focused primarily on CPRIT’s potential solution to the problem – the Statewide Clinical Trials Network of Texas, also known as CTNeT. Established in 2010 with a $25 million grant from CPRIT, CTNeT will enable Texas-based academic institutions and community cancer centers to come together and combine intellectual forces and patient resources. CPRIT has made this clinical trials network a top priority among others to fulfill its mandate for encouraging statewide collaboration and increasing access to care in all parts of Texas. The insights from the renowned members of the panel will help shape the structure of this promising new organization.

The topic attracted top cancer researchers, academics, physicians, industry executives and government officials from across the state as well as across the country. In a rare occasion, the meeting hosted not just two but three Nobel Laureates, including Al Gilman, M.D., Ph.D., CPRIT Chief Scientific Officer, Phil Sharp, Ph.D., Director of MIT’s Koch Cancer Institute and Chair of the CPRIT Scientific Review Committee and Harold Varmus, M.D., newly appointed director of the National Cancer Institute. A press conference was held prior to the meeting to highlight this special occurrence.

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Breakthrough Roundtable Meeting

Panelists hear from Dr. John Mendelsohn, President of MD Anderson.

CPRIT Leadership with Nobel Laureates at the press conference prior to the meeting.

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At a time when funding for research is becoming more limited, Dr. Varmus’s remarks accentuated the unique and important role CPRIT is able to play in the cancer community; “as somebody sitting on a substantial budget that is shrinking as we watch, it is envy-making to see people making investments in new opportunities.”

Each panelist shared their various perspectives on how Texas can learn from the shortcomings of the current clinical trials system. By the end of the meeting they all agreed that, if done correctly, an effective and efficient system can be established from the start, and that Texas could become the model for the future of clinical trials.

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Roundtable PanelistsJoseph S. Bailes, M.D.

Jimmy MansourBill Gimson

Becky Garcia, Ph.D.Jerry Cobbs

Alfred G. Gilman, M.D.James L. Abbruzzese, M.D.Clara D. Bloomfield, M.D.

Otis Brawley, M.D.Richard B. Gaynor, M.D.

Martine George, M.D., M.Sc.Julie Gerberding, M.D.Richard Gibbs, Ph.D.

Beth Hellerstedt, M.D.John Hohneker, M.D.

John Mendelsohn, M.D.Terence Rugg, M.D.

Phillip A. Sharp, Ph.D.Ian Thompson, M.D.

Harold E. Varmus, M.D.Robert C. Young, M.D.

Dr. Clara D. Bloomfield, Distinguished Professor at the Ohio State University, Dr. Phil Sharp, CPRIT Review Committee Chairman, and Dr. Julie Gerberding, President of

Merck Vaccines, discuss CTNeT at the Roundtable Meeting.

Annual Dinner

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The CPRIT Foundation’s Annual Dinner is an opportunity to celebrate CPRIT’s successes and show our appreciation for our partners. Directly following the Breakthrough Roundtable Meeting on November 16, 2010, almost 300 CPRIT and CPRIT Foundation supporters gathered in the Four Seasons Hotel ballroom. The annual event and conference raised nearly $700,000 for the CPRIT Foundation, almost doubling the income from the first year.

At the 2009 event, attendees of the Annual Dinner were told the vision and uniqueness of CPRIT by the passionate leadership that was taking the helm of the organization. This year, old and new supporters were proud and excited to hear how quickly CPRIT was able to successfully fulfill its initial goals to fund innovative projects and encourage collaboration across the state.

Remarks were delivered by Chairman Jimmy Mansour, CPRIT Executive Director Bill Gimson, and CPRIT Foundation Executive Director Jennifer Stevens, who also served as the emcee for the evening. The program also featured a few very special guests. Harold Varmus, M.D., Nobel Laureate and new Director of the National Cancer Institute, shared his view from a federal-level perspective of the special opportunity CPRIT has to impact cancer research and prevention, not only in Texas, but across the country. Larry Norton, M.D., breast cancer specialist and Deputy Physician-in-Chief at Memorial Sloan-Kettering Cancer Center, gave a keynote address that charmed and enlightened the entire audience about the future of cancer research.

Dee Kelly and Executive Director Jennifer Stevens surprise Chairman Mansour with a second Champion Award for the evening.

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As tradition now heeds, the CPRIT Foundation Champion Award is presented at the Annual Dinner. This award is bestowed to those who go above and beyond the call of duty to promote the CPRIT mission. The 2010 recipient, Peter O’Donnell, Jr., well-known Dallas investor and philanthropist, has always been a champion for efforts to enhance education and research efforts. Specifically regarding CPRIT, he has played a significant part since the organization’s creation by helping establish the groundwork for continued success through the hiring of qualified and capable leadership and upholding a high standard of integrity. The genuine pride exuded in his public acceptance remarks touched the hearts of all, as many know Mr. O’Donnell’s contributions are typically made anonymously.

Following Mr. O’Donnell’s award presentation, the first recipient of the award in 2009, Mr. Dee Kelly of Fort Worth, came to the stage. As a surprise to all in the room, he presented an unexpected second Champion award to Chairman Jimmy Mansour. Chairman Mansour has been a driving force behind CPRIT and the CPRIT Foundation since inception, diligently guiding both organizations in the direction toward progress and victory. He received a standing ovation from the room.

The CPRIT Foundation is grateful for both Mr. O’Donnell and Chairman Mansour’s passion, expertise, and countless hours of service as warriors in the fight against cancer.

“With a partner like [CPRIT], we could do no less than our very best, we had to

reach higher and do all that we can

today knowing that the work

done by CPRIT is taking care of the

tomorrows.”

-Dorothy Gibbons, CPRIT grant recipient and The

Rose CEO and Co-Founder

Peter O’Donnell, Jr. speaks about his passion and dedication to CPRIT.

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Signature Events

the state set out for the State Capitol to remind elected officials of CPRIT’s critical impact in Texas and the importance of approving the full amount as constitutionally mandated.

The inaugural Cancer Awareness Day commenced with a capitol press event led by Lt. Governor David Dewhurst and Senator Jane Nelson, with Representative Jim Keffer and Lance Armstrong also on hand to share remarks. Other legislative supporters in the room included Senator Kirk Watson, Representative Geanie Morrison, and Representative Myra Crownover. In addition to CPRIT leadership and cancer advocates, many Texas Medical Association members participating in TMA’s First Tuesday advocacy efforts also attended, including TMA President Susan Bailey, M.D.

Immediately following the press conference, representatives from various cancer-related organizations joined together in teams to walk the halls of the capitol and build awareness of CPRIT’s investments in research, prevention and commercialization. The passionate volunteers dedicated their day to visit capitol offices sharing the facts about how CPRIT is helping Texas lead the way in cancer advancements and is also providing a significant return on investment to Texas.

With some CPRIT-related legislation still pending, these volunteers also educated each elected official about the approaching legislative bills. Senate Bill 73, finance legislation that would not only help reduce the costs of CPRIT’s bond issuance but also increase its return, was actually passed on Cancer Awareness Day. “The Institute has created more than 11,000 jobs with more than an $850 million impact on Texas businesses, but we wanted to do more. Senate Bill 73 will allow the Institute to earn interest on money that is pending payment,” said Senator Jane Nelson (R-Lewisville).

This first event at the capitol was a resounding success and it would not have happened without the passion and dedication of all of the volunteers who participated from the American Cancer Society, Susan G. Komen, LIVESTRONG, Leukemia & Lymphoma Society and the Texas Medical Association.

Cancer Awareness Day at the Capitol

Although CPRIT was created as part of a constitutional amendment, during each legislative session the appropriation of the bonds issued for grant funding must be reapproved in order to continue funding in the next biennium. In early April 2011, the CPRIT Foundation and many cancer advocates from across

Lieutenant Governor, David Dewhurst expresses pride in CPRIT at the capitol press conference.

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Texas is the first state to create an organization like CPRIT, and it is the first to have the potential to significantly shape the fight against cancer within our borders and beyond. As a true leader, CPRIT’s objectives and aspirations go beyond the awarding of grants. All Texans need to be aware of its mission, achievements and overall impact and the CPRIT Foundation plays a vital role to help communicate the pioneering work of CPRIT.

Regional Events

In the 2010-2011 fiscal year, the CPRIT Foundation held a regional event in Austin and also traveled to Corpus Christi, El Paso, Dallas, Houston, and Lubbock. Each event was led by varying CPRIT Foundation board members or members of CPRIT’s leadership team, all of whom shared information about the work being done in Texas to combat cancer. As a result, these events generated new supporters of CPRIT’s mission and helped increase the CPRIT Foundation’s donor base.

Over the years, the CPRIT Foundation has been engaging local community leaders through intimate events held across the state. The goals of these regional events are to ensure our Texas communities get involved in our efforts to save lives and, ultimately, eliminate this devastating disease. The events range in size, anywhere from 20 to 50 guests, and the location is often the generous donation of one’s home made by a CPRIT supporter.

Chairman Jimmy Mansour and Executive Director Bill Gimson discuss CPRIT efforts with Jodey Arrington, Vice Chancellor of Research,

Commercialization and Federal Relations at Texas Tech University.

Chairman Jimmy Mansour speaks to a group of CPRIT supporters at a regional event in Austin, Texas.

The inaugural Innovations in Cancer Prevention and Research Conference was a success as soon as the 850 attendees walked in the doors of the Austin Convention Center. With a goal of 500, the actual attendance well exceeded expectations.

Thanks to the help of our program committees, the conference program served up two and a half days of thought-provoking content with outstanding special guest speakers. The keynote address, given by Dr. Phil Sharp of MIT’s Koch Institute for Integrative Cancer Research, shared innovation in the area of microRNA research. Topics ranged from the science of genetic treatments to the importance of improved prevention, and from drug discovery methods to survivorship issues. The interactive Q&A after each session also generated great discussions.

The last day of the conference was a two-hour workshop devoted to the CPRIT grant approval process. Sharing advice and best practices to new and returning applicants were the CPRIT executive team members, as well as some of the distinguished review committee members.

Throughout the conference, attendees could view close to 400 scientific posters. The selected researchers were also available for interactive Q&A during a reception on Wednesday evening. Many of the posters were presented by recipients of CPRIT grant money in 2010’s first round of funding.

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Annual Conference

The Honorable Susan Combs, Texas Comptroller, kicks off the

inaugural CPRIT Conference.

Inaugural Innovations in Cancer Prevention and Research Conference

November 17 - 19, 2010

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Since the review process has such a high standard for selection, to be awarded a CPRIT grant is a true sign of innovation and advancement in cancer eradication. As a way to recognize and thank the hard work of the 2010 grantees, CPRIT held the first Recipient Honors Dinner. The event was generously hosted by the UT System Chancellor, Francsico Cigarroa, at his Austin residence, the Bauer House. The informal and relaxed evening was an opportunity for this unique fraternity of innovators to network with each other, as well as with CPRIT leadership.

The inaugural conference proved to be a successful event for CPRIT. As we continue to look for opportunities to spread the word about CPRIT’s valuable work, we will also strive to expand and advance the conference every year.

“It is such an honor to be in the presence of some of the world’s brightest minds in the fight against cancer, generous donors to the effort to fight this deadly disease, and courageous men and women who have fought it and survived it. They are our

heroes, and our inspiration in the cause to combat it and defeat it.”

-Jimmy Mansour, CPRIT Foundation Chairman

The CPRIT Executive Team offers insight into the CPRIT peer review process.

Tom P. Sellers, President of NCCS, and Lance Armstong speak on a panel about survivorship.

Dr. Al Gilman introduces Dr. Phil Sharp for his keynote address.

Salary Supplements $609,000

Event Management $324,505

Admin/Professional Fees $213,659

Development $9,578

Peer Review Meetings $14,605

Public Affairs $60,000 Strategic Communications

$2,728.96

TOTAL EXPENSES$1,234,075.51

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Financials

*CPRIT Foundation changed from cash to accrual based reporting on January 1, 2011.

Financial Statements for the period from 9/1/10 - 8/31/11

Statement of Financial Position 2011

ASSETS Checking/Savings $ 963,755.12Total Assets $ 963,755.12

LIABILITIES Accounts Payable $ 1,188.24Unearned Revenue $ 62,555.00 Total Liabilities $ 63,743.24

EQUITYUnrestricted Net Assets $ 316,403.54Temp. Restricted Net Assets $ 583,608.34Total Equity $ 900,011.88TOTAL EQUITY & LIABILITIES $ 963,755.12

Statement of Activities 2011Operating Revenues $ 1,196,146.38 Expenses $ 1,234,075.51Interest Income $ 2,926.13 Decrease in Net Assets $ (35,003.00) Net Assets at Start of Year $ 935,014.88NET ASSETS AT END OF YEAR $ 900,011.88

TOTAL REVENUES$1,199,072.51

Restricted Income $500,000

Donations & Event Income $509,183

In-Kind Contributions $6,869

Conference Registration Income $180,095

Interest $2,926

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CPRIT Foundation Board of Directors

Jennifer Stevens, Executive DirectorMs. Stevens is president and owner of JHL Company, a full-service public affairs and stakeholder engagement consultancy. She has more than 15 years of experience working in government and public affairs. Mrs. Stevens has been the Executive Director of the CPRIT Foundation since 2009.

Barbara Canales Ms. Canales is the president of Canales Exploration LLC, an oil and gas exploration company she founded in 2004 that is involved with natural gas development in South Texas. In honor of her daughter who is a cancer survivor, Ms. Canales founded the Ready or Not Foundation, a charitable organization that raises research dollars for better treatments and a cure for pediatric brain cancer.

Cindy Brinker SimmonsMs. Simmons serves as president of the award-winning, full-service strategic communications company Levenson & Brinker Public Relations. In 1980, she founded Wipe Out Kids’ Cancer, one of Dallas’s largest pediatric cancer organizations, in memory of her mother, the late great tennis champion Maureen “Little Mo” Connolly Brinker, who died of cancer in 1969 at the age of 34.

Phil Wilson, SecretaryMr. Wilson is Senior Vice President of Public Affairs for Luminant, a competitive power generation subsidiary of Energy Future Holdings Corp. Mr. Wilson also has a long, distinguished career in Texas government, serving in key advisory roles for three statewide elected officials. Mr. Wilson is a two-time brain cancer survivor.

Joseph S. Bailes, M.D., Vice ChairmanDr. Bailes is a medical oncologist with substantial experience in legislation, public policy and advocacy, as well as the business aspects of the practice of oncology. Previously, Dr. Bailes has served in various executive leadership capacities for the American Society of Clinical Oncology (ASCO), including terms as President and Chief Executive Officer, and Chair of the ASCO Government Relations Council.

James M. Mansour, Founding ChairmanMr. Mansour also chairs the CPRIT Oversight Committee and works closely with CPRIT’s executive staff to implement CPRIT’s strategic vision. Mr. Mansour brings to the Oversight Committee proven entrepreneurial leadership, having started several telecommunications companies, including National Telecommunications of Austin, National Telecommunications of Florida, GroupTel, and Clearwire Technologies.

F O U N D A T I O N

P.O. BOX 12631 AUSTIN, TEXAS 78711 (512) 236-1001 WWW.CPRITFOUNDATION.ORG