SCRIPPS FLORIDA FUNDING CORPORATION

ANNUAL REPORT

FOR THE YEAR ENDED SEPTEMBER 30, 2012

2012 BOARD OF DIRECTORS

DAVID J. GURY, CHAIRMAN ∙ DR. PAMELLA DANA, VICE CHAIRMAN ANDY CRAWFORD ∙ T. MICHAEL CROOK ∙ C. GERALD GOLDSMITH THOMAS G. KUNTZ ∙ RICHARD M. LUCERI, M.D. EDWARD SABIN ∙ DR. JOSEPH J. THOMAS SARA MISSELHORN, PROJECT DIRECTOR

505 S. FLAGLER DRIVE, SUITE 1003 WEST PALM BEACH, FL 33401 (561)655-9669 [email protected]

SCRIPPS FLORIDA FUNDING CORPORATION ANNUAL REPORT

For Year Ended September 30, 2012

INTRODUCTION

Florida Statute 288.955 (the “Enabling Statute”) created Scripps Florida Funding Corporation (“SFFC”) to facilitate the establishment and operation of a biomedical research institution for the purposes of enhancing education and research and promoting economic development and diversity. In addition, the Enabling Statute charged SFFC with the obligation to assure the compliance by The Scripps Research Institute (“TSRI”) with the Enabling Statute and the agreement between SFFC and TSRI (the “Operating and Funding Agreement”). The Enabling Statute provides that SFFC shall prepare or obtain certain reports, audits, and evaluations of TSRI’s compliance with the performance expectations and disbursement conditions contained in the Enabling Statute. As such, SFFC is submitting this Annual Report to the Governor, the President of the Senate, and the Speaker of the House, as required by the Enabling Statute to be submitted by December 1 of each year. This SFFC Annual Report addresses the activities and outcomes of SFFC and Scripps Florida (“SF”) for the fiscal year ended September 30, 2012 (“Fiscal 2012”). The Scripps Florida Annual Report addressed the activities and outcomes of Scripps Florida for the year ended June 30, 2012, and SFFC received the Scripps Florida Annual Report on August 28, 2012. The information in the Scripps Florida Annual Report was informally updated for this SFFC Annual Report.

The SFFC Annual Report serves to report on both the requirements and the aspirations as set forth by the Operating and Funding Agreement with Scripps and is presented in two parts: first, a summary that highlights the substantial events that have occurred during the year ended September 30, 2012; and second, an itemized report that corresponds with the applicable sections of the Enabling Statute.

Scripps Florida Funding Corporation 2 Annual Report 2012 ABOUT THE SCRIPPS FLORIDA FUNDING CORPORATION In November 2003, Governor Bush signed into law an historic piece of legislation that laid the framework for The Scripps Research Institute to expand its world-renowned scientific research and endeavors into Florida. The bill, passed by the Florida Legislature during special session, provided a one-time investment of $310 million from federal economic stimulus monies to create Scripps Florida and pay certain expenses for the first seven years, specifically salaries and equipment purchases. In June 2006, The Scripps Research Institute revised the Scripps Florida business plan and SFFC and TSRI revised the scheduled disbursements from SFFC, which expanded grant funding to ten years, or through 2014.

To oversee the investment and spending of the State’s investment in Scripps Florida, the Florida Legislature created the Scripps Florida Funding Corporation, hereto referred to as SFFC, a non-profit entity comprised of a nine-member Board of Directors and one ex-officio member. The role of SFFC was enunciated by Governor Bush, “my vision for this board is that it manages the financial portion of our partnership, but lets Scripps do what it does best – conduct biomedical research.”

SFFC Board of Directors Of the nine-member Board of Directors, three Directors are appointed by each of the Governor, House Speaker and the Senate President. Mr. David Gury serves as Chair of the Board of Directors and Dr. Pamella Dana as Vice-Chair. The full Board of Directors consists of the Chair and Vice Chair and Mr. F. Andy Crawford, Mr. T. Michael Crook, Mr. C. Gerald (Gerry) Goldsmith, Mr. Thomas G. Kuntz, Dr. Richard M. Luceri, Mr. Ed Sabin, and Dr. Joseph Thomas.

ABOUT THE SCRIPPS RESEARCH INSTITUTE The Scripps Research Institute (TSRI) is one of the world's largest independent, not-for-profit organizations focusing on research in the biomedical sciences. Over the past decades, TSRI has developed a lengthy track record of major contributions to science and health, including laying the foundation for new treatments for cancer, rheumatoid arthritis, hemophilia, and other diseases. The institute employs about 3,000 people on its campuses in La Jolla, CA, and Jupiter, FL, where its renowned scientists—including three Nobel laureates—work toward their next discoveries. The institute's graduate program, which awards PhD degrees in biology and chemistry, ranks among the top ten of its kind in the nation. For more information, see www.scripps.edu.

ABOUT SCRIPPS FLORIDA Scripps Florida, a division of the not-for-profit Scripps Research Institute, sits on 30 acres adjoining the Florida Atlantic University campus in the Town of Jupiter in Palm Beach County, Florida. 474 scientists, technicians, and administrative staff work in the 345,000 square-foot, state-of-the-art biomedical research facility which opened in March 2009. Scripps Florida focuses on basic biomedical science, drug discovery and technology development. In addition to the one-time grant from the State of Florida, Palm Beach County provided an economic package that included funding for land and construction of the current permanent facility.

Scripps Florida Funding Corporation 3 Annual Report 2012 SCRIPPS FLORIDA HIGHLIGHTS

The next subsections - Scripps Florida Institutional Milestones, Scripps Florida Philanthropic Accomplishments, Scripps Florida Faculty, and Scripps Florida Scientific Accomplishments, which includes scientific publications, grant awards, and scientific awards - summarize the highlights of the substantial Scripps Florida events that have occurred during the year ended September 30, 2012.

Scripps Florida Institutional Milestones

As of September 30, 2012, Scripps Florida employed 474 people and had received $49.5 million in research support from non-state sources. Since inception, 58 “families” of patent applications have been filed covering Scripps Florida technology, with each family containing 1 - 6 patent applications. Twenty-two patents were filed this fiscal year and three licensing agreements were executed.

Michael A. Marletta Took Office as New President of Scripps Research Institute Renowned biochemist Michael A. Marletta, PhD, assumed the post of president and CEO of The Scripps Research Institute on January 1, 2012, succeeding Richard A. Lerner, MD, who led the institution for more than two decades. Marletta moved to Scripps Research from the University of California, Berkeley, where he served as chair of the Department of Chemistry, co-director of the Chemical Biology Graduate Program, Aldo DeBenedictis Distinguished Professor of Chemistry, and Professor of Biochemistry in the Department of Molecular and Cell Biology. He joined the Scripps Research faculty July 1, 2011, following his selection by the Board of Trustees as the institute’s next President.

A former recipient of the prestigious MacArthur Fellowship as well as many other awards and honors, Marletta has focused his laboratory research on the intersection of chemistry and biology. He is an acknowledged pioneer in discovering the role of nitric oxide, a critical player in communication between cells.

Marletta is the third head of the institute in the 50 years since it began its focus on basic biomedical research. Its first director was Frank Dixon, MD, who arrived with his colleagues at the Scripps Clinic and Research Foundation in 1961 and was appointed head of research operations in 1970. Lerner, who had led the institute since 1987, will remain a member of the Scripps faculty.

NIH Executive Selected to Head Scientific Operations for Scripps Florida The Scripps Research Institute named Dawn Johnson, PhD, as senior director of scientific operations for the Scripps Florida campus and she started her position on May 7, 2012. Johnson, age 40, was the associate director for science management in the Office of the Scientific Director at the National Institutes of Mental Health (NIMH) Intramural Research Program. The program, with an annual budget of $168 million, includes 47 active clinical and basic labs and eight core facilities. Since joining the NIH in 2002, Johnson has won several NIMH and NIH Director awards for her work on planning and communications projects.

A native of Atlanta, Johnson earned an associate’s degree in liberal arts from the Oxford College of Emory University in 1991, a BS from Georgia State University in biology in 1993, and a PhD in neuroscience from the University of Wisconsin, Madison, in 1999. She also received a certificate in public health policy from George Washington University in 2005. Johnson is excited to return to

Scripps Florida Funding Corporation 4 Annual Report 2012 Florida, having participated in postdoctoral training in two labs at the University of Miami from 1999 to 2002. She also has family in Palm Beach County.

Johnson replaces Harry Orf, who headed the Jupiter campus from its inception until February 2012 when he returned to Massachusetts General Hospital in Boston to manage scientific research operations there.

Palm Beach Real Estate Executive and Entrepreneur Richard Sloane Elected to Board of Trustees “We would like to offer Richard a warm welcome,” said Dick Gephardt, President/CEO of Gephardt Government Affairs and lead trustee of the Scripps Research Board of Trustees. "We are confident his contributions to the board will help foster the Institute's continued preeminence in biomedical research and graduate education."

Over the last 40 years, Sloane has been involved in numerous industries including technology distribution, technical support centers, ocean transportation, and Internet information and commerce sites. In addition, he has built, developed, and owned commercial and residential properties in six states. Sloane earned a bachelor’s degree in Business/Accounting, and a law degree and master in laws degree from George Washington University.

In addition to serving on the Scripps Florida Council, Sloane is a Sponsor Member of the Kravis Center for the Performing Arts in West Palm Beach and serves on the Board of Directors of Temple Emanu-El, the Palm Beach Civic Association, and the Israel Cancer Association. He also serves on the Dean’s Advisory Board of Florida Atlantic University Medical School, the Leadership Council of Cleveland Clinic Florida, and the External Advisory Board of the Institute of Aging of the University of Pennsylvania Medical School. Sloane lives in Palm Beach with his wife, Carolyn.

Also joining the Scripps Research Board of Trustees is Peter Farrell, a San Diego entrepreneur and business executive. Farrell is founder, chairman, and CEO of ResMed, a developer, manufacturer, and marketer of products for the diagnosis and treatment of sleep-disordered breathing.

Scripps Florida Philanthropic Accomplishments

Scripps Florida added a $2 million dollar donor this past fiscal year. The Scripps Florida Council of 100 continues to serve as a driving force behind funding and the Front Lines of Hope Discussion Series and the Science of Health series continue to be popular lectures series in which Scripps endeavors to reach out to the philanthropic community.

Major Funding The Esther B. O’Keeffe Charitable Foundation made a $2 million donation to The Scripps Research Institute to fund biomedical research and education on the Florida campus. In recognition of the gift, the Founders Room and the adjoining board room at Scripps Florida have been named the Esther B. O’Keeffe Founders Suite.

The Esther B. O’Keeffe Charitable Foundation was established in 1990 by the late philanthropist Esther B. O’Keeffe, wife of respected surgeon and philanthropist Dr. Arthur O’Keeffe. Their children now carry on the family tradition by serving as trustees of the foundation, which supports a variety of health

Scripps Florida Funding Corporation 5 Annual Report 2012 and medical research causes, as well as a broad spectrum of arts and cultural programs. Over the years, the foundation has supported innovative non-embryonic stem cell research at Scripps, helping to advance breakthroughs in the development of new treatments for conditions such as diabetes, Alzheimer’s, Parkinson’s, hearing loss, and spinal cord damage.

The new unrestricted gift will be used to fund special initiatives on the Florida campus. In the past, unrestricted funds have provided state-of-the-art scientific infrastructure, funded “out of the box” research projects, provided crucial “bridge funding” for scientists between grants, and enabled graduate students to study in the institute’s top-ranked PhD program. With this gift, the foundation and its trustees become Scripps Florida Founders, a designation that honors donors who have made lifetime contributions of $2 million or more to the Jupiter campus.

Community Outreach to Broaden Philanthropy The Scripps Florida Council The Scripps Florida Council was formed in September 2009 to lead efforts to build a robust philanthropic environment for Scripps Florida. Council members are prominent volunteer leaders whose experience and contacts help Scripps Florida to accelerate and enhance its scientific results.

Front Lines of Hope Discussion Series Now in its fourth year, the Front Lines of Hope is a series of lectures that serves to educate and enlighten all who attend about some of the most challenging issues of human health. Details on these lectures may be found in Appendix 4 which contains information on all of Scripps’ outreach activities for the fiscal year.

Science of Health Lecture Series The Scripps Florida Council presented three thought-provoking and topical subjects for The Science of Health lecture series for the 2011-2012 season at the Royal Poinciana Chapel in Palm Beach. These talks expand on the Front Lines of Hope lectures offered in Jupiter. The Science of Health is a Front Lines of Hope presentation for Palm Beach friends of Scripps Florida.

Scripps Florida Faculty

Eight faculty members were added to the Scripps Florida faculty in fiscal year 2012. They are:

Srini Subramaniam, PhD, Assistant Professor, Department of Neuroscience Subramaniam, who investigates the signaling networks involved in neurodegenerative diseases, was a research associate in neuroscience at Johns Hopkins University prior to joining Scripps. Subramaniam received a bachelor’s degree in chemistry, botany, and zoology in 1992 from the University of Bangalore, India, and a PhD in neuroscience in 2004 from the University of Heidelberg, Germany, graduating summa cum laude. He also received the German Anatomical Society’s Wolfgang-Bargmann Prize, and the Young Investigator Award from the University of Heidelberg. During his graduate studies, Subramaniam founded the Samatva Trust for Rural Education in Bangalore. The trust’s goal is to support children who excel in school but cannot pursue further education due to lack of financial support. More than a thousand students have benefited from the scholarship program. For more information, please visit www.samatvatrust.org Subramaniam completed his postdoctoral work at Johns

Scripps Florida Funding Corporation 6 Annual Report 2012 Hopkins University. In 2010, the Johns Hopkins School of Medicine honored him with the Daniel Nathan Research Award. At Scripps Florida, Subramaniam’s laboratory will focus on finding target genes involved in neurodegenerative diseases such as Huntington’s, Parkinson’s, and Alzheimer’s and developing novel therapeutics to treat them.

Brock Grill, PhD, Assistant Professor, Department of Neuroscience Previously, Grill was a member of the Department of Pharmacology at the University of Minnesota. Grill received a bachelor’s degree in Microbiology from the University of Alberta, Canada, in 1998, and a PhD in Experimental Medicine from the University of British Columbia in 2003. He conducted postdoctoral work at the University of California, Santa Cruz from 2004 to 2007 and Stanford University from 2007 to 2009. Grill’s research is focused on understanding how different events in neuronal development are coordinated on a molecular level. The formation and wiring of the brain requires the intricate interplay of a series of complex molecular events. By unraveling the molecular mechanisms that govern neuronal development in the roundworm C. elegans, Grill said he hopes to gain insight into how neurons manage numerous signals from their environment to form a neural network. Such knowledge has tremendous potential to help generate new therapies to treat neurodegenerative diseases, as well as injury to the central nervous system from stroke and trauma.

Christoph Rader, Associate Professor, Department of Cancer Biology and the Department of Molecular Therapeutics Before coming to Scripps Florida, Rader was a senior scientist at the National Cancer Institute (NCI) in Bethesda, Maryland. Prior to that, he was an assistant professor on the La Jolla, California campus. Rader has already taken advantage of that proximity, launching collaborations with Scripps Florida chemists William R. Roush and Thomas Kodadek. Rader studied biochemistry and molecular biology at the University of Bayreuth in Germany (1986-1988) and at the University of Zurich in Switzerland (1988-1995), where he graduated with a diploma in biochemistry in 1991. In 1995, he was awarded a PhD with honors from the University of Zurich for his work on immunoglobulin superfamily molecules. Rader did postdoctoral work with Professor Carlos F. Barbas III at Scripps California, where he specialized in antibody engineering, phage display, and catalytic antibody technologies. Following his promotion to assistant professor at Scripps Research in 1999, he won the prestigious Investigator Award from the Cancer Research Institute in 2000. Shortly after, he was part of a Scripps Research team that invented the concept of chemical programming of monoclonal antibodies to generate hybrid cancer therapeutics, a cross between traditional small molecules and a certain type of monoclonal antibody. After commercialization, this innovation has brought several new drugs into phase I and II clinical trials for the treatment of various cancers and metabolic diseases. Rader joined the NCI in 2003 to head the Antibody Technology Section in the Experimental Transplantation and Immunology Branch. In 2007, he received the NCI Director's Intramural Innovation Award for Principal Investigators for a novel chemical programming concept. His achievements include more than 80 publications and 13 patents or patent applications in the area of antibody engineering and conjugation technologies. Rader’s research is focused on developing antibody therapies to treat cancer.

Joseph Kissil, Associate Professor, Department of Cancer Biology Prior to joining Scripps Florida, Kissil, 45, was an associate professor at The Wistar Institute in Philadelphia, PA, as well as a member of the Graduate Group in Cell and Molecular Biology at the University of Pennsylvania. Kissil received a bachelor’s degree in biology from Ben-Gurion University in Israel and a PhD in molecular biology from the Weizmann Institute of Science, Israel. He did

Scripps Florida Funding Corporation 7 Annual Report 2012 postdoctoral work at the Massachusetts Institute of Technology. In 2001, he received a Young Investigator Award from the Neurofibromatosis Foundation and in 2003, the R.L. Kirchstein National Research Service Award. In 2010, Kissil was named an American Cancer Society Research Scholar. Kissil has long been interested in the role the tumor microenvironment plays in cancer growth and how the deregulation of various signaling pathways, such as those that relay information from the extracellular environment into the cell interior, can contribute to the disease.

Matthew Pipkin, PhD, Assistant Professor, Department of Cancer Biology Before joining Scripps Florida, Pipkin, 37, held a junior faculty position at the La Jolla Institute for Allergy and Immunology. Pipkin, a Florida native who now lives in Juno Beach, received a bachelor’s degree in microbiology and immunology from the University of Miami in 1998, and a PhD in microbiology and immunity in 2005 from the same institution. He did postdoctoral training at Harvard Medical School. Pipkin’s research interests are in the study of chromatin, the cluster of proteins that compact the DNA of chromosomes in the cell nucleus; like a meticulous butler, chromatin dynamically packs the DNA in different ways in different cell types to help prevent damage and to help ensure that only certain genes are accessible for transcription as cells become more specialized. His lab specifically focuses on understanding how chromatin regulates accessibility to genes that promote the differentiation of cytotoxic lymphocytes, immune system cells that directly kill cancer cells.

Paul D. Robbins, PhD, Professor, Metabolism and Aging Department Robbins, 54, received a BA in biology from Haverford College, PA, in 1980 and a PhD in molecular biology from the University of California, Berkeley, in 1985. He conducted postdoctoral work at the Whitehead Institute at the Massachusetts Institute of Technology from 1986 to 1990. Robbins joined the University of Pittsburgh School of Medicine as an assistant professor in the Department of Molecular Genetics and Biochemistry in 1990 and was appointed associate professor in 1996. He became a professor in the Department of Orthopedic Surgery in 2001. Robbins’ honors and awards include the Synos Foundation Research Award (2000), the Nicolas Andry Award (2004), the Orthopedic Research Society Kappa Delta Award (2005), and the Juvenile Diabetes Research Foundation Mary Jane Kugel Award (2009). In his research program, Robbins focuses on various biological approaches to understanding and treating age-related degenerative diseases, including cancer, bone healing, and diabetes. He has developed a gene therapy approach to arthritis, and is participating in a clinical trial for osteoarthritis—a project he expects to continue at Scripps Florida. His laboratory is also studying a novel peptide for bone treatment.

Laura J. Niedernhofer, MD, PhD, Associate Professor, Metabolism and Aging Department Niedernhofer, 47, received a BS in chemistry from Duke University in 1985 and a master’s in physiology from Georgetown University in 1991. She was awarded a PhD in biochemistry from Vanderbilt University School of Medicine in 1996 and an MD from Vanderbilt just two years later. She conducted postdoctoral work at Erasmus Medical Center in the Netherlands from 1999 to 2003. In 1999, she received a National Science Foundation International Research Fellow Award that was followed the next year by an American Cancer Society Postdoctoral Fellowship. In 2005, she became a Hillman Fellow at the University of Pittsburgh Cancer Institute (2005-2008) as well as being named a New Scholar in Aging by The Ellison Medical Foundation (2005-2009). Niedernhofer is interested in the relationship among DNA, cancer and aging—especially the link between aging and DNA damage. She has focused much of her work on a rare and fatal human disorder known as XFE progeroid

Scripps Florida Funding Corporation 8 Annual Report 2012 syndrome, which causes patients to rapidly develop progressive symptoms that are associated with old age such as heart disease, muscle wasting and bone loss.

Scott Hansen, Assistant Professor, Department of Molecular Therapeutics Prior to joining the Jupiter campus faculty, Hansen was a postdoctoral fellow at the Dana-Farber Cancer Institute at Harvard Medical School. Hansen, 37, received his bachelor’s degree in chemistry from Utah State University in 1999. He held positions at Abbott Laboratories and the California campus of Scripps, before pursuing a PhD in biochemistry from the University of California, San Diego (UCSD), winning the Martin D. Kamen Award for best doctoral thesis. Hansen pursed postdoctoral work at The Rockefeller University under Nobel Laureate Rod MacKinnon and as a fellow of the Howard Hughes Medical Institute from 2007 to 2011 before his work at the Dana-Farber Cancer Institute. Hansen’s research is focused on ion channels and lipids and how they interact. Ion channels function like pores in the lipid membranes of cells, allowing ions or electrically charged atoms and molecules to flow across those membranes. They perform critical roles in the central nervous system as well as the immune system and muscle cells—the heart’s rhythmic beating is based on the opening and closing of ion channels.

Scripps Florida Scientific Accomplishments The following is an overview of Scripps Florida’s scientific accomplishment from October 1, 2011 through September 30, 2012, ranging from scientific publications and grant awards from sources other than the State grant to scientific accomplishment awards.

Scientific Publications

The following are a small sample of the publications during the year by Scripps Florida scientists:

Scientists Develop Brand New Class of Small Molecules through Innovative Chemistry Inspired by natural products, scientists on the Florida campus of The Scripps Research Institute have created a new class of small molecules with the potential to serve as a rich foundation for drug discovery. Combining the power of synthetic chemistry with some advanced screening technologies, the new approach could eventually expand by millions the number of provocative synthetic compounds available to explore as potential drug candidates. This approach overcomes substantial molecular limitations associated with state-of-the-art approaches in small molecule synthesis and screening, which often serve as the foundation of current drug discovery efforts. The study, led by Scripps Research Associate Professor Glenn Micalizio, was published November 20, 2011, in an advanced online edition of the journal Nature Chemistry. To frame the significance of this advance, Micalizio explains that high-throughput screening is an important component of modern drug discovery. In high-throughput screening, diverse collections of molecules are evaluated en masse for potential function in a biological area of interest. In this process, success is critically dependent on the composition of the molecular collections under evaluation. Modern screening centers maintain a relatively static collection of molecules, the majority of which are commercially available materials that have structures unrelated to natural products—molecules that are appreciated as validated leads for drug development. The study was supported by the Fidelity Biosciences Research Initiative, The State of Florida (The Florida Funding Corporation), and the National Institutes of Health.

Scripps Florida Funding Corporation 9 Annual Report 2012 Scientists Uncover New Role for Gene in Maintaining Steady Weight Against the backdrop of the growing epidemic of obesity in the United States, scientists from Scripps Florida have made an important new discovery regarding a specific gene that plays an important role in keeping a steady balance between our food intake and energy expenditure. The study may help scientists better understand the keys to fighting obesity and related disorders such as diabetes. The study, which was published in the November 25, 2011 print edition of The Journal of Biological Chemistry, focused on the melanocortin-3 receptor (MC3R), which normally responds to signals of nutrient intake.

Scripps Research Scientists Elevate Little-Studied Cellular Mechanism to Potential Drug Target For years, science has generally considered the phosphorylation of proteins—the insertion of a phosphorous group into a protein that turns it on or off—as perhaps the factor regulating a range of cellular processes from cell metabolism to programmed cell death. Now, scientists from the Florida campus of The Scripps Research Institute have identified the importance of a novel protein-regulating mechanism—called sulfenylation—that is similar to phosphorylation and may, in fact, open up opportunities to develop new types of drugs for diseases such as cancer. The study was published December 11, 2011, in an advance online edition of the journal Nature Chemical Biology. Another broad impact of these findings, Kate Carroll, a Scripps Florida associate professor who led the study, said, is to open up an entirely new mechanism to exploit for the development of therapeutics, particularly in cancer. The study was supported by the American Heart Association and the Camille Henry Dreyfus Teacher Scholar Award.

Scripps Research Scientists Create Novel RNA Repair Technology Scientists from the Florida campus of The Scripps Research Institute identified a compound that can help repair a specific type of defect in RNA, a type of genetic material. The methods in the new study could accelerate the development of therapeutics to treat a variety of incurable diseases such as Huntington’s disease, Spinocerebellar ataxia, and Kennedy disease. The new study, published January 17, 2012 in an advance, online edition of the journal ACS Chemical Biology, describes a method to find compounds that target defective RNAs, specifically RNA that carries a structural motif known as an “expanded triplet repeat.” The triplet repeat, a series of three nucleotides repeated many more times than normal in the genetic code of affected individuals, has been associated with a variety of neurological and neuromuscular disorders.

Creation of Compounds that Dramatically Alter Biological Clock and Lead to Weight Loss Scientists from Scripps Florida synthesized a pair of small molecules that dramatically alter the core biological clock in animal models, highlighting the compounds’ potential effectiveness in treating a remarkable range of disorders—including obesity, diabetes, high cholesterol, and serious sleep disorders. The study was published on March 29, 2012, in an advance, online edition of the journal Nature. In one of the study’s more striking findings, both synthetic compounds were shown to reduce cholesterol production. Cholesterol in the blood of treated animal models decreased 47 percent; triglycerides in the blood decreased 12 percent.

Scripps Florida Scientists Shed Light on Age-Related Memory Loss and Possible Treatments In animal models, Scripps Florida scientists have shown that the loss of memory that comes with aging is not necessarily a permanent thing. In a new study published in an online edition of the journal Proceedings of the National Academy of Science, Ron Davis, chair of the Department of Neuroscience at Scripps Florida, and Ayako Tonoki-Yamaguchi, a research associate in Davis’s lab, took a close look

Scripps Florida Funding Corporation 10 Annual Report 2012 at memory and memory traces in the brains of both young and old fruit flies. What they found is that like other organisms—from mice to humans—there is a defect that occurs in memory with aging. In the case of the fruit fly, the ability to form memories lasting a few hours (intermediate-term memory) is lost due to age-related impairment of the function of certain neurons. Intriguingly, the scientists found that stimulating those same neurons can reverse these age-related memory defects.

Identification of New Molecules Important for Vision and Brain Function In a pair of related studies, scientists from the Florida campus of The Scripps Research Institute have identified several proteins that help regulate cells’ response to light—and the development of night blindness, a rare disease that abolishes the ability to see in dim light. In the new studies, published recently in the journals Proceedings of the National Academy of Sciences (PNAS) and The Journal of Cell Biology, Scripps Florida scientists were able to show that a family of proteins known as Regulator of G protein Signaling (RGS) proteins plays an essential role in vision in a dim-light environment.

Scripps Florida Scientists Identify Critical ‘Quality Control’ for Cell Growth Scientists identified a series of intricate biochemical steps that lead to the successful production of proteins, the basic working units of any cell. The study, which appears in the July 6, 2012 edition of the journal Cell, sheds light on the assembly of a structure called the ribosome, a large and complex protein- producing machine inside all living cells. Ribosomes are the targets of many commercially used antibiotics and represent a promising area of research because of the importance of ribosome assembly and function for cell growth. There are well-established links between defects in ribosome assembly and cancer, making this pathway a potential new target for anti-cancer drugs.

Scientists Show Potent New Compound Virtually Eliminates HIV in Cell Culture A new study by scientists on the Florida campus of The Scripps Research Institute shows, in cell culture, a natural compound that can virtually eliminate human immunodeficiency virus (HIV) in infected cells. The compound defines a novel class of HIV anti-viral drugs endowed with the capacity to repress viral replication in acutely and chronically infected cells. The HIV/AIDS pandemic continues to affect 34 million individuals worldwide, including more than 3 million children, according to the World Health Organization. Current treatment involves the use of several antiretroviral drugs, termed Highly Active Antiretroviral Therapy (HAART), which can extend the life expectancy of HIV-positive individuals and decrease viral load without, however, eradicating the virus. The new study, published in the July 20, 2012 issue of the journal Cell Host and Microbe, focused on a medically promising compound known as Cortistatin A. This natural product was isolated in 2006 from a marine sponge, Corticium simplex, discovered more than 100 years ago. In 2008, Scripps chemist Phil Baran and his team won the global race to synthesize the compound, presenting an efficient and economical method.

Scripps Florida Scientists Identify a Critical Tumor Suppressor for Cancer Scientists from the Florida campus of The Scripps Research Institute have identified a protein that impairs the development and maintenance of lymphoma (cancer of the lymph nodes), but is repressed during the initial stages of the disease, allowing for rapid tumor growth. While the study, published in the August 3, 2012 edition of the journal Cell, largely focuses on the role of this new tumor suppressor in lymphoma induced by MYC oncoproteins (the cancer-promoting products of MYC oncogenes), the authors show this circuit is apparently operational in all human tumors with MYC involvement, which is more than half of all human tumor types.

Scripps Florida Funding Corporation 11 Annual Report 2012 Team Uncovers Link Between Hormone Levels and Risk for Metabolic Disease Working with a national team of researchers, a scientist from the Florida campus of The Scripps Research Institute has shown for the first time a link between low levels of a specific hormone and increased risk of metabolic disease in humans. The study, published online ahead of print in The Journal of Clinical Endocrinology & Metabolism, focuses on the hormone adropin, which was previously identified by Scripps Associate Professor Andrew Butler’s laboratory during an investigation of obese and insulin-resistant mice. Adropin is believed to play an important role in regulating glucose levels and fatty acid metabolism.

Molecule Designed That Reverses Some Fragile X Syndrome Defects Scientists at Scripps Florida designed a compound that shows promise as a potential therapy for one of the diseases closely linked to fragile X syndrome, a genetic condition that causes mental retardation, infertility, and memory impairment, and is the only known single-gene cause of autism. The study, published online ahead of print in the journal ACS Chemical Biology on September 4, 2012, focuses on tremor ataxia syndrome, which usually affects men over the age of 50 and results in Parkinson’s like- symptoms—trembling, balance problems, muscle rigidity, as well as some neurological difficulties, including short-term memory loss and severe mood swings. With fragile X syndrome, tremor ataxia syndrome, and related diseases, the root of the problem is a structural motif known as an “expanded triplet repeat”—in which a series of three nucleotides are repeated more times than normal in the genetic code of affected individuals. This defect, located in the fragile X mental retardation 1 (FMR1) gene, causes serious problems with the processing of RNA.

Grant Awards

Grant awards from sources other than the State of Florida numbered 52 and totaled almost $50 million this fiscal year and some of the significant awards included the following:

$4.2 Million Award from NIH to Study Type 1 Diabetes A scientist at TSRI was awarded $4.2 million from the NIH in a program to advance what the agency calls “bold and creative research” into Type I diabetes. Thomas Kodadek, a professor in the Department of Chemistry on the Scripps Florida campus, is the principal investigator on the study. The award will be shared with researchers at the University of Miami and Opko, a Florida-based biotechnology company. The new four-year grant from the NIH National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK) is a special Type I Diabetes Impact Award (DP3). Type I diabetes is an autoimmune disease, in which the immune system attacks the body’s own tissues. In Type 1 diabetes, the immune system attacks cells in the pancreas that produce insulin, which leads to insulin deficiency; the condition is treated with regular insulin injections. The new grant to Kodadek and his colleagues will fund research to determine early autoimmune reactions that drive the development of Type I diabetes, as well as to look for ways to selectively block such autoimmune diseases without shutting down or damaging the entire immune response.

$2.2 million Grant to Study Hepatitis C Virus and Liver Cancer TSRI was awarded a $2.2 million grant by the NIH to determine how the hepatitis C virus (HCV) induces liver cancer. The research could lead to potentially new therapeutic targets for treating those chronically infected with the virus. Timothy Tellinghuisen, an assistant professor on the Florida campus, is the principal investigator for the project. Hepatitis C virus infection is a major public health

Scripps Florida Funding Corporation 12 Annual Report 2012 problem worldwide. Estimates place the number of HCV infected individuals at approximately 170 to 200 million, representing nearly three percent of the world’s population, according to the World Health Organization. HCV infection and its assorted pathologies are responsible for an estimated 250,000 deaths a year worldwide. A majority of patients remain chronically infected, which can lead to progressive liver damage, cirrhosis, and often the development of hepatocellular carcinoma - liver cancer. An estimated 60 to 70 percent of all those infected develop chronic infections and most progress to major liver damage. Each year, as many as five percent of these chronically infected patients will develop liver cancer. While the mechanisms by which HCV induces liver cancer are largely unknown, Tellinghuisen’s research points to host cell signaling pathways that are likely altered by the virus.

$500,000 Grant from Michael J. Fox Foundation to Study Parkinson Disease The Scripps Research Institute was awarded a $500,000 grant by the Michael J. Fox Foundation to study a pair of genetic mutations that could lead to a new and potentially vital therapeutic target for Parkinson’s disease, a progressive and fatal neurodegenerative disorder. Philip LoGrasso, PhD, a professor in molecular therapeutics and senior director for drug discovery at Scripps Florida, is the principal investigator for the project. The study will focus on two genes, the leucine-rich repeat kinase 2 (LRRK2) and the serum glucocorticoid-regulated kinase 1 (SGK1). Genetic testing of several thousand Parkinson’s patients has shown that the risk of Parkinson’s disease associated with mutations in the LRRK2 gene are substantially reduced by mutations in the SGK1 genes, bringing the risk back in line with that of the general population.

$1 Million Research Grant from Novo Nordisk Andrew Butler, an associate professor in The Scripps Research Institute’s Department of Metabolism and Aging, was awarded one million dollars in funding over the next two years to further his research into a novel protein with the potential to improve the understanding and future treatment of diabetes. The award is notable in that it comes not from the US National Institutes of Health but from Novo Nordisk, an international healthcare company based in Denmark recognized as a world-leader in diabetes treatment. The Novo Nordisk Diabetes Innovation Award Program was launched in 2011 to help scientists substantiate early research efforts that could result in new treatment options for diabetes and obesity. Butler’s two-year research project, entitled the “Investigation of a Novel Peptide Hormone in Diabetes Treatment,” was selected from more than 80 submitted proposals from US and Canadian research institutions.

$3.85 Million NIH Grant to Develop New Class of Cancer Therapies A pair of Scripps Florida scientists, one a cancer biologist and the other a chemist, was awarded $3.85 million from the National Institutes of Health (NIH) to develop a new generation of broad spectrum anti- cancer therapeutics, to treat cancers such as breast cancer and lymphoma. John Cleveland, chair of Scripps Florida’s Department of Cancer Biology, and William Roush, chemistry professor, executive director of Medicinal Chemistry, and associate dean of graduate studies at Scripps Florida, are co- principal investigators for the new five-year project. The focus of the research is on two proteins considered high priority targets for cancer therapeutics, Mct1 and Mct4. These “transmembrane transporters,” which specifically transport lactic acid, a byproduct of cancer cell metabolism, out of cancer cells, are expressed at low levels in normal tissues but at high levels in most malignancies.

$3.4 Million Award for HIV/AIDS Research A scientist at The Scripps Research Institute was awarded $3.4 million from the National Institutes of Health to study the mode of action and the therapeutic potential of a new compound that blocks a step of

Scripps Florida Funding Corporation 13 Annual Report 2012 HIV replication not targeted by current therapies. Susana Valente, an assistant professor at Scripps Florida, is the principal investigator of the five-year grant. Valente will lead research into the viral protein known as Tat, a potent activator of HIV gene expression, and a Tat inhibitor that is extremely effective at reducing viral output from acutely and chronically infected cells in culture. Most antiretroviral compounds only block new infections; a Tat inhibitor can reduce viral replication from cells already infected.

$3 Million from National Institute on Drug Abuse to Develop More Effective Pain Treatments Scripps Florida scientists have been awarded $3.1 million by the National Institute on Drug Abuse, part of the National Institutes of Health, to study and develop several new compounds that could prove to be effective in controlling pain without the unwanted side effects common with opiate drugs, such as morphine, Oxycontin®, and Vicoden®. Laura Bohn, an associate professor in the Department of Molecular Therapeutics and Neuroscience, and Thomas Bannister, an assistant professor in the Department of Chemistry and associate scientific director in the Translational Research Institute at Scripps, will serve as joint principal investigators for the new five-year study. Their study will focus on four new classes of compounds that appear to differ fundamentally from opiates in the side effects that they can produce.

$2 Million from NIH to Study New Pathway of Lymphoma The National Institutes of Health awarded The Scripps Research Institute $2 million to study the role of a pathway in the development and maintenance of B-cell lymphoma, a type of cancer that begins in the immune system and turns normal disease fighting cells into cancers. The disease affects immune cells known as lymphocytes, which are part of our white blood cells. John Cleveland, PhD, chair of the Department of Cancer Biology on the Scripps Florida campus, is the principal investigator for the new five-year study. B-cell lymphomas tend to occur in older patients and in those people whose immune system has been compromised. It is one of the most common blood cancers in the United States and kills about 20,000 Americans each year.

$1.5 Million Awarded from NIH to Develop Potent New HIV Inhibitors A Scripps Florida team was awarded nearly $1.5 million by the National Institutes of Health to identify and develop novel potent inhibitors of the human immunodeficiency virus (HIV), the cause of AIDS. A. Donny Strosberg, a professor on the Florida campus of The Scripps Research Institute, is the principal investigator for the new three-year study. Current treatments of HIV-infected patients are based on combinations of drugs—called cocktails—that target several critical key steps in the early and late stages of the viral replication cycle. While these combinations have proven effective in controlling the infection in many patients, the continuous emergence of new multi-resistant viral strains requires the development of new classes of drugs that can be aimed at different targets on HIV. Strosberg’s target is the capsid protein or CA, the primary component of the HIV virion—the infectious particle responsible for transporting the viral genome to host cells. This viral protein forms a cone-shaped shell around the HIV genome, and plays a critical role in the lifecycle of the virus by packaging and organizing the viral genome so that HIV can replicate efficiently.

$1 Million Grant to Develop New Tools for Hepatitis C Treatment Discovery Timothy Tellinghuisen, a Scripps Florida associate professor, and his team were awarded just over $1 million from the National Institutes of Health for a three-year study to develop new high-throughput screening tests to find compounds that disable a protein essential to hepatitis C virus (HCV) replication.

Scripps Florida Funding Corporation 14 Annual Report 2012 Hepatitis C is a slow-progressing disease that causes inflammation of the liver and affects some 170 million people worldwide, according to the Hepatitis Foundation International. Like the current approach to HIV/AIDS, a cocktail-based therapeutic approach, which uses multiple inhibitors targeting distinct aspects of the HCV life cycle, has emerged as one of the most promising. In the search for new treatments against HCV, it has become critical to develop novel targets to attack. Tellinghuisen's new research is focused on a potentially potent, but somewhat neglected, enzyme. This protease—an enzyme that breaks down proteins—is known as NS2, which is necessary for productive infections that produce new viruses and spread the infection among cells.

$1 Million for Stress-Associated Disease and Aging Research A Scripps Florida scientist was awarded just over $1 million from the National Institutes of Health to develop a range of new tests that could lead to new treatments for a number of stress-associated and degenerative disorders of advancing age. Shuji Kishi, an assistant professor at Scripps, is the principal investigator for the three-year study. The new tests will focus on diseases linked to oxidative stress (and the stress-induced inflammation that often accompanies it), closely associated with aging. Those diseases include atherosclerosis, Alzheimer’s and Parkinson’s disease, diabetes, heart attack, sarcopenia, liver and kidney disease, and stroke. Despite the widespread damage caused by oxidative stress, the number of therapeutic remedies for it remains virtually non-existent. During periods of cellular stress, such as exposure to UV radiation or chronic diseases like cancer, the level of highly reactive oxygen- containing molecules in cells can increase, resulting in misfolded proteins and cell damage. Cells can protect themselves from this damage by activating certain antioxidant genes, but age and extended periods of stress can impair that response. In the new study, Kishi plans to develop a series of tests to identify drug leads that will prevent oxidative damage in a novel vertebrate model. His approach will involve high-content screens in zebrafish.

$8.4 Million Grant to Develop New Anti-Smoking Treatments Paul Kenny, a Scripps Research associate professor who presented to the SFFC Board of Directors at the March 2012 meeting, is the program director and principal investigator for the study. His research team was awarded an $8.4 million grant from the National Institute on Drug Abuse of the National Institutes of Health (NIH) to develop new compounds to help prevent relapse in smokers who are kicking the habit. The new five-year NIH award is a program project grant, which is designed to support an institutionally-based research program with a well-defined research focus that requires several interrelated subprojects as part of the overall study.

$700,000 Award to Develop New Treatments for Cocaine Addiction Thomas Bannister, an assistant professor in the Department of Chemistry and associate scientific director in the Translational Research Institute at Scripps Florida, is the principal investigator for the five-year study and he has been awarded more than $700,000 by the National Institute on Drug Abuse (NIDA), part of the National Institutes of Health (NIH), to study and optimize newly discovered compounds to combat cocaine addiction. Chemists in the Bannister group discovered the compounds as part of an effort to find new classes of molecules capable of treating brain disorders.

$1.9 Million Award to Study Food Intake and Metabolism A Scripps Florida scientist was awarded $1.9 million from the National Institutes of Health to study pathways that regulate how we coordinate the timing of our desire for food throughout the day. These pathways play a key role in maintaining the body’s balance between how much we eat and our

Scripps Florida Funding Corporation 15 Annual Report 2012 metabolism and energy expenditure. Andrew Butler, an associate professor at Scripps Florida, is the principal investigator for the new four-year study. Beyond forming a better understanding of the functions of the central nervous system, Butler said, the ultimate point of the research is to develop new and innovative approaches to prevent and treat metabolic and circadian-rhythm disorders.

$1.5 Million Grant to Develop New Approaches to Treat Cancer John Cleveland, professor and chair of the Department of Cancer Biology, and Derek Duckett, associate scientific director of the Translational Research Institute at Scripps Florida, will act as co-principal investigators. These researchers were awarded approximately $1.5 million from the National Institutes of Health to identify and develop new therapeutic approaches against a broad spectrum of cancers. The new three-year grant will allow the Scripps Florida scientists to develop high-throughput screening tests to identify and optimize inhibitors of the “autophagy pathway,” the principal recycling center of the cell, which is especially active during times of stress or nutrient loss. During autophagy, various cell components, including damaged proteins and mitochondria, are delivered to the lysosome, which is essentially a bag of enzymes that breaks down cellular waste.

$2.8 Million to Study Critical Cell Signaling Mechanism and Develop Potential Therapeutics Kate Carroll, a Scripps Florida associate professor, will be the principal investigator for the new projects. She was awarded a pair of grants totaling $2.8 million from the National Institute of General Medical Sciences of the National Institutes of Health, and from TargAnox, a Massachusetts-based biotechnology firm. Research funded by both grants will focus on a process known as sulfenylation, a relatively new field of research. During periods of cellular stress caused by factors such as UV radiation or chronic diseases such as cancer, the level of highly reactive oxygen-containing molecules can increase, resulting in inappropriate modification of proteins and cell damage through this process. One oxidant produced naturally in the body, hydrogen peroxide, acts as a messenger that can activate cell proliferation. In the new research, Carroll will look at cell signaling in sulfenylation and explore ways that it might be modified with potential drug compounds to treat conditions such as lung and breast cancers, as well as be used to diagnose and monitor such diseases.

Scientific Awards

Several Scripps Florida scientists won scientific awards to note their scientific breakthroughs or research. Often these awards were coupled with a substantial monetary award.

Scripps Research Scientist Wins Pair of Grants to Study Critical Component of Memory Sathyanaryanan Puthanveettil, an assistant professor on the Florida campus of The Scripps Research Institute, has been awarded a pair of notable grants to study a critical component of long-term memory formation. Puthanveettil will receive $225,000 over three years from the prestigious Whitehall Foundation to study the role in long-term memory of a motor protein called kinesin. In this study, he will use the marine snail, Aplysia, a favorite of memory researchers because of its exceptionally large neurons and simple nervous system. In addition to the Whitehall award, Puthanveettil has received a one-year, $100,000 grant from the Alzheimer’s Drug Discovery Foundation. Puthanveettil also plans to use the award to study kinesin, in this case to develop molecular screens to identify small molecules that can modulate kinesin function in the mammalian brain. This work will be conducted in collaboration with Scripps colleagues Peter Hodder, senior scientific director of lead identification, and William Roush, chemistry professor, executive director of Medicinal Chemistry, and associate dean of graduate

Scripps Florida Funding Corporation 16 Annual Report 2012 studies at Scripps Florida. The Whitehall Foundation emphasizes the support of young scientists at the beginning of their careers and productive senior scientists who wish to move into new fields of interest. The Alzheimer’s Drug Discovery Foundation (ADDF) is the only non-profit organization whose sole mission is to accelerate the discovery and development of drugs to prevent, treat and cure Alzheimer’s disease, related dementias and cognitive aging. Since 1998, the ADDF has granted more than $51 million to fund over 370 Alzheimer’s drug discovery programs in academic centers and biotechnology companies in 18 countries.

Two Scripps Scientists Win Prestigious NIH Innovator Awards Two Scripps Research Institute scientists won prestigious National Institutes of Health Director’s New Innovator Awards. The recipients are Assistant Professor Michael Petrascheck of the institute’s La Jolla, California campus, and Assistant Professor Brian Paegel of the Jupiter, Florida campus. The awards, which were announced by NIH Director Francis S. Collins at the Seventh Annual NIH Director’s Pioneer Award Symposium on September 20, 2012 provided each recipient with $1.5 million in research funding over five years. Paegel, an assistant professor in the Department of Chemistry, will use his award to evolve new molecular tools for protein sequencing. “Imagine being asked to take apart a sophisticated race car with a single Phillips-head screwdriver,” said Paegel. “This is basically where we are today with protein sequencing technology. We will evolve a suite of custom-tailored molecular tools that will allow us to identify all sites of protein modification, and to correlate those changes with normal cellular function and disease. Our approach integrates the institute’s strengths in chemistry and high-throughput screening with my laboratory's expertise in microfluidic technology development and evolution.” Winners of the NIH Director's New Innovator Award are selected on the basis of individual creativity, the innovativeness of his or her research approaches, and the potential of the proposed project, if successful, to have a significant impact on an important biomedical or behavioral research problem.

ABOUT THE BIOTECH CLUSTER SURROUNDING SCRIPPS FLORIDA Florida, Palm Beach County and the Town of Jupiter continue to make great strides in attracting and retaining biotech companies to the area surrounding Scripps Florida – it truly serves as a catalyst for economic development in the town, county and state. Scripps Florida participates in the effort to develop the biotech cluster and maintains strong involvement in statewide organizations, such as BioFlorida and the Florida High Tech Corridor, and local organizations, such as the Business Development Board of Palm Beach County and Palm Beach State College. Detailed reports from some of these organizations may be found in Appendix 2 and Scripps Florida’s support of these organizations and other organizations may be found in Appendix 4. .

Conclusion The Scripps Florida Funding Corporation is pleased to report on Scripps Florida’s significant accomplishments, awards, and scientific achievements for the period of October 1, 2011 through September 30, 2012 in this narrative section of the annual report. From the opening of its permanent campus in 2009 to the multi-million dollar scientific grants awards it has received, Scripps Florida continues to propel scientific discovery forward, benefitting the State of Florida and ultimately all of mankind. The SFFC notes that many of the requirements as set forth in the Operating and Funding Agreement and itemized in the next section of this report occurred well ahead of the required time.

Scripps Florida Funding Corporation 17 Annual Report 2012

Scripps Florida Funding Corporation Eighth Annual Report

Itemized Report for the Year Ended September 30, 2012

INTRODUCTION

Florida Statute 288.955, referred to as the Enabling Statute, sets forth certain information that is required to be included in the SFFC Annual Report. The information that follows has been organized to correspond to the sections of the Enabling Statute that address information to be included in the SFFC Annual Report. As not every section of the Enabling Statute relates to the SFFC Annual Report, only the sections of the Enabling Statute that apply are referenced herein. For convenience, the text of the Enabling Statue that describes the information to be reported in the SFFC Annual Report is set forth next to each Enabling Statute section reference.

Florida Statute 288.955

Subsection (14) ANNUAL REPORT By December 1 of each year, the corporation shall prepare a report of the activities and outcomes under this section for the preceding fiscal year. The report, at a minimum, must include:

Subsection (14) (a) A description of the activities of the corporation in managing and enforcing the contract with the grantee.

Scripps Florida Funding Corporation Board of Directors Meetings Purpose: To oversee the disbursement of the State’s funds invested in Scripps Florida, the Florida Legislature created the Scripps Florida Funding Corporation, hereto referred to as SFFC, a non-profit entity governed by a nine-member Board of Directors and one ex-officio member.

Membership: Of the Board of Directors, three members were appointed by each of the Governor, the House Speaker and the Senate President. Former Governor Bush’s appointees are: Mr. David Gury, former President and CEO of Nabi Pharmaceuticals, of Boca Raton; Mr. Andy Crawford, retired Chairman and CEO of Advanced Disposal Systems, of Jacksonville; and Dr. Pamella Dana, Senior Strategic Advisor for Institute for Human & Machine Cognition, of Destin. Governor Crist re- appointed Mr. David Gury in March 2008 and Dr. Pamella Dana in February 2009. Former Speaker Byrd’s appointee is Dr. Joseph Thomas, dentist, of Vero Beach. The terms of Mr. Andy Crawford and Dr. Joseph Thomas expired in November 2009 and they continue to serve until their replacements are named. Speaker Dean Cannon appointed Dr. Richard M. Luceri, Vice President of Healthcare Services for JM Family Enterprises, Inc., and Mr. Thomas G. Kuntz, the Chairman, President and CEO of SunTrust Bank, Florida, on August 3, 2011. Former Senate President Ken Pruitt named Mr. T. Michael Crook, a C.P.A. with Proctor, Crook and Crowder, P.A., of Stuart, to the Board on September 5, 2008. Senate President Jeff Atwater named Mr. Ed Sabin, Vice-President Biomet, Inc., of Palm Beach Gardens, to the Board on February 9, 2009 and Mr. Gerry Goldsmith, Chairman of First Bank of the Palm Beaches, of Palm Beach, on November 15, 2009. Due to the reorganization of the

Scripps Florida Funding Corporation 18 Annual Report 2012 Governor’s Office of Tourism, Trade and Economic Development into the Department of Economic Opportunity, an ex-oficio member has not been participating in the SFFC meetings.

Meetings and activities: From October 1, 2011 through September 30, 2012, the SFFC Board of Directors (“BOD”) met on March 1, 2012 in the Board room of Scripps Florida. This meeting was the annual grant request meeting and Chairman Mr. Dave Gury, Vice-Chair Dr. Pamella Dana, Mr. Gerry Goldsmith, Mr. Ed Sabin and Mr. Mike Crook were present in person and Dr. Richard Luceri and Mr. Tom Kuntz participated via phone. Other people present were Project Director Ms. Sara Misselhorn, outside auditor, Mr. Scott Porter from Caler, Donten, Levine, TSRI Counsel, Mr. Tom Northrup, SFFC counsel, Kathy Deutsch from Broad and Cassel, outside counsel for TSRI, Ms. Carol Licko from Hogan Lovells, and TSRI CFO, Ms. Donna Weston. At this meeting, the Board reviewed the 2012 annual grant request from Scripps Florida. Audit Committee Chairman Mike Crook explained that the Audit Committee had met extensively the day before this meeting to review the materials for the annual compliance report and the financial statements. Ms. Weston recapped some of the key points of the financial statements for the Board. Mr. Crook explained that the compliance report showed that there was a $2,005 deficiency in the average salary for the administration category and significant time was dedicated to reviewing and understanding this topic at the Audit Committee meeting. Ms. Weston offered Scripps’ perspective on this issue and after Ms. Deutsch explained the components of the annual grant request, the Board agreed that the grant request be approved subject to Scripps’ agreement to provide a letter to SFFC’s legal counsel explaining how it would increase salaries retroactively to certain people in the administration category as identified in an attachment to such letter, so that it would exceed the minimum average salary requirement for administration for 2011. Following the meeting, the Audit Committee worked with Scripps to come to an acceptable solution.

SFFC Committee Meetings

Investment Committee Purpose: The Investment Committee receives and reviews monthly investment reports from the State Board of Administration (SBA) to ensure that SFFC’s investments are consistent with the objectives established in the Trust Agreement and that the SFFC is able to make the disbursements anticipated in the Operating and Funding Agreement between SFFC and TSRI.

Membership: Dr. Thomas is Chairman of the Investment Committee and Mr. Ed Sabin and Mr. Gerry Goldsmith are Committee members. Mr. Rob Smith, Mr. Ben Latham and Mr. Mike McCauley from the State Board of Administration (“SBA”) participate in the Investment Committee meetings.

Meetings and activities: During the 2012 fiscal year, the Investment Committee did not hold a meeting due to the fact that the investment portfolio held at the State Board of Administration was re-evaluated in 2009 and the restructuring of the investment portfolio met the needs of Scripps. A 2011 yearly report was distributed to the committee for their review.

Audit Committee Purpose: The Audit Committee reviews financial information and monitors the financial condition of TSRI and Scripps Florida. The Audit Committee also engages the SFFC auditor, provides oversight for the annual audit of SFFC and compliance monitoring of TSRI and Scripps Florida with the terms of the Operating and Funding Agreement. The Audit Committee provides direction on the scope of the audit

Scripps Florida Funding Corporation 19 Annual Report 2012 engagements and reviews any finding or recommendations related to the audits. The Audit Committee, in turn, reports its recommendations on the reports to the full Board.

The SFFC receives and the Audit Committee reviews the following reports:  TSRI and Scripps Florida unaudited quarterly financial statements  TSRI and Scripps Florida audited annual financial reports  TSRI and Scripps Florida annual budgets  Scripps Florida Annual Report  Scripps Florida Annual Scientific Report

There are three types of annual audit reports that are received and reviewed by the Audit Committee:

I. Scripps Florida and TSRI provide three annual audit reports to SFFC: 1) Audited financial statements of TSRI, including the operations of Scripps Florida. 2) Audited financial statements of Scripps Florida as a separate division, including a report on internal control and compliance in accordance with Government Auditing Standards. 3) A Federal Single Audit of TSRI in accordance with OMB Circular A-133. The audits are prepared by Deloitte and Touche (“D&T”), the independent auditors for TSRI. SFFC’s independent auditor has been granted access to the D&T workpapers in order to assess the application of generally accepted accounting principles and the significant assumptions made by TSRI management in the preparation of its financial statements.

II. SFFC receives two annual audit reports completed by an independent auditor contracted by the SFFC: 1) Audited financial statements of SFFC, including a report on internal controls and compliance in accordance with Government Auditing Standards. 2) A Federal Single Audit of SFFC in accordance with OMB Circular A-133.

III. A contractual monitoring and compliance audit of the Operating and Funding Agreement between TSRI and SFFC (“contractual monitoring and compliance audit”) to address the Monitoring Checklist (Exhibit A-1 to the Funding and Program Agreement between OTTED (now known as the Department of Economic Opportunity) and SFFC). The contractual monitoring and compliance audit is completed by an independent auditor contracted by the SFFC who verifies many of the items covered in this Annual Report, including, but not limited to:  the number of jobs created  the salaries and their consistency with the approved Business Plan  designation of a person to assist in collaborative efforts with OTTED and compliance with OTTED’s requests for cooperation  purchase of equipment consistent with the approved budget  achievement of collaborative efforts with Florida universities

The independent auditor contracted by the SFFC also prepares the annual not-for-profit organization tax return (Form 990) for SFFC, which is reviewed by the Audit Committee prior to submission to the Internal Revenue Service.

Scripps Florida Funding Corporation 20 Annual Report 2012 Membership: Mr. Mike Crook has served as Chairman of the Audit Committee since January 2009. Mr. Crawford, a former Committee Chairman, remained on the Committee, as did Dr. Pamella Dana, for the entire fiscal year. Other participants in the Audit Committee meetings include SFFC’s auditor, Mr. Scott Porter from Caler, Donten, Levine, Porter & Veil, P.A. and TSRI’s Chief Financial Officer, Ms. Donna Weston.

Meetings and activities: From October 1, 2011 through September 30, 2012, the Audit Committee held four meetings to review, discuss and approve the financial reports provided by TSRI and the auditing and compliance matters of SFFC. At the November 30, 2011 meeting, Mr. Porter presented the SFFC financial audit to the committee. The audit was clean and Mr. Porter stated the Management Letter had no significant control or compliance matters to address. On February 3, 2012, Ms. Weston presented the Scripps unaudited financials for the period through June 30, 2011 and the Scripps’ budget, and Audit Committee Chairman Crook presented the SFFC whistleblower policy and the SFFC audit committee matrix. At the February 29, 2012 meeting for the annual grant request, the Committee heard presentations from Ms. Weston on the 2011 TSRI Audit Reports for the year ended September 30, 2011, and on TSRI and SF unaudited financial statements for the quarter ended December 31, 2011. Mr. Porter presented the contractual Monitoring and Compliance Audit, the 2011 SFFC complete single audit and the 2011 SFFC Tax Form 990. The committee approved each of the reports for presentation to the full Board of Directors. At the July 19, 2012 meeting, the Committee reviewed the TSRI and Scripps Florida unaudited financial statements for the quarter ended March 31, 2012, and agreed to engage Caler, Donten, Levine for the 2012 SFFC financial and compliance audits. On August 31, 2012, the Audit Committee met to review the June 30, 2012 unaudited financial statements and discuss the remediation of the issue raised at the annual meeting. On September 13, 2012, the Audit Committee met to discuss the remediation for the annual meeting again and also to discuss the SFFC future plans, to which a separate committee was formed to continue discussion on this matter. Mr. Gury, Dr. Dana, Ms. Misselhorn, Ms. Deutsch and Ms. Licko are members of that committee.

Reports Committee Purpose: The predominant purpose of the Reports Committee is to review, edit and approve the Annual Report before it is reviewed and approved by the SFFC Board of Directors.

Membership: Since there were no new members to appoint to this committee, Mr. David Gury served as the head of this committee during the year.

Meetings and Activities: The Reports Committee received drafts of the annual report during November 2011 and approved the annual report.

Subsection (14) (b) An accounting of the amount of funds disbursed during the preceding fiscal year to the grantee.

Disbursement Date Principal Interest TOTAL December 15, 2011 $8,196,500 $1,753,703.18 $9,950,203.18 March 15, 2012 $3,691,500 $879,899.28 $4,571,399.28 June 15, 2012 $3,691,500 $879,899.28 $4,571,399.28 September 17, 2012 $3,691,500 $879,899.28 $4,571,399.28 TOTAL $19,271,000 $4,393,401.02 $23,664,401.02

Scripps Florida Funding Corporation 21 Annual Report 2012 Since inception, the total amount disbursed to Scripps Florida is $326,151,138.16, which included interest in the amount of $40,348,293.90.

Subsection (14) (c) An accounting of the expenditures by the grantee during the fiscal year of funds disbursed under this section.

Category Amount Scientific Salaries & Benefits $7,895,788 Supplies $1,355,672 Scientific Equipment $3,635,888 External Affairs & Other Program Support $1,834,081 Project Commencement, Facilities, Administration & Capital Expenditures $5,483,648 Total $20,205,077 This schedule reflects cash expenditures charged to the grant from the State of Florida from October 1, 2011 through September 30, 2012. The expense categories set forth above reflect those used by Scripps to report grant activity to grantors. This schedule excludes unpaid commitments, unspent grant funds received of approximately $121 million (including interest income) and expenditures funded by other sources.

Subsection (14)(d) Information on the number and salary level of jobs created by the grantee, including the number and salary level of jobs created for residents of this state.

On September 30, 2012, Scripps Florida employed 474 people. Employee Count Position as of September 30, 2012 Year 9 Target Faculty 47 > 33 Scientific Staff 320 > 263 Administration 107 > 79 Current Total 474 Job Creations Target 500 In the above chart, faculty includes tenure track professors, associate professors and assistant professors. Scientific staff includes non-tenure track scientists (research faculty and staff scientists), research associates/ post-docs, lab technicians, and Scripps paid graduate students. Administration includes all other support personnel.

The job creations target number is to be measured on December 31, 2012, the end of the ninth employee hire year. SFFC may allow a downward deviation of 25% as satisfaction of the job creation deliverable. Scripps Florida management anticipates that the target head count will be met on December 31, 2012.

Scripps Florida hired 130 employees between October 1, 2011 and September 30, 2012. Of the 474 employees, 185 were Florida residents of which 111 were Palm Beach County residents at the time of hire.

Scripps Florida Funding Corporation 22 Annual Report 2012 Hired Required Salary Actual Salary in Palm Category in Florida Range Fiscal 2012 Beach Co. (as set forth in the Fiscal Residents Revised Business Plan) Residents 2012 (using CPI 9.30.12) Professors / Chairs 1 $157,021 - $375,486 $220,002 0 0 Associate Professors 3 $95,578 - $201,397 $160,826 - $200,013 0 0 Assistant Professors 4 $81,924 - $146,782 $105,019 - $126,443 0 0 Research Faculty 0 $81,924 - $301,527 n/a N/A N/A Staff Scientists 0 $61,444 - $128,575 n/a N/A N/A Research Associates 69 $38,687 - $62,581 $32,664 - $67,995 7 2 Administration* 53 $55,299 average $51,118 average** 33 22 TOTAL 130 40 24 * Administration is a combination of Scientific Support (non-Ph.D.) and Administrative Support positions. The average expected salary for this employee category is given, rather than the range that would result in combining all Administrative position salaries. An expected average salary, rather than a range, is a better representation because the various job classifications and range of salaries are broad. ** This average salary represents the amount for new hires only, not for all Administration employees. When all Administration employees are counted, the average is approximately $55,506 at September 30, 2012, which exceeds the required amount. This amount includes graduate student stipends.

Breakdown of Administration Category Hired in fiscal 2012 Average Salary Administrative Support 28 $ 59,267 Scientific Support 25 $ 41,991 TOTAL 53 $51,118 The required salary range is adjusted annually from that stated in the revised Business Plan based on increases in the CPI for the annual period. The base salary of all persons employed in a particular category falls within the range for that category, as adjusted by the cumulative change to the CPI. The CPI adjustment to salary ranges for September 2012 was 3.9%. Certain employees of Scripps Florida may receive additional compensation for assuming administrative responsibilities beyond their scientific duties. For example, a faculty member who also serves as an Associate Dean of the Graduate School will receive additional compensation for that service. The ranges set forth above do not incorporate such additional compensation.

Subsection (14) (e) Information on the amount and nature of economic activity generated through the activities of the grantee.

See Appendix 1, which is a report on the economic impact of Scripps Florida on Florida’s economy prepared by the Business Development Board of Palm Beach County in November 2012.

Scripps Florida Funding Corporation 23 Annual Report 2012

Subsection (14) (f) An assessment of factors affecting the progress toward achieving the projected biotech industry cluster associated with the grantee’s operations, as projected by economists on behalf of the Executive Office of the Governor.

See Appendix 2, which contains an assessment of factors affecting the progress toward achieving the projected biotech industry cluster prepared through information provided by state and local economic development organizations and biotech organizations.

Subsection (14) (g) A compliance and financial audit of the accounts and records of the corporation at the end of the preceding fiscal year conducted by an independent certified public accountant in accordance with the rules of the Auditor General.

See Appendix 3, which contains the audited financial statements and supplementary financial information for SFFC for the year ended September 30, 2012.

Subsection (14) (h) A description of the status of performance expectations under subsection (9) and the disbursement conditions under subsection (10).

Subsection (9) PERFORMANCE EXPECTATIONS

Subsection (9) (a) The number and dollar value of research grants obtained from the Federal Government or sources other than this state.

Between October 1, 2011 and September 30, 2012, Scripps Florida scientists were awarded 52 research grants from non-Florida sources. Those 52 grants were for a total of $49,553,238.

Subsection (9) (b) The percentage of total research dollars received by TSRI from sources other than this state which is used to conduct research activities by the grantee in this state.

For fiscal 2012, the percent of research funding from sources other than SFFC was 79%.

Subsection (9) (c) The number or value of patents obtained by the grantee.

In fiscal 2012, 22 foreign and domestic patent applications were filed. Since inception, 58 “families” of patent applications have been filed covering Scripps Florida technology, with each family containing 1-6 patent applications. The patents are still under review and no value has been assigned to them.

Subsection (9) (d) The number or value of licensing agreements executed by the grantee.

Three license agreements were executed during fiscal 2012 with respect to Scripps Florida technologies.

Scripps Florida Funding Corporation 24 Annual Report 2012 Subsection (9) (e) The extent to which research conducted by the grantee results in commercial applications.

Because of the early stage of the technology being developed at Scripps Florida and the time delay attendant to further development, no commercial applications have emerged to date.

Subsection (9)(f) The number of collaborative agreements reached and maintained with colleges and universities in this state and with research institutions in this state, including agreements that foster participation in research opportunities by public and private colleges and universities and research institutions in this state with significant minority populations, including historically black colleges and universities.

The Scripps Research Institute has developed a template entitled the Joint Cooperation Agreement (JCA) to encourage and support research collaborations with Florida institutions. Provisions are included to make it easier to collaborate on filing patents for jointly developed technologies and to share revenues from commercialized innovations. By executing these agreements in advance, TSRI expects to streamline the scientific collaboration process between Florida organizations and Scripps Florida as they work together on biomedical research. Nine Florida institutions have currently executed this formal agreement with TSRI: Florida International University, University of Florida, Florida Atlantic University, University of Central Florida, University of Miami, Florida State University, Nova Southeastern University, University of South Florida and Max Planck Florida Institute. In October 2011, FAMU faculty members visited the Scripps Florida facility.

Scripps scientists have also participated in formal scientific meetings with colleagues at Florida foundations, colleges and universities: Scripps Florida Institutional Collaborator Collaborator(s) Institution Description of Collaboration Identify inhibitors of Methione sulfoxide reductase A Peter Hodder Herb Weissbach FAU (MSRA) Primary biochemical high throughput screening assay to Peter Hodder Antonis Zervos UCF identify inhibitors of HtrA1. SAR by purchase in progress; (HtrA1) Biochemical primary high throughput screening assay to Peter Hodder Dmitriy Minond TPIMS identify exosite inhibitors of ADAM10 Cell-based High Throughput Screening Assay for Peter Hodder Nagi Ayad U Miami Inhibitors of Wee1 Degradation Mayo Clinic – Primary biochemical high throughput screening assay to Peter Hodder Malcolm Leissring Florida identify IDE inhibitors Michael Chalmers G. Wang U Miami Proteomics: MS characterization of protein complexes Tim Tellinghuisen Hengli Tang FSU Hepatitis C Virus replication in Cyclophilin Tim Tellinghuisen Eugene Schiff U Miami HCV induced hepatocellular Carcinoma 1) Modeling of ligand binding to orphan nuclear receptors Pat Griffin Stephan Schurer U Miami & partial agonist binding Advisory committee for brain tumor research and John Cleveland Dennis Steindler UF institutional collaborations on brain tumor research in the state of Florida John Cleveland James Mulé Moffitt Designing Lymph Nodes for Cancer Immunotherapy John Cleveland James Mulé Moffitt Targeting Immune Surveillance in Colon Cancer

Scripps Florida Funding Corporation 25 Annual Report 2012 Paul Kenny Barbara Krantz Hanley Center Human studies on addiction Paul Kenny Karen Dodge Hanley Center Human studies on addiction Michael Conkright A. Massimo Caputi FAU Post-translational gene regulation Michael Conkright B. Glen Barber U Miami Identification of molecules involved in innate immunity Design and synthesis of inhibitors of metallomatrix William Roush Gregg Fields TPIMS proteinases Structure determination, synthesis, and biological William Roush Arthur Edison U Florida evaluation of natural products from insects 1) Modeling of ligand binding to orphan nuclear receptors 2) Modeling partial agonist binding to PPAR gamma 2) William Roush Stephan Schurer U Miami Modeling inhibitors targeting kinases involved in regulation of cell cycle Design and synthesis of inhibitors of metallomatrix William Roush Dimitriy Minond TPIMS proteinases (MMP’s and ADAM’s) Design, synthesis and biological characterization of William Roush Nagi Ayad U Miami inhibitors of Wee1degradation Philip LoGrasso Sam Young Max Planck Florida SGK-1 viral expression for Protection in Parkinson’s Disease Philip LoGrasso Dennis Steindler U Florida JNK inhibition in glioblastoma stem cells and adult neural precursor cells Philip LoGrasso Stephan Schurer U Miami Modeling of bidentate JNK inhibitors Patricia McDonald Steve Hitchcock Envoy Therapeutics Cell based assay development to monitor GPCR activity Affymetrix arrays were run to analyze gene expression of Brandon Young Joe Doyle Envoy Therapeutics mouse brain sections to examine development and regulation Cell Based Screening assays performed on cancer cell Brandon Young Nagi Ayad U Miami lines with multiple drug treatments to analyze response to treatment options Brandon Young, Affymetrix microRNA arrays were used for discovery of Karen Dodge Hanley Center Paul Kenny biomarkers for drug and alcohol addiction. Dr. Caruso submitted a grant with the support of the Genomics Core for using Next Generation Sequencing of Brandon Young Joseph Caruso FAU buccal samples to track epigenetics in the population of South Florida Cancer cell lines were run with overexpression and Brandon Young Michael Lu U of Miami mutation of genes and comparison of the effects and pathways of each condition Sanjoy Michael Chalmers U of Miami Proteomic characterization of protein Citrullination Bhattacharya Michael Chalmers Fikret Aydemir UF Proteomics: MS characterization of protein complexes Michael Chalmers Greg Fields TPIMS MS characterization of collagen MMP interactions

Subsection (9) (g) The number of collaborative partnerships established and maintained with businesses in this state.

Scripps Florida continues to maintain collaborative relationships with four Florida based biotechnology companies: Envoy Therapeutics, Opko Health, Dyadic and Protix.

Envoy Therapeutics Envoy Therapeutics is a drug discovery company located in Jupiter, FL. Envoy was founded by scientists from Rockefeller University (NY, NY) and investors from 5AM Ventures (Menlo Park, CA)

Scripps Florida Funding Corporation 26 Annual Report 2012 and is located in Jupiter to access the high-throughput drug screening capabilities of Scripps Florida. Envoy and Scripps Florida are currently collaborating to develop screens and find drug candidates for four novel targets identified using Envoy’s proprietary technology.

Opko Health Opko Health, Inc., based in Miami, is a publicly traded healthcare company involved in the discovery, development, and commercialization of pharmaceutical products, vaccines and diagnostic products. Opko and Scripps are currently collaborating in Jupiter to develop novel diagnostic products to detect Alzheimer’s and other diseases and on the development of novel drug candidates to treat Parkinson’s Disease.

Dyadic A collaborative effort between scientists at Scripps Florida and Dyadic was established to provide a complete annotation of the genome of Dyadic's proprietary fungal organism, Chrysosporium lucknowense ("C1"). The knowledge gained from this effort is expected to facilitate further development of the C1 Host Technology as a robust platform for the discovery, development and production of various materials for medical and industrial applications. Furthermore, this collaboration promotes the development of a successful biotechnology cluster in South Florida as Dyadic International, Inc. is a global biotechnology company based in Jupiter, Florida.

Dr. Richard Lerner, past President of The Scripps Research Institute, said, "In addition to its potential contributions to Dyadic's success, this partnership for our new Palm Beach County-based research group also will benefit Scripps Florida and the broader scientific community. Because relatively few fungal genomes have been sequenced and annotated to date, our work on Dyadic's C1 host strain will increase the body of knowledge on this important class of lower eukaryotes. We expect that the information gained through the comparative genomics of fungi will provide insights into eukaryotic cellular processes, and provide important clues for the treatment of genetic, metabolic and infectious diseases."

Protix Protix is a start-up company located in Palm Beach County that has platform technology for the identification of amino-acids sites on protein targets that are required for their degradation within the cell to facilitate certain cellular regulatory processes such as mitosis. The company is utilizing this technology to identify sites on proteins that play a role in cellular processes, such as mitotic entry, which can be further exploited as targets for therapeutic and diagnostic applications in a broad range of diseases including cancer and neurodegenerative disorders. The company was founded by Scripps Florida professors Nagi Ayad and Donny Strosberg and is based on an invention made in the laboratory of professor Ayad at Scripps Florida.

Subsection (9) (h) The total amount of funding received by the grantee from sources other than the State of Florida.

Since inception, Scripps Florida has been awarded approximately $305 million from non-State fund, including state and federal agencies, such as the NIH, foundations, pharmaceutical companies and other grantors.

Scripps Florida Funding Corporation 27 Annual Report 2012 During fiscal 2012, Scripps Florida received the following grants: 1 GRANT AWARDS ($305,217,826 since inception) $ 63,615,019 2 OTHER REVENUE SOURCES $ 14,325,944 3 CONTRIBUTIONS AT NET PRESENT VALUE $ 4,846,248 4 PALM BEACH COUNTY ($210,069,431 since inception) $ 0 TOTAL $ 82,787,211 1This amount includes federal funding of $58,146,003 for fiscal 2012. 2Other Revenue Sources: Other $ 120,436 Pfizer $1,805,017 Investment Income on Florida funds $12,400,490 Total $14,325,944 3Contributions include gifts not dedicated to a specific type of research; grants typically have a dedicated area of research or are awarded to a specific scientist. Not included for FY 2012 is approximately $23 million related to recording the Briger Property. 4County funds expended to date by fiscal year: 2004 - $1,713,494, 2005 - $11,419,527, 2006 - $12,557,455, 2007 - $59,215,156, 2008 - $90,353,050, 2009 - $34,810,750, for a total of $210,069,431. Palm Beach County has completed work on the permanent facilities so it is unlikely that there will be a change in the total amount of funds expended by the County in future years.

Subsection (9) (i) The number or value of spin-off businesses created in this state as a result of commercialization of the research of the grantee.

The three Florida companies that spun off from Scripps Florida and the additional Florida company located in Jupiter to access Scripps Florida - Envoy Therapeutics - are described in Section (9)(g). No attempt has been made by Scripps to assign a value to these spin offs, with the exception of CuRNA, which was purchased by Miami-based Opko Health for $10,000,000 in February 2011. CuRNA was one of the first spin-offs from Scripps Florida and the company was based on research by Claes Wahlestedt, a Professor in Molecular Therapeutics Department of Scripps Florida.

Subsection (9) (j) The number or value of businesses recruited to this state by the grantee.

According to the Florida’s BioPulse report, the industry has grown by 42% over the past five years, with nearly 200 biotechnology companies calling Florida home. The 2012 Batelle report supports the information published in Florida’s BioPulse, finding that from 2001 to 2010 industry business establishments grew by close to 33% and job growth increased almost 19% in Florida. During the 2011 – 2012 fiscal year, the Business Development Board of Palm Beach County (“BDB’) worked with at least 17 life sciences and healthcare companies that were considering relocating or expanding in Palm Beach County. The BDB continues to work with many of those companies while seven of them established their corporate offices or expanded their facilities in Palm Beach County by the end of the 2011 – 2012 fiscal year. Please see Appendix 2 for details on these companies. To assign a numerical value to business recruitment activities is virtually impossible, but it should be noted that Scripps Florida willingly participated when tours or introductions were requested in business recruitment activities. The

Scripps Florida Funding Corporation 28 Annual Report 2012 BDB requested several visits to the Scripps Florida facility between October 1, 2011 and September 30, 2012. On August 22, 2012, Colin Easson facilitated a building tour for Dr. Anthony Boccabella, Chairman, and Dr. Charles Antzelevitch, Research Director, for the Masonic Medical Research Laboratory and Cardiac Research Institute in New York. On September 18, 2012, Barbara Noble facilitated a building tour for two site consultants representing “Project North.” The Site Consultant FAM Tour group was at the Scripps Florida facility on Thursday, March 1, 2012. Please see a detailed listing of business outreach activities in Appendix 4, “Scripps Florida Outreach Activities, including Education, Community and Business Outreach.”

Subsection (9)(k) The establishment and implementation of policies to promote supplier diversity using the guidelines developed by the Office of Supplier Diversity under s. 287.09451 and to comply with the ordinances, enacted by the County and which are applicable to this biomedical research institution and campus located in this state.

Scripps Florida has adopted the following Mission and Vision Statements for Supplier Diversity:

Mission: Scripps Florida’s Supplier Relations and Diversity Program will integrate small and diverse businesses into the procurement process - creating awareness, ownership, and an understanding of the principals of a competitive supply base. These partnerships will maximize cost savings and efficiencies within Scripps Florida’s internal processes and supply chain.

Vision: Scripps Florida recognizes the importance of a diverse supply chain and strives to develop relationships with small and diverse life science and service suppliers who can assist in achieving Scripps Florida’s biomedical research goals. Also, Scripps Florida expects its strategic suppliers to establish business opportunities for small and diverse suppliers.

The TSRI Procurement Department & Mrs. Darci Garbacz, Procurement Manager/ Supplier Diversity Coordinator, continue to pursue opportunities to partner with the diverse business community. Scripps Florida continues to participate in county, state and national diverse supplier shows. These shows help Scripps Florida to identify diverse businesses that can provide goods and services to the institute at a competitive price. Participation in these shows has resulted in partnerships with local companies that provide furniture, pipette calibrations, refrigeration services, relocation services, dry ice services, landscaping and irrigation services, building maintenance services, printing services, shredding services and more. Subsection (9) (l) The designation by the grantee of a representative to coordinate with the Office of Supplier Diversity.

Mrs. Darci Garbacz serves in this position as the Scripps Supplier Diversity Coordinator. Mrs. Garbacz represents Scripps in working with small and minority business enterprises in the State of Florida, and is actively involved in many state and local supplier diversity outreach programs.

Scripps Florida Funding Corporation 29 Annual Report 2012 Subsection (9) (m) The establishment and implementation of a program to conduct workforce recruitment activities at public and private colleges and universities and community colleges in this state which request the participation of the grantee.

Scripps Florida has extended workforce recruitment efforts to Florida’s higher education institutions throughout the state. A list of Institution Career Fair and Expositions attended by a Scripps Florida Human Resources Analyst and Recruiter is shown below.

Event Location Date Attendee Career Fair BioFlorida, Tampa FL 10/22/2011 Vanessa Paulman Career Fair FMU, Miami FL 03/22/2012 Hollie Alkema Career Fair Statewide, Orlando FL 05/09/2012 Hollie Alkema

Subsection (10) DISBURSEMENT CONDITIONS

Subsection (10)(a) Demonstrate creation of jobs and report on the average salaries paid.

See reply to Subsection (14) (d).

Subsection (10)(b) Beginning 18 months after the grantee’s occupancy of its permanent facility, the grantee shall annually obtain $100,000 of non-state funding for each full- time equivalent tenured-track faculty member employed at the Florida facility.

With 39 faculty on board and an average of 3 years for grant support, each Scripps Florida faculty has obtained about $351,000 in non-Florida funding.

Subsection (10) (c) No later than 3 years after the grantee’s occupancy of its permanent facility, the grantee shall apply to the relevant accrediting agency for accreditation of its Florida graduate program.

The re-accreditation of the Scripps Ph.D. program was successfully completed in early 2011, which is approximately two years after Scripps Florida’s occupancy of its permanent facility. The Kellogg School of Science in Technology is a bi-coastal Ph.D. program, reflecting the “one institution/two campus” makeup of The Scripps Research Institute. Owing to the larger size and earlier date of establishment of the Ph.D. program on the La Jolla campus, the reaccreditation process was handled by WASC (the Western Association of Schools and Colleges Accrediting Commission for Senior Colleges and Universities). The re-accreditation process included a specific site visit and assessment of the Scripps Florida graduate program in October, 2010, by Dr. Karen Holbrook, Senior Vice President for Research, Innovation & Global Affairs, University of South Florida, and President, University of South Florida Research Foundation. As a result of the overall review and re-accreditation process, the Kellogg School of Science and Technology—including the graduate program at Scripps Florida—received re- accreditation for a 10-year period, effective March 7, 2011.

Scripps Florida Funding Corporation 30 Annual Report 2012 Subsection (10) (d) The grantee shall purchase equipment for its Florida facility as scheduled in its contract with the corporation.

The Scripps Florida business plan requires $10 million in equipment purchases within 18 months of occupancy of the permanent facility and Scripps occupied the permanent facility on March 31, 2009, so the effective date for the $10 million required equipment purchase is September 30, 2010. The amount of equipment purchased as of September 2010 was $10.7 million, thereby meeting the required amount. The Scripps Florida Revised Business Plan also requires that $6.158 million in equipment be purchased over the last five years of funding.

Approximately $3,635,888 of equipment – acquired with State grant funds – was purchased from October 1, 2011 through September 30, 2012. In addition, $1,877,534 of equipment was purchased using non-state funds during the period from October 1, 2011 through September 30, 2012. Equipment purchases acquired with State grant funds from February 1, 2012 to September 30, 2012 totaled $3,194,912 of which $3,086,741 was acquired since the start of the eighth grant year on March 15, 2012.

Subsection (10)(e) No later than 18 months after occupying its permanent facility, the grantee shall establish a program for qualified graduate students from Florida universities permitting them access to the facility for doctoral, thesis-related research.

Scripps Florida has established a Ph.D. program in 2005 as part of Scripps’ Kellogg School of Science and Technology, well ahead of the September 2010 deadline, which was 18 months after the anticipated occupancy of the permanent facility.

Thirty (30) graduate students are currently enrolled in the Scripps Florida graduate program. Seven of the students completed Ph.D. theses during the 2011-12 academic year. Two students left the program for personal (non-academic) reasons. A total of 14 students have now completed Ph.D. degrees at Scripps Florida since the establishment of the Ph.D. program in 2005. During Fiscal 2012, Scripps Florida had another successful recruiting year for new graduate students - nine new graduate students entered the program on August 1, 2012. This past year, the Scripps Florida Graduate Admissions Committee sent representatives to on-campus recruiting events at four Florida institutions (University of Florida; Florida State University; Florida Atlantic University; and Florida International University). The Scripps Florida Graduate Admissions Committee also reviews all completed applications submitted by Florida residents, or students from Florida colleges and universities, who submit applications to TSRI’s graduate program. As the faculty ranks continue to expand at Scripps Florida over the next several years, additional efforts will be made to recruit highly qualified Florida students to the Scripps Florida Ph.D. program. Of the nine new students entering the Scripps Florida Ph.D. program in August 2012, one has an undergraduate degree from the University of South Florida in Tampa, and a second has an undergraduate degree from New College of Florida. Of the 32 graduate students in the Scripps Florida graduate program as of September 2012, at least eight will have a Florida connection (undergraduate degrees from Florida colleges and universities, or is a native Floridian who completed her/his undergraduate degree out of state).

Scripps Florida Funding Corporation 31 Annual Report 2012 Subsection (10) (f) No later than 18 months after occupancy of the permanent facility, the grantee shall establish a summer internship for high school students.

Since 2005, high school students, teachers, and university undergraduates have been provided an opportunity to work with world class scientists at Scripps Florida.

In the summer of 2012, 15 high school juniors and seniors participated in the internship program from ten different high schools. Students were placed in the Departments of: Neuroscience, Infectious Diseases, Cancer Biology, Metabolism and Aging, Molecular Therapeutics, Chemistry and The Translational Research Institute. Support for the internship program has been provided by the William R. Kenan, Jr. Charitable Trust, the Kellogg School of Science and Technology, and the BallenIsles Charities Foundation, Inc, and the interns are known as Kenan Fellows.

Scripps Florida Education Outreach Director, Ms. Deborah Leach-Scampavia, continues to work in collaboration with the Palm Beach County School District, to insure that all county high schools, principals, science teachers, science supervisors, and parents are aware of the annual high school program. Faculty presentations, undergraduate “ambassadors” from the high school program, and correspondence with department Chairs at targeted academic institutions provide information about the sponsored undergraduate program. Detailed descriptions and on-line applications can be found on the Scripps Florida Education Outreach web pages.

Special emphasis is placed on providing opportunities for students from underrepresented populations (i.e., female, minority). Since its inception in 2005, the seven year average for underrepresented participation in the Scripps Florida summer internship programs is approximately 67%.

Research Internships are awarded on a competitive basis to United States citizens or permanent residents. High school students must be beginning their junior or senior year in a Palm Beach County high school in the Fall preceding their summer internship. All applicants must have a minimum grade point average of 3.0 and be 16 years of age or older. Undergraduates must be a rising sophomore, junior, or senior and pursuing a post-secondary degree in a STEM (science, technology, engineering and/or mathematics) subject. High school students are awarded gross compensation of $8.00 per hour for the six-week summer program.

The application time period for the internship programs runs from January 1st to the last Friday in February. A completed application form, including the Statement of Goals (high school), a current academic transcript, a resume/CV and two letters of recommendation are required for application to the program. Applications are reviewed at the close of the application period by a committee composed of education outreach staff and research faculty. A rubric is used to award points for completed application, effective statement/essay (what is your interest in the summer internship program, what do you hope to learn, is there a particular faculty member you wish to work with (and why)), strength of recommendation letters (are they from STEM faculty), STEM classes completed and GPA. The highest scoring applicants are matched with Scripps Florida faculty. The final selection is made by the individual faculty members; the average pool of applicants from which faculty choose is four.

The duration of the high school program continues to be six-weeks where students are placed at the “research bench” with the faculty, post-docs, and Ph.D. students working at the cutting edge of basic

Scripps Florida Funding Corporation 32 Annual Report 2012 biomedical research. In 2012, the program culminated in a public presentation at the Scripps Florida campus where each student presented his/her research findings to Scripps researcher mentors, parents, teachers, and Palm Beach County students.

The Kenan Fellows Facebook page continues to allow Scripps to maintain contact and track alumni from the high school program. To date, 100% of the college age alumni are pursuing post-secondary degrees, 95% within STEM fields. The following is a list of some of the academic institutions Kenan Fellows now attend: UF, UCF, USF, FAU, MIT, Harvard, Princeton, U Penn, Yale, Cal Tech., Columbia, Brown, Berkeley, Stanford, Rice, Emory, U Rochester, Swarthmore, Duke and Washington Univ. (St Louis).

Additional Education Outreach Programs at Scripps Florida

The William R. Kenan, Jr. Charitable Trust, The Quantum Foundation, The Robert and Mary Pew Public Education Fund, The Berlin Family Foundation, the BallenIsles Charitable Foundation and The Gardens Mall (Forbes Company) supply funding for the following K-12 education programs developed through the efforts of Scripps Florida education outreach staff, faculty and research staff.

Scripps Florida Neuroscience Saturday Program A new program for freshmen and sophomores attending Title I high schools in Palm Beach County is being offered this academic year. Neuroscience Saturday is designed to immerse students in cutting- edge brain research, while introducing them to modern science in a way that is accessible, fun, and inspirational. The program follows the success of Scripps Florida’s Title I “Science Saturday” high school lesson (initiated in 2005). Expanding the theme to highlight basic neuroscience and neuroimaging, Scripps Florida is inviting colleagues from The Max Planck Florida Institute (MPFI) to join their researchers in this Saturday program that brings together world-class scientists and Palm Beach County high school students.

This all-day workshop explores brain function and dysfunction. How do we learn and form memories? How is the brain structured? What is a neuron and how does it work? The curriculum is designed for students in grades nine and ten with follow-on resource information for the classroom teacher. Neuroscience Saturday will take place at the Scripps Florida’s research facility in Jupiter.

Scripps Florida Introduction to Science Program This interactive middle school lesson serves to tie together the basics of Math, Chemistry, Biology, and Physics for a student age group found to be at academic risk in math and science. Using inexpensive, everyday objects, Scripps Florida Education Outreach has leveraged its Introduction to Science program to community education partners allowing a significant expansion of the middle school lesson in Palm Beach County. A Spanish language version of the lesson has been completed and will be presented at the 2012 Palm Beach County School District Science Symposium for middle school teachers.

The Scripps Florida Biotechnology Tour An up-close view of the biomedical technologies used in the battle against human diseases at Scripps Florida continues to be presented to Neuroscience Saturday high school students. The “Biotechnology Tour” provides students an opportunity to see basic biology and chemistry research laboratories. As

Scripps Florida Funding Corporation 33 Annual Report 2012 students move through the laboratories, they gain an understanding of how genomics based research and the processes of organic synthesis lead contemporary efforts in the therapeutic drug discovery process.

The Scripps Florida – Middle School Wow Chemistry An after-school activity that allows middle school classes to visit Scripps Florida for demonstrations in chemistry. Presented by Ph.D. graduate students and post docs, a series of chemistry experiments are demonstrated to the students (i.e. chemical clock reactions, vacuum experiments with eggs, freezing and shattering objects with liquid nitrogen, and exploding hydrogen balloons!). Student interaction is encouraged.

The Scripps Florida High School Career Panel In an after-school interactive panel with Scripps Florida Ph.D. graduate students and post-doc fellows, Scripps scientists share experiences about their undergraduate and graduate careers and the type of research they are conducting at Scripps. The intent is to demystify the higher education/science process, encourage relationships, and answer student questions. The panel concludes with a tour of the Scripps Florida research laboratories.

Scripps Florida Middle School Genomics with Kenan High School Fellows A new program was beta tested during the 2011/2012 academic year that allowed high school students from the summer intern program to visit Palm Beach County middle schools. Students shared their love of science, their experience as a summer researcher at Scripps and a lesson in genomics (geared for the middle school classroom). The high school students were enthusiastic role models for the younger students and well received by the classroom teachers.

CELLebrate Science Day with Scripps Florida Since 2009, Scripps Florida researchers have hosted an annual public science day, sponsored by and held at the Gardens Mall in Palm Beach Gardens, Florida. More than 100 Scripps Florida research faculty, post doctoral fellows, graduate students and staff interact with thousands of Palm Beach County students, parents, teachers and interested community members - all excited to learn about the science of Scripps and to have an opportunity to meet research scientists.

Five fun, interactive science booths dot the mall grand court, each themed around Scripps Florida’s research and technology:  “Chemistry” – interactive chemistry demonstrations, including an electronic periodic table  “Technology” – engineering and robotics  “Science of Safety” – try on a lab coat, goggles and respirator and see how safe science is done in the lab  “Model Organisms” – what do zebra fish, fruit flies, worms and slugs tell us about human biology and disease  “Disease Biology” – what is the difference between a viral and bacterial infection and how do Scripps scientists study and use each to understand disease

Scripps Florida also uses their Cellebrate day to provide a public opportunity for Palm Beach County School District middle and high school Science Fair winners to display their winning posters before moving on to the Florida state competition.

Scripps Florida Funding Corporation 34 Annual Report 2012 Scripps Florida Undergraduate Internships

In addition to high school internships, Scripps Florida provides internship opportunities for a variety of undergraduate students.

Sponsored Undergraduate Internships In the summer of 2012, ten undergraduates participated in the sponsored internship program, five from Florida schools and five from schools out of the State. Undergraduates are awarded gross compensation of $10.00 per hour for the ten-week summer program.

Summer Undergraduate Interns In addition to the sponsored summer undergraduate initiative on the Scripps Florida campus, Scripps Florida attempts to accommodate as many students as possible who contact them for research opportunities during the summer months. Thirteen undergraduate students from nine universities sought opportunities/incentives to return to Florida to further their research experience in the summer of 2012.

FAU Wilkes Honors College Program In 2005-06 Scripps Florida established an intern program for FAU Honors College students to perform research in the laboratories of Scripps Florida faculty members. The students can receive FAU academic credit or a stipend (if research funds are available from the Scripps Florida faculty member) for research performed during the school term or summer months. During the fiscal year, seventeen FAU undergraduate students participated in research internships at the Scripps Florida research facility.

Palm Beach State College (PBSC) PBSC offers two degree programs in biotechnology in response to the community need for research technicians and associates. Students enrolled in the PBSC program can receive academic credit for additional experience in the laboratory. To help students gain this experience, internships have been made available at the Scripps Florida facility as space has been available. Three PBSC biotechnology students participated in this program.

Undergraduate Travel Award The undergraduate poster competition awards the top three students an opportunity to submit their winning research poster to a national conference of the intern and faculty mentor’s choice. Expenses are paid for registration, travel, and housing for the intern and their faculty advisor to present their poster.

Subsection (10) (g) No later than 3 years after occupancy of the permanent facility, the grantee shall establish a research program for middle and high school teachers.

Scripps has established a professional development science workshop for secondary science teachers, as well as, a workshop for middle school teachers. In addition, Scripps Florida offers summer internships to secondary science teachers.

Scripps Florida High School Teacher Summer Internship Program Continued support from the William R. Kenan, Jr. Charitable Trust, has allowed Scripps Florida Education Outreach to continue to expose teachers to current laboratory techniques and procedures, provide information on a variety of contemporary issues in basic biomedical research, create ties and

Scripps Florida Funding Corporation 35 Annual Report 2012 linkages to working scientists who can assist them in curriculum development, and create opportunities for teachers to share information and knowledge with their peers.

High school science teachers in the Palm Beach County School District conduct basic biomedical research in a laboratory under the supervision of a Scripps Florida scientist. The program emphasizes the scientific process, research planning, bench experience, experimental design, data analysis and interaction with laboratory personnel. As an adjunct to their day-to-day responsibilities, participants are required to attend specially designed seminars throughout the course of the summer. In addition to the intensive, hands-on six-week summer program, teachers are expected to use the laboratory experience as a springboard to create opportunities in discovery-based learning for their students, effect change in their classrooms and serve as a resource for other educators. Each participant gives a presentation and writes a scientific abstract on his/her project at the end of the summer.

To extend information about the summer program to all PBC eligible high school teachers, the Scripps Florida Education Outreach Director, Ms. Leach-Scampavia, supplied program information flyers to each of the PBC high schools Principals for display at the schools and gave an information presentation about the summer intern program to a meeting of the high school science supervisors. In addition, working through the PBC school district’s science coordinator, flyers were e-mailed to each of the science teachers in the district.

Research internships are awarded on a competitive basis to United States citizens or permanent residents teaching science at the secondary level in Palm Beach County. The application time period for the internship program is from January until March. Teachers are awarded gross compensation of $20.00 per hour for the six-week program (not to exceed 240 hours). After receipt of completed packages and due date expiration, the PBC science coordinator, the Scripps Florida education administrator and several scientists reviewed each application package. Scripps Florida faculty mentors then reviewed and selected from the pool of interns the “best candidates” for the summer teacher internship.

Scripps Florida Secondary and Middle School Teacher Workshops Scripps Florida is directing greater efforts to address the needs of the classroom science teacher by establishing Teacher Workshops in basic science, math and laboratory skills. The programs offer direct interaction with the bioscience researchers at Scripps Florida and provide greater professional development opportunities for pre-service and in-service middle and high school science teachers in a supportive engaging environment. Institutes are designed around curriculum units that integrate lessons, activities and laboratory-based biological and chemical experiments designed by research scientists at Scripps Florida. Portability of the lessons allows teachers to leverage the institute curriculum to their own classrooms during the course of the school year.

The programs provide opportunities for teachers from all of the secondary and middle schools within the Palm Beach County school district to attend the Teacher Workshops. Through its partnership with the school district, Scripps Florida emphasizes teacher recruitment from schools with limited resources in rural and urban Palm Beach County, particularly in areas with large underrepresented and disadvantaged student populations.

Scripps Florida Funding Corporation 36 Annual Report 2012 Subsection (10) (h) No later than 18 months after occupancy of the permanent facility, the grantee shall establish a program for adjunct professors.

Many current Scripps Florida faculty have received adjunct faculty appointments with the University of Florida, University of Miami and/or Florida Atlantic University. Such adjunct appointments are intended to provide a mechanism for graduate students enrolled in Florida research universities to collaborate with, to be co-mentored by, and to perform research in the laboratories of a Scripps Florida faculty member.

A mechanism has been established for faculty members at Florida institutions who have established collaborative research programs with Scripps Florida faculty to be appointed to an Adjunct Professor position. The process is initiated by a Scripps Florida faculty member who submits a nomination to his/her department chair. If the chair concurs, the chair submits the nomination to the Office of the President for review and approval.

Current adjunct faculty: Dr. Chris Liang of Xcovery in West Palm Beach, FL – Adjunct Associate Professor, Molecular Therapeutics Dr. Andrew Hodge of BioMotion Institute in Jupiter, FL – Adjunct Professor, Metabolism and Aging Dr. Samuel Young of Max Planck Florida Institute in Jupiter, FL – Adjunct Assistant Professor, Neuroscience Dr. Jason Christie of Max Planck Florida Institute in Jupiter, FL – Adjunct Assistant Professor, Neuroscience Dr. James Schummers of Max Planck Florida Institute in Jupiter, FL – Adjunct Assistant Professor, Neuroscience Dr. Richard Flavell of Yale University in New Haven, CT – Adjunct Professor, Infectology Dr. Stephen Hitchcock of Envoy Therapeutics in Jupiter, FL – Adjunct Professor, Molecular Therapeutics Dr. Reddy Moola of Opko Health in Miami, FL – Adjunct Associate Professor, Chemistry Dr. Michele A Miller, Chief Veterinary Officer of the Palm Beach Zoo in West Palm Beach, FL – Adjunct Professor, Infectology

Subsection (10) (i) No later than 6 months after commissioning its high throughput technology, the grantee shall establish a program to allow open access for qualified science projects.

Scripps Florida initiated the “Access to Technologies” program in January of 2006 to invite scientists from Florida universities and other academic research institutions to use state-of-the-art screening technologies at Scripps Florida’s facilities in Jupiter for qualifying projects. A seventh “Core” platform is now available at the Scripps Florida facility that combines basic research with advanced technology.

Access to Technologies Scripps Florida was created to interface cutting-edge high throughput technologies with pioneering research programs relevant to current medical needs in human diseases. One of its key goals is to

Scripps Florida Funding Corporation 37 Annual Report 2012 develop dynamic relationships with Florida institutions to foster a knowledge-based economy that will transcend traditional barriers to moving scientific discoveries into the clinic. Florida scientists who may not have these technologies available at their respective institutions are encouraged to open the links to learn more about these core technologies and opportunities to access them (http://www.scripps.edu/florida/technologies/). A list of collaborative Florida researchers can be found in Section (9)(f) - Collaboration with Florida Colleges and Universities.

Macromolecular X-ray Crystallography Facility The macromolecular x-ray crystallography core facility of Scripps Florida offers state-of-the-art equipment and resources to scientists inside and outside of the Scripps Florida campus by providing crystallographic analysis of chosen biological macromolecules.

The core facility offers and operates as a full service core by performing protein crystallization, x-ray diffraction data collection (both in-house and at various synchrotron sources) and processing, phasing, crystallographic refinement, model building, and visualization. The structural data obtained by the core provide scientists with a wealth of information including but not limited to biological functions, 3D- folding, ligand binding (small molecule or protein), or mutational effect of target macromolecules of their interest.

This past year, the core facility researchers produced seven publications in major research journals and acquired data for an additional three manuscripts. The core facility researchers supported six intramural laboratories for their on-going grant researches. The researchers were also actively involved in preliminary studies for grant applications of these laboratories. During this period, the core facility researchers produced and deposited multiple macromolecular structures.

Genomics Core The Scripps Florida Genomics Core was established to enable access by Scripps Florida and external investigators to the latest technologies for gene expression analysis and high-throughput genotyping. These technologies allow for interrogation and subsequent comparison of the role genetics play in disease state at the global level, or at specified locations in the genome. Gene expression analysis provides a profile of active and inactive genes in a given tissue sample or cell type. The technologies used in the Genomics Core allow for a wide range of cost effective options for discovery on multiple platforms.

In a continued effort to support scientific progress using cutting edge technology, the Genomics Core researchers at Scripps Florida worked with multiple investigators external to Scripps Florida. The researchers collaborated with Claes Wahlestedt, Nagi Ayad and Clara Penas from the University of Miami in projects studying gene expression and cell based screening. Local startup companies Envoy Therapeutics and Ocean Ridge Biosciences have also made use of Scripps Florida genomics core technologies. The researchers at this core performed several experiments for each of these entities and collaborated for more than two years with the University of Miami and over three years with Envoy Therapeutics and Ocean Ridge Biosciences. The genomics core appreciates the role and opportunity they have in serving the local scientific community and look forward to continuing the relationship and scientific advances they have developed to date.

The Cell Based Screening Core Researchers in the Cell-Based Screening Core leverage high-throughput technologies towards a systematic description of the function of genes encoded by the human genome, and a more

Scripps Florida Funding Corporation 38 Annual Report 2012 comprehensive understanding of the genetic basis for human disease. The CBS group provides Scripps investigators, as well as select outside collaborators, with access to genome-wide collections of cDNAs and siRNAs that can be used to interrogate cellular models of signal transduction pathways and phenotypes.

The Proteomics Core The Proteomics Core researchers at Scripps Florida examine the expression and action of proteins and other gene products. Its faculty and staff focus on such questions as how proteins are modified by cells in certain diseases. In particular, the scientists concentrate on developing and applying the techniques of mass spectrometry for discovery and quantitative proteomic experiments. The core also supports the small molecule mass spectrometry needs of the institute and collaborators.

The Flow Cytometry Core Flow cytometry measures and analyzes the characteristics of single particles, normally cells, as they move in a stream and are passed through a laser. Thousands of cells can be analyzed by a flow cytometer in a single second. Among the measurements derived from flow cytometry are the size, relative fluorescence and complexity of the particle.

The Nuclear Magnetic Resonance Core Nuclear magnetic resonance, known as NMR, uses the magnetic properties of certain nuclei to study molecular structure. A wide variety of information can be gathered using NMR including protein and nuclei acid structure and function. In early 2011, Scripps Florida added a new state-of-the-art 700 MHz instrument to the NMR core, complementing the two 400 MHz instruments already on site. While the two 400 MHz instruments are used primarily for small molecule (chemistry) studies, the new 700 MHz instrument will be used primarily by biologists for studying structure and interactions among biomolecular components (proteins, RNA, etc.). The three machines run 24 hours a day, 365 days of the year. By connecting these highly sensitive instruments to the Internet via a proprietary Scripps Florida server, scientists can access the data produced from their office or the laboratory.

High Throughput Screening Core Description Background High Throughput Screening (HTS) is a drug-discovery process widely used in the pharmaceutical industry. It leverages automation to quickly assay the biological or biochemical activity of a large number of drug-like compounds. It is a useful for discovering ligands for receptors, enzymes, ion- channels or other pharmacological targets, or pharmacologically profiling a cellular or biochemical pathway of interest. Typically, HTS assays are performed in “automation-friendly” microtiter plates with a 96, 384 or 1536 well format.

Capabilities: The Lead Identification group at Scripps Florida has set-up a state-of-the art HTS operation to support Scripps’ intramural HTS efforts. This Core has both HTS and compound management automation, and expertise in adapting biological and biochemical bench-top assays into high-throughput screens.

HTS users: Hitchcock, S., Ph.D. Envoy Therapeutics Leissring, M., Ph.D. Mayo Clinic, Jacksonville, FL Fields, G., Ph.D. TPIMS

Scripps Florida Funding Corporation 39 Annual Report 2012 Minond, M., Ph.D. TPIMS Cudic, P., Ph.D. TPIMS Weissbach, H., Ph.D. FAU Zervos, A., Ph.D. UCF Liao, D., Ph.D. UF Potter, J., Ph.D. U Miami Ayad, N., Ph.D. U Miami Westerheide, Sandy University of South Florida Choe, Keith University of Florida Kima, Peter University of Florida Reisman, David University of Florida

Behavior Core The Behavior Core at Scripps Florida provides state-of-the-art equipment and software for measuring rodent behavior. All behavioral rooms are fully equipped and supplied. Many of the behavioral tasks are completely automated, with software providing control over hardware and trial protocols. Standard protocols for the behavioral tasks have been developed by the Director; expertise for the development of custom protocols is available. The behavioral experiments can be fully conducted by Behavior Core staff, or individual labs can utilize the rooms and equipment for their own experiments. Training and consultation are provided free of charge. Behavior Core resources are also available to non-Scripps Florida scientists through collaboration with the Director.

The Behavior Core officially opened for business in June of 2011. In the past year, the Behavior Core resources and personnel were included on at least four Scripps Florida faculty grant applications (one of which has already been awarded funding), and data collected in the Behavior Core has been included in three publications so far.

Center for Diabetes and Metabolic Diseases The Center for Diabetes and Metabolic Diseases is a multidisciplinary center designed to enhance the research capabilities of faculty at TSRI whose research focus is in the area of diabetes and metabolic diseases. The Center is designed to enhance interactions between faculty and other researchers in this area so as to provide greater opportunities for fruitful collaborations that may yield new and improved therapies for diabetes, cardiovascular disease, and obesity as well as other metabolic diseases.

History: The Scripps Research Institute has a long history of critical discoveries in the area of diabetes and metabolic diseases. As TRSI was expanded to Scripps Florida, several new faculty were recruited whose research is focused on development of new and improved therapies for metabolic diseases. The Center was established by Dr. Burris in late 2011 to coordinate and enhance the metabolic research capabilities of TRSI. After its approval by the President of TRSI, Dr. Marletta, the Center first focused on consolidating key equipment that was already in place at Scripps Florida. In the second phase, the Center focused on expansion of metabolic research capabilities by acquisition of addition critical equipment and hired Dr. Kanzantzis as a staff scientist to oversee the core laboratories. Future phases will focus on further expansion of research capabilities as well as establishing key services that will be available to all metabolic disease researchers at TRSI to help enhance their productivity. The Center currently operates two key laboratories at Scripps Florida.

Scripps Florida Funding Corporation 40 Annual Report 2012

Researchers can apply for access to Scripps expertise through the Scripps “Access to Technologies” program.

Subsection (10) (j) Beginning June 2004, the grantee shall commence collaborative efforts with Florida public and private colleges and universities, and shall continue cooperative collaboration through the term of the agreement.

See the reply to Subsection (9) (f).

Subsection (10) (k) Beginning 18 months after the grantee occupies the permanent facility, the grantee shall establish an annual seminar series featuring a review of the science work done by the grantee and its collaborators at the Florida facility.

External Seminars External seminars are part of the institute series, inviting prominent researchers from national and international institutions to speak. The seminars serve as a major foundation for creating knowledge- and technology-sharing opportunities, team building, and collaborations among biomedical researchers between Scripps Florida, Florida, and other research and academic institutions and companies. The sessions are open to interested professionals within the Scripps Florida and Florida scientific communities. October 6, 2011 Speaker: Dr. Marc Reitman National Institutes of Health (NIH) Lecture - "BRS-3 Agonists for the Treatment of Obesity" October 13, 2011 Speaker: Dr. Ron Emerson Vanderbilt University Lecture - "Prader-Willi Syndrome, RNA Editing and the Tyranny of Evidence" October 20, 2011 Speaker: Dr. David Lawrence University of North Carolina Lecture - "Organic Chemistry at the Edge of Biology: Taming Cell Behavior with Light Responsive Molecules" October 27, 2011 Speaker: Dr. Jiyong Hong Duke University Lecture – “Natural Product Synthesis at the Interface of Chemistry and Biology November 3, 2011 Speaker: Dr. Olke Unlenbeck Northwestern University Lecture - "tRNA Tuning in Translation" November 10, 2011 Speaker: Dr. Sandy Schmid The Scripps Research Institute, California Lecture - "Dynamin: The Brains and Brawn of Clathrin-Mediated Endocytosis” November 17, 2011 Speaker: Dr. Richard Flavell Yale University School of Medicine Lecture - "Inflammasomes and homeostasis in the intestine and beyond”

Scripps Florida Funding Corporation 41 Annual Report 2012 November 29, 2011 Speaker: Dr. M.G. Finn Professor The Scripps Research Institute, California Lecture - "Engineered Virus-Like Particles for Medicine and Catalysis" December 1, 2011 Speaker: Dr. Christine Keating The Pennsylvania State University Lecture - "Polymer solutions as a model cytoplasm in primitive artificial cells based on lipid vesicles" December 8, 2011 Speaker: Dr. Donna Blackmond The Scripps Research Institute, California Lecture - "Mechanistic Studies in Asymmetric Organocatalysis: A New Paradigm for Stereocontrol" December 15, 2011 Speaker: Dr. Stuart Schreiber Broad Institute of Harvard & MIT Lecture - "Relating genetic features of cancers to cancer dependencies using small-molecule probes” January 12, 2012 Speaker: Dr. Paul Fox Cleveland Clinic Lecture - "The GAIT system: A gatekeeper of inflammatory gene expression” January 16, 2012 Speaker: Dr. Victor Garcia-Martinez University of North Carolina, Chapel Hill Lecture – “In vivo Evaluation of Novel Approaches to Prevent, Treat, and …Cure?? HIV/AIDS” January 19, 2012 Speaker: Dr. Alcino Silva University of California Los Angeles (UCLA) Lecture - "Light activated memories: Molecular, cellular and systems mechanisms of memory allocation" February 2, 2012 Speaker: Dr. John Clardy Harvard Medical School Lecture - "Bacterial Communications and the Discovery of New Molecules” February 9, 2012 Speaker: Dr. P. Jeffrey Conn Vanderbilt University Medical Center Lecture - "Allosteric Modulators of GPCRS as a Novel Approach to Treatment of CNS Disorders” February 23, 2012 Speaker: Dr. William Carlezon Harvard University Lecture - “Roles of CREB and dynorphin in dysregulation of motivation” February 29, 2012 Speaker: Dr. Seth Grant University of Edinburgh School of Molecular & Clinical Medicine Lecture - "Postsynaptic MAGUK Associated Signaling Complexes underlie the organization and evolution of behavior” March 8, 2012 Speaker: Dr. Nevin Lambert Georgia Health Sciences University

Scripps Florida Funding Corporation 42 Annual Report 2012 Lecture - "Organization of G protein signaling proteins in live cells" March 15, 2012 Speaker: Dr. Amy Herr University of California, Berkeley Lecture - "Talking about a Revolution: Microfluidic Integration for Next- Generation Protein Analysis" March 22, 2012 Speaker: Dr. Kristin Baldwin The Scripps Research Institute, California Lecture - "Stochastic diversity among induced pluripotent stem cells and neurons" March 29, 2012 Speaker: Dr. Jeremy Nicholson Imperial College, London Lecture - "Host-microbiome metabolic and signaling interactions in human health and disease" April 5, 2012 Speaker: Dr. Akira Sawa Johns Hopkins University School of Medicine Lecture - "Is schizophrenia a systemic disorder?: a multifaceted translational approach" April 19, 2012 Speaker: Dr. Shu-ou Shan California Institute of Technology Lecture – “Molecular mechanism of co-translational protein targeting” April 27, 2012 Speaker: Dr. Peter Vogt The Scripps Research Institute, California Lecture: “Oncogenic signaling in the PI3K pathway” May 3, 2012 Speaker: Dr. Ailong Ke Cornell University Lecture – “Conformation dynamics in SAM-III translational riboswitch and RNA interference in Type I-C CRISPR-Cas system” May 10, 2012 Speaker: Dr. Robert Batey University of Colorado Boulder Lecture – “Structural insights into biological riboswitches and their application to synthetic biology” May 24, 2012 Speaker: Dr. Leslie Vosshall Howard Hughes Medical Institute Lecture – “The Genetics of Innate Behavior: Smell, Sex, and Eating” September 20, 2012 Speaker: Dr. Tom Muir Princeton University Lecture: “Chromatin: An Expansive Canvas for Chemical Biology” September 27, 2012 Speaker: Dr. Gregory Macleod University of Texas Health Science Center at San Antonio Lecture: What does Drosophila motor nerve terminals tell us about presynaptic bioenergetics”

Collaborative Seminars Collaborative seminars feature prominent Florida-based speakers from the academic, biotechnology or pharmaceutical communities and focus on topics within the broad fields of biomedical science,

Scripps Florida Funding Corporation 43 Annual Report 2012 advanced technologies applied to biomedical research, drug discovery, and energy. They serve as a major foundation for creating knowledge- and technology-sharing opportunities, team building, and collaborations among biomedical researchers between Scripps Florida, Florida, and other research and academic institutions and companies. The sessions are open to interested professionals within the Scripps Florida and Florida scientific communities. November 28, 2011 Speaker: Mario Stevenson, PhD Chief, Division of Infectious Diseases Professor of Medicine, University of Miami Lecture - “Strategies for HIV Eradication” December 6, 2011 Speaker: Jay P. McLaughlin, PhD Associate Member, Torrey Pines Institute for Molecular Studies Lecture - "Functional consequences of opioid receptor ligand-directed signaling" January 20, 2012 Speaker: Aaron Aponick, Ph.D. Professor, Department of Chemistry, University of Florida Lecture - “Catalytic Dehydrative SN2' Reactions: Mechanistic and Synthetic Implications” March 30, 2012 Speaker: Kailiang Jia, PhD Assistant Professor, Department of Biological Sciences, Florida Atlantic University Lecture - "ATP production: the key to understand the role of autophagy in apoptosis and aging" April 13, 2012 Speaker: Robert C. Speth, PhD Department of Pharmaceutical Sciences School of Pharmacy Nova Southeastern University Lecture - "New developments in the renin-angiotensin system: Holding two ACEs and a Wild Card"

Summer Intern Seminars The weekly summer intern series, an adjunct to summer intern day-to-day responsibilities, features faculty members from Scripps Florida. High school and college undergraduate interns attend specially- designed seminars throughout the course of the summer. Each seminar highlights basic science principles and the research focus/application efforts of the Scripps Florida biology, chemistry, and Core laboratories. July 4, 2011 William Ja, Ph.D. Assistant Professor, Department of Metabolism and Aging TSRI- Florida Lecture - “Drosophila as a Model Organism” July 12, 2011 Roy Smith, Ph.D. Professor and Chair Department of Metabolism and Aging TSRI- Florida Lecture - “Understanding Alterations in Whole-body Metabolism”

Scripps Florida Funding Corporation 44 Annual Report 2012 July 19, 2011 Paul Kenny, Ph.D. Associate Professor, Molecular Therapeutics TSRI- Florida Lecture - “Neurobiological Mechanisms of Drug Addiction” June 5, 2012 Brian Paegel, Ph.D. Assistant Professor, Department of Chemistry TSRI-Florida Lecture – “Discovering Drug Discovery” June 12, 2012 Patrick Griffin, Ph.D. Professor and Chair, Department of Molecular Therapeutics TSRI-Florida Lecture – “Nuclear Receptors” June 19, 2012 Tim Tellinghuisen, Ph.D. Associate Professor, Department of Infectology TSRI-Florida Lecture – “Weird Biology: Host/Virus Coevolution” June 26, 2012 Matthew Gill, Ph.D. Associate Professor, Department of Metabolism and Aging TSRI-Florida Lecture – “C elegans as a Model Organism”

Subsection (10) (l) Beginning June 2004, the grantee shall commence collaboration efforts with the Office of Tourism, Trade, and Economic Development (OTTED) by complying with reasonable requests for cooperation in economic development efforts in the biomed/biotech industry. No later than July 2004, the grantee shall designate a person who shall be charged with assisting in these collaborative efforts.

Scripps Florida has designated Mr. Douglas Bingham as its designee to assist the Department of Economic Opportunity (“DEO”), nee OTTED, regarding collaborative economic development efforts between Scripps and DEO.

See Appendix 4, “Scripps Florida Outreach Activities,” for a detailed listing of Scripps Florida outreach activities, including education, community and business outreach.

Scripps Florida Funding Corporation 45 Annual Report 2012 APPENDIX 1

Subsection (14) (e)

Information on the amount and nature of economic activity generated through the activities of the grantee.

The Economic Impacts of Scripps Florida on Florida's Economy

October 1, 2011 - September 30, 2012

Prepared by the Business Development Board of Palm Beach County, Inc. for the Scripps Florida Funding Corporation

The Economic Impacts of Scripps Florida on Florida's Economy

October 1, 2011 - September 30, 2012

Introduction

This analysis is designed to fulfill the requirements of Subsection 14(e) of the 2011 Scripps Florida Funding Corporation Annual Report to the State of Florida Governor and Legislature.

Purpose: Estimate the economic impacts of the activities of the Scripps Florida facility on the State of Florida during its eighth fiscal year of operation that covers the period October 1, 2011 to September 30, 2012.

The analyses for the first four fiscal years were conducted by Enterprise Florida, Inc. (EFI), while the fifth, sixth, seventh, and eighth fiscal years analyses were conducted by the Business Development Board of Palm Beach County, Inc. (BDB), and this analysis will follow a similar format as that established by EFI to address Subsection 14(e) of the Scripps Florida Funding Corporation's (SFFC) Annual Report to the Florida Governor and Legislature. This analysis was conducted by the staff of the BDB at the request of SFFC. It is based on information and data provided to the BDB from SFFC and uses the IMPLAN economic impact model, as was used in prior analyses by EFI and the BDB. The purpose of this analysis was to estimate the quantifiable economic impacts of Scripps Florida's activities in the State of Florida during its ninth fiscal year in operation, based on the expenditures made by Scripps Florida or its partners, Palm Beach County and Florida Atlantic University.

Scripps Florida Funding Corporation 46 Annual Report 2012 This analysis makes no attempt to project future economic impacts or benefits on the State of Florida or Palm Beach County, nor does it attempt to estimate or project non-quantifiable benefits or impacts to Florida or Palm Beach County.

As previously stated, this report follows a similar format as the one established by EFI in initial analyses. As such, this report will include sections that provide information on economic impact analysis and the model, IMPLAN, used to estimate impacts, the methodology used to conduct this analysis, results of the IMPLAN model, and a brief description of the impacts that this analysis does not attempt to estimate.

Economic Impact Analysis Using IMPLAN

Economic impact analysis estimates the changes in economic output (gross domestic product), employment, personal income (labor compensation and proprietors' income), property income (rents), and tax revenues that result from changes in demand for products or services in a given study area (referred to as an event). Impacts can be measured for zip codes, counties, states, or the entire country.

Due to the importance of Scripps Florida to the State of Florida, as being a world class research institute that has positioned Florida as an emerging focal point for the life sciences, this analysis will estimate the economic impacts to the entire State of Florida resulting from Scripps Florida operations. However, the majority of the benefits from Scripps Florida are likely concentrated in Palm Beach County and the surrounding region.

The IMPLAN model is a recognized industry leader in the United States and is used by many organizations from federal agencies to private consultants for economic impact analysis.

This analysis uses many of the default settings and features of the standard IMPLAN model. In accordance with the circumstances stipulated by Scripps Florida and in keeping with the format of prior analyses by EFI, this analysis reports the economic impacts of Scripps Florida in two different categories.

First, the IMPLAN model quantifies four categories of impacts: employment; personal income; economic output (gross domestic product); and tax revenues. Employment refers to the number of full- time jobs created in the study area due to the presence of Scripps Florida. Personal Income includes all forms of labor compensation and proprietors' income that are injected into the economy of the study area as a result of Scripps Florida. Economic Output (Gross Domestic Product) is the increased amount of total economic output in the study area that results from the change in employment and value added created by the presence of Scripps. Lastly, tax revenues refer to the additional fiscal revenues generated by state and local governments (such as sales taxes, property taxes, and other excise taxes and fees) resulting from the increased economic activity due to Scripps.

Second, there are three rounds of effects that are analyzed. Each round is classified as a separate category or effect. The first round produces the direct effects, which include the economic impacts to the four categories stated above that result from operations of Scripps Florida itself, such as the number of jobs created by Scripps to work in the new facility or the change in employment by the companies hired by Scripps to provide goods or services. Next come the indirect effects, which include interindustry

Scripps Florida Funding Corporation 47 Annual Report 2012 changes in demand resulting from the operations of Scripps or the goods and services required by companies hired by Scripps for the operations. Lastly, the induced effects are measured, which are the increases in economic activity stemming from the expenditures by the households of the employees hired by Scripps or the companies used for the operations or businesses indirectly influenced by the presence of Scripps.

The presence of direct effects, indirect effects, and induced effects result from what is referred to as the multiplier effect. The multiplier effect occurs, because every time a purchase is made in any sector of the economy, additional spending is created through direct, indirect, and induced effects. This happens over and over many times. Essentially, when one person or company spends money, it enables another person or company to spend money and so on, creating a chain of new spending by other people or companies.

Previous analyses estimated a third category that distinguished between the Scripps Florida's Operational Impacts and Facility-Related Impacts. However, this analysis focuses only on the operations, since construction was completed prior to the beginning of the fiscal year under analysis.

Scripps Florida's Operational Impacts. These impacts result from the operations of Scripps Florida during its ninth fiscal year. The operational impacts include Scripps payroll expenditures (for scientists and professional and support staff), expenditures for laboratory equipment, office supplies, information technology, utilities, and various other business services and operational expenses.

Methodology

The results of an economic impact analysis are reliant upon the primary data and assumptions used in the model. In this analysis, the BDB has relied on data provided by the Scripps Florida Funding Corporation. The data provided include all known expenditures by Scripps Florida and its partners (Palm Beach County and Florida Atlantic University) during the fiscal year October 1, 2011 to September 30, 2012.

All expenditures data obtained were input into the IMPLAN model, with the appropriate NAICS-based IMPLAN industry codes for each line item expenditure. The line items were then aggregated based on their features to achieve the quantifiable impacts mentioned in the previous section.

No data on actual job creation by Scripps Florida's activities were provided, and therefore no employment data were input into the IMPLAN model. However, expenditures for salaries and benefits were provided by Scripps, and these were included in the model using the IMPLAN industry code for payroll compensation, which allowed the model to estimate direct employment levels throughout the fiscal year. Therefore the estimated employment impacts generated by IMPLAN should be interpreted as the average annual full-time employment created in the State of Florida in various occupations and companies due to the presence of Scripps Florida, and may in fact not be the actual employment of Scripps Florida or any other entity affected by the presence of Scripps at any time during the fiscal year analyzed.

Since this analysis is focused on the single fiscal year of October 1, 2011 to September 30, 2012, the IMPLAN model does not attempt to differentiate between recurring and one-time impacts. As stated

Scripps Florida Funding Corporation 48 Annual Report 2012 previously, Scripps moved into its permanent facilities during the 2008-2009 fiscal year, so any jobs or other impacts associated with the construction and design of Scripps permanent facility will likely diminish or disappear entirely in future years. Additionally, impacts associated with the operations of the Scripps facility can recur each year. However, this study is only concerned with impacts in fiscal year 2011-12.

This analysis relied upon the default assumptions built into the IMPLAN model. This analysis used the assumptions in the IMPLAN model to determine the amount of expenditures and activity that affected the State of Florida due to the presence of Scripps Florida by estimating the amount of goods and services that are demanded from domestic sources versus sources in other states. The data used for the IMPLAN model's assumptions are derived from US Federal Government databases.

Fiscal impacts were also estimated by the IMPLAN model, which differentiates between federal and state and local tax revenues. This analysis maintains the state and local tax revenue impacts established in the previous analyses by EFI. In previous analyses, EFI assumed that all tax revenues obtained through vehicle licensing fees go to the State of Florida, whereas property taxes are paid to local governments. All sales and use tax revenue goes to Florida.

The primary expenditures data provided by Scripps Florida Funding Corporation (SFFC) for use in the IMPLAN model are provided in the table below.

Scripps Florida - Related Expenditures, SFFC's FY 2011-2012 Amount Expenditure Line Item $7,895,788 Scientist Salaries & Benefits $1,355,672 Supplies $3,635,888 Scientific Equipment $1,834,081 External Affairs & Other Program Support $9,313,139 Salaries & Benefits (non-scientist) $829,813 Professional Services $841,573 Supplies $3,135,244 Purchased Services $249,924 Business Meetings $231,580 Subscriptions $1,806 Other $1,316,473 Allocations from California $4,484,466 Facilities (Insurance, Utilities, Maintenance) $440,007 Other Capital Expenditures -$15,360,377 Administrative Expenses Recovered from Third Parties (IDC) $20,205,077 Total Scripps-Related Expenditures in FY 2011-2012 Source: Scripps Florida Funding Corporation

Scripps Florida Funding Corporation 49 Annual Report 2012 IMPLAN Model Results

The table below summarizes the results of the IMPLAN economic impact model that was run for Scripps Florida, SFFC's fiscal year 2011-2012. The results that follow illustrate the total economic impacts to the State of Florida due to the presence of Scripps Florida in Palm Beach County, based on the data provided by the SFFC.

The Economic Impacts of Scripps Florida on the State of Florida, SFFC's FY 2011-2012 Type of Impact Direct Indirect Induced Total Employment Impact 59 27 203 289 Personal Income Impact $8,036,392 $1,822,773 $13,770,667 $23,629,832 Output (Gross Domestic Product) $11,867,572 $3,103,619 $24,365,219 $39,336,411 Tax Revenues $799,569 $85,994 $1,856,996 $2,742,559 Breakdown of Tax Revenues between State & Local Government State of Florida $264,272 $28,499 $607,476 $900,247 Local Governments (County & Municipal) $535,297 $57,496 $1,249,520 $1,842,313 Note: The estimated totals may not add up exactly due to rounding off to the nearest whole dollar or employee.

Each of the impact types are summarized below.

Employment Impact. The presence of Scripps Florida assisted in sustaining an estimated 289 jobs statewide. It is important to note that those jobs were not necessarily created during the FY 2011-2012, where some may have carried over from previous fiscal years, while some were also created during the fiscal year of the study. Therefore, it would not be correct to add results from previous fiscal years' analyses to this one. It is also important to note that many of the scientists at Scripps Florida get outside funding for salaries and staff that do not appear in this analysis, therefore there are likely more jobs that are sustained by Scripps Florida than what appear in this analysis.

Direct. This analysis reports the total direct impacts. During the SFFC's Fiscal Year 2011-2012, Scripps Florida had a total direct employment impact of 59 full-time jobs.

Indirect and Induced. An additional 230 jobs were supported throughout Florida as a result of indirect and induced effects from Scripps Florida's operations.

Income Impact. The total personal income impact of Scripps in the SFFC's ninth fiscal year was $23,629,832.

Direct. The activities of Scripps Florida and the companies it hired for services were directly responsible for contributing to an influx of $8,036,392 of personal income into Florida's economy.

Indirect and Induced. The multiplier effect led to an additional $15,593,440 in personal income in the Florida economy.

Scripps Florida Funding Corporation 50 Annual Report 2012 Output (Gross Domestic Product) Impact. Scripps Florida added $39,336,411 to Florida's gross domestic product (GDP).

Direct. The operational activities of Scripps Florida directly contributed to adding $11,867,572 to Florida's GDP.

Indirect and Induced. The multiplier effect led to the addition of $27,468,838 to Florida's GDP.

Fiscal Impact. The total estimated fiscal revenues to State and local governments due to the presence of Scripps Florida in its ninth fiscal year amounted to $2,742,559.

Direct. The operational activities of Scripps Florida directly contributed to an estimated $799,569 in tax revenues to state and local governments.

Indirect and Induced. The multiplier effect from the activities of Scripps Florida led to an additional $1,942,990 in estimated tax revenues for state and local governments.

The approximate breakdown between estimated tax revenues for the State of Florida and the local governments was:

State Taxes. The estimated tax revenues that went to the State of Florida as a result of Scripps Florida were $900,247.

Local Taxes. The estimated tax revenues that went to the local governments (county and municipal) in Florida as a result of Scripps Florida were $1,842,313.

Economic Impacts Outside of the Model

This analysis has focused on the economic impacts of Scripps Florida on the economy of the State of Florida during SFFC's ninth fiscal year of activities, October 1, 2011 - September 30, 2012. It is important to note that the IMPLAN model can only estimate the quantifiable economic impacts, such as employment, personal income, output, and tax revenues, to a geographical area based on changes in demand for goods or services caused by an event. Therefore, the model is not capable of measuring the qualitative economic benefits of an event, such as the presence of Scripps Florida, that could positively affect the economy of Florida. While the qualitative benefits are important, they may only become evident after a number of years or may influence quantifiable impacts in future analyses.

Scripps Florida Funding Corporation 51 Annual Report 2012 APPENDIX 2

Subsection (14) (f)

An assessment of factors affecting the progress toward achieving the projected biotech industry cluster associated with the grantee’s operations, as projected by economists on behalf of the Executive Office of the Governor

This subsection was completed with information provided by: Workforce Alliance, Inc. is a nonprofit corporation chartered by the State of Florida. The organization operates a workforce development system in Palm Beach County that is responsive to the needs of both business customers and job seekers. Together with leaders from business, government, education and community agencies, Workforce Alliance links businesses in need of qualified employees with individuals seeking employment opportunities. Workforce Alliance operates three Career Centers (South, Central and West) and two Professional Placement Network locations in Palm Beach County. The organization administers an annual budget of approximately $20 million.

The Business Development Board of Palm Beach County, Inc. (“BDB”) is a public-private partnership established in 1982 to be the official economic development organization for Palm Beach County. It is a non- profit organization that is funded in part by the Palm Beach County Board of County Commissioners and in part by private corporate members. BDB is the official partner of Enterprise Florida, Inc. in Palm Beach County.

Palm Beach State College (“PBSC”) is Florida's first public community college. Established in 1933, PBSC has been recognized as a premier two-year institution, lauded for achievement at the local, state and national level. PBSC has over 48,000 students enrolled in over 100 programs of study. Currently, PBSC offers an Associate in Science degree, Associate in Arts degree and a College Credit Certificate in Biotechnology. PBSC has four campuses in Palm Beach County: Belle Glade, Boca Raton, Lake Worth and Palm Beach Gardens. Plans for a fifth PBSC campus to be built in Loxahatchee Groves were recently announced.

Town of Jupiter (“TOJ”) is located in northern Palm Beach County and is the home of Scripps Florida’s permanent facility. In 2006, the town established a $3 million economic development fund in support of an interlocal agreement with Palm Beach County. TOJ also established an advisory board, which provides recommendations regarding the distribution of the funds. The Board oversees funding for the Northern Palm Beaches including Mangonia Park, Riviera Beach, Jupiter, North Palm Beach, Palm Beach Gardens and Lake Park.

BioFlorida is Florida’s bioscience industry association, operating as a 501(c)(6) not-for-profit organization. Their mission is to represent and advocate for the state’s biotechnology, pharmaceutical and medical device industries. Founded in 1997 as a means to unite and support a small group of entrepreneurs, today the organization represents a broad range of companies and institutions in various sectors of the bioscience industry. Membership within the organization also includes dozens of partner organizations, service providers and suppliers committed to supporting the industry.

Institute for Commercialization of Public Research (“Institute”) was founded in 2007 as a non-profit organization. The Institute is Florida’s One-Stop-Shop for investors and entrepreneurs who seek to

Scripps Florida Funding Corporation 52 Annual Report 2012 identify new opportunities based on technologies developed through publicly-funded research, and is focused on new company and job creation based on research conducted at Florida’s universities and research institutions. The Institute collaborates with its research partners, working with promising technologies, and providing company formation and support services as well as seed capital to qualified companies. During this reporting period, the Institute identified over 90 new company projects that are being supported towards commercialization and growth. The Institute also received a $10M appropriation and developed and launched the Seed Capital Accelerator Program (SCAP) which is now well underway. Through this program the Institute provides “repayable upon liquidity” loans ranging between $50,000 - $300,000 to Florida companies that must match the state funding with private investment capital. The SCAP program helps bridge funding gaps faced by early-stage companies, enabling them to reach critical development milestones and raise additional equity or debt financing when needed. Fourteen companies were approved for funding, with six actually receiving their funds during this reporting period. The Institute continues to administer the Florida Research Commercialization Matching Grant Program, which during fiscal year 2009/10 awarded $2.7M to 13 companies across the state. Although all available funds have been granted, the Institute continues to collect progress reports from the 13 grantees to monitor and report on their progress.

The Research Park at Florida Atlantic University is the only state university affiliated research park in South Florida, and is home to 22 high tech, high wage companies and five support organizations. In addition, the Research Park at Florida Atlantic University operates the premier Technology Business Incubator (TBI) in the region which is managed by a very successful regional economic development engine, Enterprise Development Corporation of South Florida (EDC). Also housed in the TBI, New World Angels, a structured angel investor group and the Institute for the Commercialization of Public Research, a clearing house for Florida’s technology transfer offices and other publicly funded research institutes.

Enterprise Florida, Inc. (“EFI”) is a public-private partnership serving as Florida's primary organization devoted to statewide economic development. The organization’s mission it to facilitate job growth for Florida's businesses and citizens leading to a vibrant statewide economy. EFI accomplishes this mission by focusing on a wide range of industry sectors, including clean energy, life sciences, information technology, aviation/aerospace, homeland security/defense, financial/professional services, manufacturing and beyond. In collaboration with a statewide network of regional and local economic development organizations, EFI helps to improve Florida's business climate, ensuring the state's global competitiveness.

The following is a summary of contributions by these organizations which contributed to the development of the biotech cluster in Florida and in particular South Florida in 2011-2012.

Workforce Alliance, Inc. 315 South Dixie Hwy., Suite 102 (561)340-1061 West Palm Beach, FL 33401 www.pbcalliance.com

During the period October 1, 2011 to September 30, 2012, Workforce Alliance worked with life science companies, industry organizations and other stakeholders to promote both the awareness of this targeted cluster and the growth of the talent pool needed to help these businesses grow in a highly competitive

Scripps Florida Funding Corporation 53 Annual Report 2012 marketplace. They accomplished this by building a talent pipeline, providing training grants and placing qualified talent into available positions.

Specifically, Workforce Alliance has: 1. Provided $35 million in training grants to life science companies to facilitate job placement for those being trained. 2. Established a pilot cell for the Emerging Leaders Network at Scripps Florida. Six months later, they met with the cell team to rework the structure to improve the cell’s reach and impact. The next event is planned for January, 2013. 3. Served as co-chair for local BioFlorida chapter (the chapter was recently reorganized after the chapter was split in two due to geographic considerations; local chapter now serves Palm Beach, Martin, St. Lucie and Indian River Counties). A new leadership team steers the chapter’s efforts. 4. Recruited, screened and assessed applicants for life science companies seeking talent. An outreach program promotes the posting of job openings from Palm Beach County life science companies onto Employ Florida. 5. Collaborated with BioFlorida, LST Hub, BAS Florida, Scripps Florida and others on local life science events, such as the September 20th CELLS event at Scripps Florida. 6. Used regional events to introduce local talent to businesses. These introductions help inform and educate businesses as to the talent available locally and are critical to making talent aware of local companies and career opportunities 7. Served as member of the Industry Advisory Council Executive Committee for the Banner Center for Life Sciences. The Banner Center is an initiative of Workforce Florida and is housed at Palm Beach State College.

Business Development Board of Palm Beach County 310 Evernia Street (561)835-1008 West Palm Beach, FL 33401 www.bdb.org

During the 2011-2012 fiscal year, the Business Development Board (BDB) maintained its strong links to the life science industry through its Life Sciences Strategic Steering Group (LSSSG), participation in associations and events such as BIO 2012, BioFlorida, The Employ Florida Banner Center for Life Sciences at Palm Beach State College, Life Sciences South Florida, and the Life Science Technology HUB (LST HUB). By striving to increase its outreach to the life science industry, the BDB is able to ensure that emerging issues that could adversely affect Palm Beach County’s attractiveness to the life sciences industry would be addressed.

The BDB’s LSSSG was restructured during last fiscal year to include a new chair and a new set of goals that would assist the BDB in its efforts to develop and grow the life sciences industry cluster in Palm Beach County. Early in 2011, the LSSSG was given seven new, primary goals: (1) assist in the outreach to life sciences companies at trade shows, specifically BIO; (2) the creation and expansion of a life sciences recruitment prospect pipeline database; (3) the development of a Life Sciences Industry Report; (4) development of a new Life Sciences marketing collateral piece; (5) developing and maintaining a Life Sciences Assets Map (map of existing life sciences companies in PBC); (6) providing assistance to the Banner Center for Life Sciences; and (7) the development of a Life Sciences Industry Focus Lunch Event to take place within the first quarter of the new fiscal year.

Scripps Florida Funding Corporation 54 Annual Report 2012 During the 2011-2012 fiscal year, the BDB’s LSSSG accomplished all of the tasks that were set for the group during the previous fiscal year. First, the BDB held its first Industry Focus Quarterly Luncheon in November 2011 that focused on the Life Sciences industries in Palm Beach County. 15 life science companies from Palm Beach County representing biotech, medical device manufacturing and pharmaceuticals displayed company information, and ten life sciences companies presented company information before an audience of over 350 people, ranging from general businessmen to elected officials. The event provided greater awareness of the industry cluster and highlighted the successes in Palm Beach County since the arrival of Scripps Florida and the Max Planck Florida Institute, illustrating the return on the investment made by the Palm Beach County Board of County Commissioners, various municipalities, and the State of Florida.

The LSSSG also met several times throughout the fiscal year to monitor the development of the industry in Palm Beach County. By the end of the 2011 – 2012 fiscal year, the LSSSG: completed the Industry Report that was submitted to the Palm Beach County Board of County Commissioners; created an updated life sciences industry cluster map for Palm Beach County; completed a new life sciences cluster marketing collateral and updated the LSSSG’s webpage on the BDB’s website.

BDB staff attended the BIO 2012 convention in Boston, MA in June 2012. The trend of this trade show/convention has been toward more economic development officials being represented on the floor of the convention as opposed to scientists and corporate leaders and thus, the BDB chose not to have an exhibit on the floor, but instead partnered with Enterprise Florida to be one of the sponsors and of the Governor’s Breakfast, as well as arranging meetings with companies in advance and during networking events at the conference from many different countries and regions of the US to discuss the possibility of relocation or expansion into Palm Beach County. The BDB continues to seek more effective ways of reaching its target audience for 2013 and beyond.

BDB staff took part in many events of the Southeast Florida Chapter of BioFlorida.

In the fiscal year 2011 – 2012, the BDB continued its participation in three industry and educational associations and initiatives in the life science industry. First, BDB staff serves as the current Chair of the Statewide Marketing Committee for the Employ Florida Banner Center for the Life Sciences at Palm Beach State College in Palm Beach Gardens, which provides the BDB the opportunity to continue to attend the meetings of the Industry Advisory Council (IAC) for the Banner Center. One of 11 industry- specific Banner Centers throughout the state, the Banner Center for Life Sciences is Florida’s industry- driven resource for workforce education and training. Its courses cover the areas of medical devices, pharmaceutical and biotechnology, and were developed in direct response from industry focus groups and advisement from the IAC.

Another initiative that the BDB staff has participated on in the fiscal year is the Life Sciences South Florida (formerly Life Tech Florida) regional initiative. The Life Sciences South Florida initiative is a consortium of all public and private universities along the Interstate 95 corridor from Miami to Port St. Lucie, and it involves academia, research institutes, and the biotechnology industry in southeast Florida. This consortium provides an overarching umbrella for the entire Southeast region. The intent of this initiative is to increase cooperation and collaboration in life sciences research in the region and includes Florida Atlantic University, Palm Beach State College, Florida International University, the Scripps

Scripps Florida Funding Corporation 55 Annual Report 2012 Research Institute, Max Planck Florida Institute, The Research Park at Florida Atlantic University, and other economic development organizations, universities, and colleges in the South Florida region.

BDB staff also regularly attends the LST HUB monthly networking events in Palm Beach Gardens. The LST HUB continues to grow organically in support of the life sciences and technology industries in Palm Beach County. BioFlorida partnered with the group soon after its formation in order to extend its reach across the state. LST HUB was created by two professionals who moved to Florida from San Diego with the intent to grow the cluster specifically in Palm Beach County. LST HUB is modeled on a San Diego organization credited with the growth of the high-tech and life science cluster there. In Palm Beach County, LST HUB is gathering resources such as investors, business and marketing professionals, and integrating them with life science and technology professionals, students, and educators with the goal of creating an ecosystem for the growth of new companies and jobs. Attendance at these monthly meetings provides another opportunity for the BDB to gain more contacts and insight in the life science industry in Palm Beach County and the surrounding areas.

The BDB continues to witness an interest from life science companies that are considering relocating, starting, or expanding in Palm Beach County. During the 2011 – 2012 fiscal year, the BDB worked with at least seventeen life science and healthcare companies that were considering relocating or expanding in Palm Beach County. The BDB continues to work with many of those companies while seven of them have established their corporate offices or expanded their facilities in Palm Beach County by the end of the 2011 – 2012 fiscal year.

Company Location # of Jobs ArchieMD Boca Raton 10 jobs JFK Medical Center Palm Beach Gardens and Boynton Beach 120 jobs Mobile Help Boca Raton 50 jobs Modernizing Medicine Boca Raton 40 jobs Nicklaus Children’s Healthcare Foundation Palm Beach Gardens 20 jobs Signet Diagnostic Riviera Beach 30 jobs Somahlution, Inc. Jupiter 25 jobs

Throughout Palm Beach County the county and municipal governments have maintained their interest in developing a sustainable life science cluster and the BDB has engaged with many partners to ensure that infrastructure is developed to create an attractive environment for entrepreneurs to establish their life science (and other) companies while creating high paying jobs and creating new inventions to better the human condition. In particular, BDB staff continued to support the staff of the Town of Jupiter in its efforts to nurture the life sciences around Scripps Florida and Max Planck. The Town established a $3M fund in 2006 and has loaned money to companies in the industry after an application process and review by an Advisory Board. BDB has worked with staff to analyze applications and provide economic impact analyses of the plans.

Scripps Florida Funding Corporation 56 Annual Report 2012 Palm Beach State College Eissey Location - 3160 PGA Boulevard (561)207-5059 Palm Beach Gardens, FL 33410 www.palmbeachstate.edu

Biotechnology Program Palm Beach State College (PBSC) offers an Associate in Science degree, Associate in Arts degree and a College Credit Certificate in Biotechnology. The Biotechnology Program is embarking on its seventh year with over 117 biotechnology majors. The program continues to work closely with industry and institutional partners to deliver an innovative work-force specific curriculum. The faculty is comprised of experienced scientists involved in academic research or local bioscience companies. Scripps Florida scientists serve as Adjunct Professors in the Biotechnology Program and provide valuable input regarding curriculum development and internships. PBSC continues its paid internship program where students complete a research project at one of many regional research or industrial laboratories. The program currently offers over 30 different internship opportunities for its graduates and has successfully placed graduates in full-time employment. The program was awarded a grant from the National Science Foundation to implement outreach programs to increase student enrollment and retention in biotechnology programs and careers.

Town of Jupiter Economic Development Fund 210 Military Trail (561)741-2214 Jupiter, FL 33458 www.jupiter.fl.us

In 2006, the Town of Jupiter established a $3 million economic development fund in support of an interlocal agreement with Palm Beach County. The fund's purpose was to support economic development and growth that generates jobs for north county residents. Following the establishment of the fund, Jupiter's Town Council also established an advisory board, which provides recommendations regarding the distribution of the funds. The Board oversaw funding for the Northern Palm Beaches (Mangonia Park, Riviera Beach, Jupiter, North Palm Beach, Palm Beach Gardens, Lake Park). The eight member Board met monthly to review applications and monitor progress on companies which were supported by the fund. This year the fund: provided the local share match for the State’s QTI program in the amount of $30k for Somahlution, aka “Project Cube” during the recruitment process; guaranteed a loan in the amount of $350k to Akron Biotechnology, LLC (“Akron”); and, finally, the Town of Jupiter dissolved the Biotech Board this fiscal year because the initial $3m allocation had been expended and the Town voted to expand the use of the funds that had been returned with interest.

$30k in Qualified Target Industry Tax Refund (“QTI”) for Somahlution, a.k.a “Project Cube” Project Cube involved the expansion of an existing Florida business as well as the relocation of a company and its headquarters from another state. The headquarters and R&D company recently acquired the existing Florida business and is looking to expand that entity as well as relocate the headquarters and R&D company.

Project Cube is a privately-held, development-stage life science company focused on advancing the science of organ and surgical conduit transplantation. Project Cube’s technologies are designed to maintain and enhance the function of donor organs and vascular conduits, and thus reduce post- transplant complications and improve long-term outcomes and transplant patients’ quality of life. Dr.

Scripps Florida Funding Corporation 57 Annual Report 2012 Tod Fairbanks, a member of the Town’s Biotech Fund Advisory Board, evaluated research data from the company and verified that the company’s approach and technologies are scientifically sound.

The existing Florida company that was acquired by Project Cube is a contract analytical laboratory, a Clinical Research Organization (CRO), that provides a wide range of professional services to support pharmaceutical, nutritional and specialty chemical companies. The location of the CRO in Jupiter will not only afford local life science companies the opportunity to utilize local contract lab services, but will result in lab infrastructure that is not readily available in Jupiter.

Project Cube is currently headquartered in Fargo, North Dakota and has six employees. The combined company is attempting to co-locate the headquarters for Project Cube and the existing Florida company in an area with a growing life science community, which is the reason that Jupiter is being considered as a potential location for the consolidated business. Other sites being evaluated by “Project Cube” include Fargo, North Dakota; New Brunswick, New Jersey; and Scranton, Pennsylvania and the Florida Research Park (located west of Jupiter in unincorporated Palm Beach County).

It is anticipated that the company would create twenty-five (25) new jobs over three years with average wages at or exceeding 150% of the county average wage. In addition to the new jobs, the company plans to make the selected location its headquarters and anticipates at least $3.5 million in capital expenditures over five years.

The QTI program is designed to encourage the creation of high-skill jobs and encourage the growth of corporate headquarters and other targeted industries. The QTI incentive is available for companies that create high wage jobs in targeted high value-added industries. QTI provides a tax refund of $3,000 per new job created in Florida through the expansion of existing Florida businesses or the location of new ones. A business is eligible for a $1,000 per job bonus if it pays over 150% of the average wage in the area. Since QTI is a community-based program, it requires a 20 percent match from the community in which the company plans to locate or expand. This ensures that the local area is willing to support the business over the long term.

$350k loan guarantee to Akron Biotechnology, LLC (“Akron”) Akron has not yet located in Jupiter due to the lack of the appropriate facility. However, the Town is partnering with the Florida Atlantic Research & Development Authority (FARDA) and Endeavor Strategic Investments (ESI, which received a loan guarantee last year) to develop a 60,000 s.f. facility in Jupiter that will accommodate Akron and others. The loan guarantee will further Akron’s manufacturing and development efforts relating to its existing line of cell culture and cell biology products.

Akron's labs and corporate offices are currently located in Boca Raton, Florida. The company is a leader in manufacturing and supplying cell culture and cell biology products aimed at the biopharmaceutical and biotechnology markets for cell therapy discovery and approval. These products are normally produced in research grade and Akron currently manufactures these products at its own facility in South America and through other contract manufacturers throughout the United States. Akron is seeking to provide these products in a grade that would allow these products to be sold at a higher price and used by a broader range of customers. In order to do so, Akron is planning to establish a manufacturing facility in Jupiter and funding provided by this loan guarantee will help to

Scripps Florida Funding Corporation 58 Annual Report 2012 establish this manufacturing facility. According to statements made by Akron, they will be the first company in the United States to provide these products manufactured under the quality standards for sale in the pharma-biotech industry.

Akron was a tenant in the incubator laboratory facilities at Palm Beach State College (PBSC) until March 2012. Akron’s continued presence in Palm Beach County would enable it to continue offering internships to Palm Beach State College, Keiser University and FAU students as well as adding another important service component to enhance the biotech infrastructure in Jupiter.

The Biotech Fund Advisory Board’s recommendation to the Town Council for approval of this $350,000 loan guarantee was made based upon Akron Biotechnology, LLC being an existing and established company with a solid performance record. Akron is making substantial progress toward the development of marketable drug development components that will provide them with a stable, long term source of revenue. To date, Akron has hired five employees and anticipates having ten employees in the Jupiter location by the end of 2013. Additionally, Akron’s primary owner is Dr. Claudia Zylberberg, who has been very active in Palm Beach County’s bioscience activities. Having Dr. Zylberberg in closer proximity to Jupiter can only add value to Jupiter’s continued economic development efforts in the bio-technology sector.

BioFlorida 525 Okeechobee Blvd, Ste. 1500 (561) 653-3839 West Palm Beach, FL 33401 www.bioflorida.com

As the voice of Florida’s bioscience industry, BioFlorida represents more than 250 member companies and research organizations in the biotechnology, pharmaceutical and medical device fields. Members include biomedical R&D companies, medical device manufacturing, clinics and hospitals, academia, government and non-profit organizations, and industry services/products.

BioFlorida upholds Florida’s vibrant bioscience community by providing advocacy, business development and networking forums. The association’s seven regional chapters spanning the state hold quarterly networking events with scientific presentations showcasing Florida research and developments. These events facilitate business and financial partnering opportunities, research collaborations and industry advancements. There are seven committees - nominating, program & events, membership, marketing, government affairs, business growth, annual conference planning - and two networks – emerging leaders and Florida medtech - in which BioFlorida members may participate.

BioFlorida Accomplishments/ Milestones for 2011/2012:  Annual Conference In October 2011, BioFlorida held its 14th Annual Conference in Tampa with over 570 individuals in attendance. The conference brought together 500+ professionals from across Florida, the Southeast and the nation to discuss major trends and issues, including topics related to product development, scientific research, business development, financing and public policy.  BioFlorida Institute for Science Education & Workforce Development In 2010, BioFlorida’s Board of Directors approved the formation of the BioFlorida Institute as a 501(c)(3) foundation to build on the state’s existing infrastructure and services to the bioscience industry. Dr. Harry Orf from Scripps Florida served as chairman of the BioFlorida Institute

Scripps Florida Funding Corporation 59 Annual Report 2012 which offers science workshops in conjunction with local school districts, continuing education programs, teacher and student internships, CEO roundtables, an industry library and resource center, and business planning workshops.  New Board Member Dawn Johnson, senior director of scientific operations for the Scripps Florida, has joined the BioFlorida Board of Directors.  CELLS Event BioFlorida partnered with Scripps and other organizations to produce the CELLS event (Connecting Emerging Leaders in the Life Sciences) at Scripps Florida during National Postdoc Appreciation Week in September 2012. Over 200 people attended, including postdocs, faculty and staff from Scripps, FAU, Torrey Pines and VGTI and leaders from the region's bioscience business community.  New Network BioFlorida launched the Emerging Leaders Network with its first chapter at Scripps Florida. The purpose of this group is to connect Scripps scientists, postdocs and young professionals with the business community.

BioFlorida reports the following rankings for Florida from the 2012 Batelle Report: Rankings among Top 10 bioscience employment states: • #2 for number of bioscience companies (5,102) • #6 for bioscience employment (78,062) • #1 in bioscience distribution companies (2,982) • #2 in medical device companies (498) • #4 in drugs & pharmaceuticals companies (155)

Growth rate among Top 10 bioscience employment states: • 2001-2010: #1 in growth rate for drugs & pharmaceuticals companies (+74%) • 2001-2010: #1 in growth rate for drugs & pharmaceuticals employment (+22%) • 2007-2010 (recession): #1 in growth rate for drugs & pharmaceuticals companies (+48%) • 2001-2010: #1 in growth rate for medical device companies (+51%) • 2007-2010 (recession): #1 in growth rate for medical device companies (+32%)

Florida Institute for the Commercialization of Public Research 3651 FAU Blvd., Suite 400, Boca Raton, FL 33431 (561)368-8889 747 SW 2nd Ave, Suite 258, Gainesville, FL 32601 www.florida-institute.com

Seed Capital Accelerator Program In 2011, the Institute announced the availability of funding for early-stage technology and life sciences companies that have spun out of Florida’s universities and research institutions. The Seed Capital Accelerator Program bridges funding gaps for companies whose technology was developed through publicly-funded research, and helps them attract additional investment capital through a required match against funds provided by the state. The Institute developed and launched the program in 2011, providing “repayable upon liquidity” loans to qualified companies, helping them to make the transition from research and development to commercialization and be better positioned to raise debt or equity financing as they grow. Funding ranges between $50,000 and $300,000 per company, and proceeds are used for product marketing and sales, hiring of key personnel, and other activities related to early-stage

Scripps Florida Funding Corporation 60 Annual Report 2012 company development. Companies that received funds this reporting period include: eTect, Gainesville; GLG Pharma, Jupiter; Insero Health, Miami; Nanophotonica, Orlando &Gainesville; Ocoos/AdvTravl, Ocala; and Shadow Health, Gainesville. With several others approved for funding, and several new applications pending, it is anticipated that all available funds will be committed by Spring 2013.

Florida Research Commercialization Matching Grant Program With $3 million in funding provided during the 2009/10 Legislative Session, the Institute developed and launched the Florida Research Commercialization Matching Grant Program (FRCMGP), awarding grants to thirteen innovation-based companies in ten cities across Florida with projects ranging from the life sciences to advanced materials to energy. The winners included: Accelogic, LLC, Weston; ArchieMD, Inc., Boca Raton; ATGI, Stuart; Captozyme, Gainesville; Convergent Engineering, Gainesville; Eclipse Energy Systems, Inc., St. Petersburg; Keystone Synergistic Enterprises, Inc., Port St. Lucie; OptiGrate Corporation, Orlando; RINI Technologies, Inc., Oviedo; Self-Determined Health, Inc., Celebration; Sinmat, Inc., Gainesville; Structural Composites, Inc., Melbourne; and WiOptix, Inc., Gainesville. Although all available funds have been granted, the Institute will continue to collect progress reports and monitor progress for five years.

Research Park at Florida Atlantic University 3651 FAU Boulevard, Suite 400 (561)416-6092 Boca Raton, FL 33431 www.research-park.org

In October 2011 MobileHelp established its corporate and R&D HQ in the Research Park at Florida Atlantic University. MobileHelp researches, designs, markets and designs a medical device designed to enable patients to remain independent in their own homes longer by equipping them with emergency communication devices that are portable. The company is currently collaborating with FAU’s College of Engineering to create algorithms that can detect falls in patients and preemptively get them care.

The Research Park at Florida Atlantic University is a founding member of Life Sciences South Florida (http://lifesciencessf.org/) that aims to create a collaborative, cross county life sciences corridor for companies and research institutes to be attracted to for investment and location purposes.

Florida Women’s Care established its headquarters in the Research Park at Florida Atlantic University in order to be proximate to FAU’s research capacity. FWC found it important to analyze its clinical data in order to better inform healthcare and research policy. FWC manages more than 1000 OB-GYN practices around the state of Florida.

In April 2012, Modernizing Medicine located its corporate and R&D HQ in the Research Park at Florida Atlantic University in order to be better situated for collaboration with FAU’s faculty and students. In September 2012, Modernizing Medicine employed more than 90 people in its enterprise of revolutionizing electronic medical records using an interactive iPad/Android app. The company has been ranked as the fastest growing technology company in South Florida by the “South Florida Business Journal”, and was awarded the Wayne Huizenga Start Up Award by the “South Florida Business Journal”. The company has also been honored as one of the 50 companies to watch in Florida by GrowFL.

Scripps Florida Funding Corporation 61 Annual Report 2012 The Board of Directors of the Research Park have begun discussions and analysis of the feasibility of creating a new campus for the Research Park in close proximity to FAU’s campus in Jupiter, FL and to be in a position to assist with the commercialization of technologies that might emerge from FAU, Scripps Florida and the Max Planck Florida Institute.

Enterprise Florida, Inc. 800 N. Magnolia Ave., Suite 1100 (407)956-5600 Orlando, FL 32803 www.eflorida.com

For EFI’s report, please see the attachment, “EFI Life Science Marketing Initiatives 11-12.”

Scripps Florida Funding Corporation 62 Annual Report 2012 APPENDIX 3

Subsection (14) (e)

A compliance and financial audit of the accounts and records of the corporation at the end of the preceding fiscal year conducted by an independent certified public accountant in accordance with rules of the Auditor General.

Please see the attachment, “SFFC Audit Report 2012.”

Scripps Florida Funding Corporation 63 Annual Report 2012 APPENDIX 4

Detailed Listing of Scripps Florida Outreach Activities, including Education, Community and Business Outreach.

Education Outreach Scientists at Scripps Florida have offered education outreach programs to Palm Beach County’s middle and high school science teachers and students since 2004. Over the past seven years, Scripps Florida researchers have participated in over 300 Education Outreach activities that serve to excite students and teachers about science and math. The programs described in Subsections (10)(f) and (10)(g) define the goals of Scripps Florida’s K-12 education programs: to work directly with students and teachers, to help develop instructional materials, and to contribute to science literacy in Palm Beach County and the State of Florida. Since initiating its outreach program, Scripps Florida has been invited to speak about its efforts in science education with Florida State Department of Education, Florida Council of 100, State University System of Florida Board of Governors, and STEM Florida. To date, more than eight thousand students, teachers, and community members of Palm Beach County have participated in the Scripps Florida Education Outreach programs.

Following is a list of Scripps Florida Education Outreach activities from the past fiscal year: 4-Oct-11 Douglas Kojetin Florida A&M University/ 5-Oct-11 Thomas Creson Mentored HS intern Kelsey Kruse 20-Oct-11 Paul Kenny Invited speaker University of North Carolina, Chapel Hill, NC Deborah Leach- Scampavia, Jeremy Pyle, Briana Weiser, Ryan 25-Oct-11 Career Panel - grad students for visiting high school Stowe, Christine Crumbley, Rosie Albatram 1-Nov-11 Paul Kenny Invited speaker University of Washington, Seattle, WA Deborah Leach- Scampavia, Louis 2-Nov-11 St. Marks Science Fair Scampavia, Tim Spicer, Cathy Trivigno Deborah Leach- 4-Nov-11 Scampavia, Jeremy Pyle, Middle School Genomics Lesson - Royal Poinciana High School Interns The Rendina Family Foundation/Speaker - Brain Cancer: Novel 8-Nov-11 Derek Duckett Therapies Fighting Back, Jupiter, FL Speaker and Q&A; Nova Southeastern University Chemistry Club; 10-Nov-11 Patrick Griffin Davie, FL D. Phinney, C. Haga, S. Phinney lab participation LST HUB and BASFlorida event, Palm 16-Nov-11 Boregowda, V. Beach State College Bioscience and Technology Complex, Palm Krishnappa Beach Gardens, FL 17-Nov-11 Paul Kenny Invited speaker Emory University, Atlanta, GA 23-Nov-11 Damon Page Thesis Committee, Graduate Student MIT, Boston, MA Deborah Leach 29-Nov-11 Quantum Foundation Neuroscience Meeting with Max Planck Scampavia

Scripps Florida Funding Corporation 64 Annual Report 2012 Deborah Leach- 1-Dec-11 Scampavia, Rosie Introduction to Science - Spanish Albarran Deborah Leach- 2-Dec-11 Roosevelt Middle School Advisory Board Scampavia Jupiter Academy Middle School, "What do scientists do?" Career 7-Dec-11 Katrin Karbstein presentation on invitation from the science teacher Deborah Leach- 7-Dec-11 Scampavia, Jeremy Pyle, The Gardens Mall - Cellebrate Science Advisory Meeting Barbara Noble Deborah Leach 13-Dec-11 U.S. Imaging / United Way Meeting on STEM Education Scampavia 1-Jan-12 Brian Paegel Lecture at Florida Atlantic University, Boca Raton, FL Deborah Leach- Summer Intern application, selection and placement - High School 1-Jan-12 Scampavia, Jeremy Pyle and Undergrad Deborah Leach - Scampavia, Jeremy Pyle, InSPIRE - Secondary Science Teachers Professional Development 1-Jan-12 Society of Research Workshop Fellows 3-Jan-12 Sathya Puthanveettil FIT Intern training Intern for credit (Jacqueline Strivelli) - Palm Beach State College, 3-Jan-12 Donald Phinney Palm Beach Gardens, FL Deborah Leach- 6-Jan-12 Curriculum Meeting with P.B. Co. Sch Dist Kristen Perez Scampavia, Tim Spicer Mentored intern, Rachael Tocco, from Palm Beach State College 9-Jan-12 Alicia F. Brantley Biotechnology Program Deborah Leach 10-Jan-12 Education Outreach Discussion with Florida Atlantic University Scampavia Allamanda Elementary School/Science Fair Judge, Palm Beach 18-Jan-12 Douglas Kojetin Gardens, FL Invited speaker University of Alabama @ Birmingham - Nutrition 30-Jan-12 Paul Kenny Obesity Research Center Seminar Series Deborah Leach I-TEACH Steering Committee Meeting with Palm Beach County 31-Jan-12 Scampavia Schools 4-Feb-12 Scripps wide Scripps Florida Cellebrate Science Day 12-Feb-12 Jeremy Pyle Florida - Sunshine State Scholars 13-Feb-12 Briana Weiser Meeting with Dr. and Mrs. Jeff Abrams 15-Feb-12 Andrew Butler FAU Medical School, Boca Raton Campus Presentation at Florida International University on career 22-Feb-12 William Roush opportunities in Chemistry, Miami, FL 4-Mar-12 Paul Kenny Invited speaker University of Colorado Invited speaker Vanderbilt University, Nashville, TN - Vanderbilt 9-Mar-12 Paul Kenny Institute for Obesity and Metabolism GE Healthcare/Presenter: Introducing the IN Cell 6000 Confocal 12-Mar-12 Patricia McDonald Imaging System, Jupiter, FL

Scripps Florida Funding Corporation 65 Annual Report 2012 Provide interview to Kyle Jardim (HS student from South Carolina) 13-Mar-12 Paul Kenny re: research paper on addictiveness of fast food and its similarity to drugs and alcohol 18-Mar-12 Timothy Tellinghuisen Western Academy Science Fair Judge Provide interview to Alison Watson (HS student from Maryland) re: 20-Mar-12 Paul Kenny research paper on fatty diets and how they relate to food addictions 22-Mar-12 Timothy Tellinghuisen Career Day at Western Academy 25-Mar-12 William Roush NOBCChE Lecturer, San Diego, CA Deborah Leach- Scampavia, Jeremy Pyle, InSPIRE - Secondary Science Teachers Professional Development 4-Apr-12 Society of Research Review Lesson Fellows Intern for credit (Amira Barghouthy) - Florida Atlantic University, 16-Apr-12 Donald Phinney Wilkes Honors College, Jupiter, FL 14-May-12 Kirill Martemyanov Mentored FAU intern Chris Holmquist 14-May-12 Massimiliano Aceti Mentored FAU intern Megan McGuire Deborah Leach 16-May-12 U.S. Imaging / United Way Meeting on STEM Education Scampavia University of Michigan, Defense of Crystal Young for receipt of 24-May-12 Katrin Karbstein Ph.D. University of Texas at San Antonio Student Internship-Gwendolyn 4-Jun-12 Susana Valente Quintana 4-Jun-12 Scripps wide Undergraduate Summer Interns Brian Paegel, Deborah 5-Jun-12 Leach-Scampavia, Jeremy Research Seminar for Undergraduate Summer Interns Pyle 11-Jun-12 Scripps wide High School Summer Interns Pat Griffin, Deborah 12-Jun-12 Leach-Scampavia, Jeremy Research Seminar for Undergraduate Summer Interns Pyle 18-Jun-12 Roy Periana Summer Intern from University of Rochester, Michael Robo Tim Tellinghuisen, 19-Jun-12 Deborah Leach- Research Seminar for Undergraduate Summer Interns Scampavai, Jeremy Pyle Deborah Leach- 21-Jun-12 Scampavia, Cheryl Marra, Undergrad and Grad Social Presentation Jeremy Pyle Louis Scampavia, Pierre 21-Jun-12 Baillargeon, Deborah Lego MindStorm Lesson - Beta Test Middle School Leach-Scampavia 25-Jun-12 Camilo Rojas Mentored HS intern Erika Gesner 30-Jun-12 Peter Hodder Intern mentor 1-Jul-2012 Peter Hodder Intern mentor 3-Jul-2012 William Ja Presentation to undergraduate and high school interns - TSRI Deborah Leach 10-Jul-2012 Scamapvia, Rosie Zeckler PBSC High School Math Summer Camp

Scripps Florida Funding Corporation 66 Annual Report 2012 10-Jul-2012 Patricia McDonald Presentation to undergraduate and high school interns - TSRI Deborah Leach- Scampavia, Ryan Stowe, Lee Pedzisa, Rosie 11-Jul-2012 Albaran-Zeckler Project Hope 12-Jul-12 Paul Kenny Presentation to undergraduate and high school interns - TSRI 17-Jul-12 Paul Kenny Presentation to undergraduate and high school interns - TSRI Rosie Albaran-Zeckler, Deborah Leach- 17-Jul-12 Scampavia PBSC Science Summer Camp 20-Jul-12 Gavin Rumbaugh Kenan Fellow Poster Presentation - Alexandra Kaye Thesis Committee, Graduate Student Baylor College of Medicine, 20-Jul-12 Ron Davis TX 20-Jul-12 Scripps Wide High School Intern Research Presentations - TSRI Heidi Walsh, Reji Nair, 24-Jul-12 Michael Metrone Presentation to undergraduate summer interns - TSRI Ryan Stowe, Briana Weiser, Andrew McConnell, 31-Jul-12 Keith Lizotte Presentation to undergraduate summer interns - TSRI Interviewed Patrick Doonan, Temple University School of 2-Aug-12 Philip LoGrasso Medicine, for a postdoc position 7-Aug-12 Laura Bohn Presentation to undergraduate summer interns - TSRI Patricia McDonald Scripps Florida, Fink Auditorium, Jupiter, FL – Education Outreach Workshop – Presenter to Palm Beach County elementary and 8-Aug-12 middle school Scripps teachers Patricia McDonald, Louis Scampavia, Pierre Baillargeon, Deborah Leach- Scripps Florida, Fink Auditorium, Jupiter, FL – Education Outreach Scampavia, Workshop – Presenter to Palm Beach County elementary and 8-Aug-12 Jeremy Pyle middle school Scripps teachers 10-Aug-12 Ron Davis White Coat Ceremony, FAU Boca Campus, FL 10-Aug-12 Scripps Wide undergraduate poster competition - TSRI Deborah Leach- Scampavia, Jeremy Pyle, 16-Aug-12 Rosie Albaran-Zeckler PB Co Sch. Dist. Science Symposium Deborah Leach- 28-Aug-12 Scampavia PB Co Sch. Dist. Science High School Instruction Leadership 30-Aug-12 Andrew Butler Invited speaker at Florida Institute of Technology, Melbourne, FL Deborah Leach- 30-Aug-12 Scampavia PB Co Sch. Dist. Science Middle School Instruction Leadership 4-Sep-12 Paul Kenny Invited speaker - Florida Atlantic University, Boca Raton, FL Deborah Leach- 11-Sep-12 Scampavia PB Co Sch. Dist. Science High School Instruction Leadership 20-Sep-12 Kirill Martemyanov Thesis Defense with grad student Ekaterina Posokhova 20-Sep-12 Kirill Martemyanov Thesis Defense with grad student Ekaterina Posokhova

Scripps Florida Funding Corporation 67 Annual Report 2012 Deborah Leach- 25-Sep-12 Scampavia PB Gardens HS Advisory Board Thomas Bannister, Laura Bohn, Kate Carroll, John Clevelend, Matt Gill, Patrick Griffin William Ja, Katrin Karbstein, Tom Kodadek, Jun Li Luo, Patricia McDonald, Kendall Nettles, Brian Paegel, Damon Page, Sathya Puthanveettil, William Roush, Roy Smith, Tim Tellinghuisen, Paul Thompson, Susana Valente, 1-July to Deborah Leach 10- Aug-12 Scampavia, Jeremy Pyle Summer Intern Mentors

Community Outreach Scripps Florida community outreach has offered opportunities for the public to gain insight into cutting edge biomedical research while providing opportunities for Scripps Florida faculty and staff to respond to the interest in Scripps Florida biomedical research from the residents of Palm Beach County.

This Fiscal Year’s Community Outreach included the following events: Barbara Noble, Susan 1-Oct-11 Fraternal Order of Eagles, Jupiter - charity night presentation Rode Ben Starling, Barbara 3-Oct-11 Forum Club of the Palm Beaches Noble, Lisa Huertas 12-Oct-11 Lisa Huertas Kiwanis Club of the North Palm Beaches Virtual Exploration Susan Rode, Lisa Huertas, Scripps Florida booth at Jupiter Inlet Colony's inaugural KidFest at 15-Oct-11 Barbara Noble, Deborah Roger Dean Stadium Leach-Scampavia Ben Starling and Damon 17-Oct-11 Pundits of Palm Beach Page 18-Oct-11 Alex Bruner Palm Beach Gardens Library Virtual Exploration 19-Oct-11 Roy Smith Harris Bank Lecture, PGA National Dr. Roy Smith, Alex 19-Oct-11 Discussion on Wellness and Aging at PGA National Bruner Dr. Roy Smith, Dr. Paul 27-Oct-11 Future of Medicine Summit Kenny 26-Oct-11 Donald Phinney Meet with Dr. Michael Ellis, et al. 27-Oct-11 Roy Smith Palm Beach County Medical Conference 27-Oct-11 Dr. John Cleveland Science of Health, Community Outreach Event 4-Nov-11 Alex Bruner Urban Land Institute Virtual Exploration

Scripps Florida Funding Corporation 68 Annual Report 2012 Accelerate Brain Cancer Cure Foundation and Rendina Family 8-Nov-11 Dr. Derek Duckett Presentation of Brain Cancer Research 10-Nov-11 Ben Starling Community Leaders Gathering 13-Nov-11 Alex Bruner Lakeridge Falls Community Virtual Exploration Richard A. Gephardt / 13-Nov-11 The Scripps Research Institute 50th Anniversary Gathering Scripps Wide 14-Nov-11 Paul Kenny Invited speaker Scripps Florida Council, Jupiter, FL 15-Nov-11 Donald Phinney Lunch with Scripps Florida Council 16-Nov-11 Donald Phinney Meet with Dr. Michael Ellis, George Cadwagan, et al. 18-Nov-11 Alex Bruner Loxahatchee Club Virtual Exploration Alex Bruner, Barbara 28-Nov-11 Forum Club of the Palm Beaches Noble, Ben Starling Dr. Katrin Karbstein, Dr. Women's Cancer Awareness Days (WCAD) Presentation of Cancer 1-Dec-11 Antonio Amelio, Barbara Research and Campus Tour Noble, Susan Rode 1-Dec-11 Dr. Susana Valente Front Lines of Hope Community Outreach Event Mental Health Association of Palm Beach County Presentation of 8-Dec-11 Dr. Kirill Martemyanov Addiction Research 9-Dec-11 Alex Bruner Community Virtual Exploration of Scripps Florida 12-Dec-11 Ben Starling Forum Club of the Palm Beaches Dr. Phil LoGrasso, National Parkinson's Foundation, South Palm Beach County 12-Dec-11 Barbara Noble Presentation of Parkinson's Research Palm Beach County Estate Planning Council annual meeting, 13-Dec-11 Barbara Noble Scripps FL overview and campus tour 14-Dec-11 Charles Weissmann Taras Lecture - Jupiter High School Ira & Ronnie Levine and Mr. & Mrs. Harold Wilkinson, Prader 26-Dec-11 Roy Smith Willi Syndrome PGA’s Women’s Cancer Awareness Days fundraiser for Cancer 4-Jan-12 John Cleveland Biology, kick-off presentation Dr. John Cleveland, Scripps FL kick-off presentation for Womens Cancer Awareness 4-Jan-12 Barbara Noble, Susan Days Event Rode Cristin Gavin, Lisa 6-Jan-12 Hatikvah North County Chapter of Hadassah, Memory Research Huertas Interview with Nasfim Haque of Outline Productions Co (UK) re: 8-Jan-12 Paul Kenny obesity 10-Jan-12 Alex Bruner Planned Giving Council of Palm Beach County, Meeting Dr. Brian Paegel, Dr. Admiral's Cove Virtual Exploration, Overview of Scripps FL and 11-Jan-12 Harry Orf, Barbara Noble Microfluidics in Research Dr. Roy Smith, Barbara 13-Jan-12 Prader Willi Syndrome research annual dinner Noble, Susan Rode 13-Jan-12 Lisa Huertas Community Virtual Exploration of Scripps Florida Frenchman's Creek Women for Cancer Research (FCWFCR) for 15-Jan-12 Barbara Noble Scripps FL - house tours

Scripps Florida Funding Corporation 69 Annual Report 2012 Frenchman's Creek Women for Cancer Research (FCWFCR) for 16-Jan-12 Barbara Noble Scripps FL - tennis tourn Dr. Kendall Nettles, Frenchman's Creek Women for Cancer Research (FCWFCR) for 17-Jan-12 Barbara Noble Scripps FL - golf/luncheon 19-Jan-12 Courtney Miller Philanthropy Presentation Ron Davis, Courtney 19-Jan-12 Morgan Stanley, Learning and Memory Research Miller, Alex Bruner 22-Jan-12 Alex Bruner Temple Beth El Virtual Exploration Dr. Roy Smith, Alex Ibis Golf and Country Club Virtual Exploration and Anti-Aging 23-Jan-12 Bruner Research Barbara Noble, Dr. Patrick Fraternal Order of Eagles FL Statewide leadership - meeting, 27-Jan-12 Griffin, Dr. Damon Page overview and campus tour 29-Jan-12 Paul Thompson Fit for Scripps Women's Cancer Awareness Day 5K Dr. John Cleveland, Susan 29-Jan-12 WCAD Fit for Scripps Rode 31-Jan-12 Lisa Huertas Rotary Club of Jupiter/Palm Beach Gardens Virtual Exploration Barbara Noble, Susan 31-Jan-12 WCAD Reception for Cancer Research Rode Ronald L. Davis, Trina Kemp, Bindu Raveendra, Front Lines of Hope - Moderator, Royal Poinciana Chapel, Palm 2-Feb-12 Gavin Rumbaugh, Sathya Beach Puthanveettil, Barbara Noble, Susan 2-Feb-12 WCAD Golf and Tennis Tournament for Cancer Research Rode 3-Feb-12 Donald Phinney Meet with McCubbin family Invited speaker - Institute for Brain Potential Seminar, West Palm 3-Feb-12 Paul Kenny Beach, FL Barbara Noble, Dr. Laura 5-Feb-12 American Psychological Association, Florida meeting Bohn 8-Feb-12 Lisa Huertas Community Virtual Exploration of Scripps Florida Cristin Gavin, Alex Devonshire at PGA National, Virtual Exploration and Memory 8-Feb-12 Bruner Research John Cleveland, Howard Petrie, Jun-Li Luo and 11-Feb-12 other people from the Audubon Society Volunteer Day Cancer Biology Department 15-Feb-12 Patricia McDonald Frontlines of Hope - Presenter on Diabetes, Scripps, FL Invited speaker - Institute for Brain Potential Seminar, Ft. 20-Feb-12 Paul Kenny Lauderdale, FL Invited speaker - Institute for Brain Potential Seminar, Vero Beach, 22-Feb-12 Paul Kenny FL 23-Feb-12 Paul Kenny Interview with Johnny Holden of Irish Times Science Section 24-Feb-12 Alex Bruner, Ben Starling Forum Club of the Palm Beaches Barbara Noble, Dr. Laura 25-Feb-12 Caron Institute Annual dinner and meeting Bohn

Scripps Florida Funding Corporation 70 Annual Report 2012 Frenchman's Creek External Affairs Committee - North County 27-Feb-12 Barbara Noble Annual Luncheon Gavin Rumbaugh, Philanthropy Event - Presentation at PNC Wealth Management, 28-Feb-12 Courtney Miller Vero Beach Dr. Gavin Rumbaugh, PNC Wealth Management Learning and Memory Research, Vero 28-Feb-12 Barbara Noble Beach Dr. Courtney Miller, Alex 28-Feb-12 Morgan Stanley, Learning and Memory Research Bruner Ron Davis, Gavin 29-Feb-12 Rumbaugh, Sathya Rare Disease Day, Scripps Puthanveettil Dr. Kendall Nettles, Alex 3-Mar-12 5th Annual W.B. Ingalls Prostate Cancer Seminar Bruner Dr. Ron Davis, Alex BallenIsles Country Club Community Virtual Exploration and 6-Mar-12 Bruner Learning and Memory Research 7-Mar-12 Alex Bruner Jones, Foster, Johnston & Stubbs Virtual Exploration George Tokesky, Gilbert Brown and Paula Alderson from Hospice 8-Mar-12 Ron Davis by the Sea, Scripps 9-Mar-12 Alex Bruner Community Virtual Exploration of Scripps Florida Ron Davis, Gavin 15-Mar-12 Rumbaugh, Sathya Front Lines of Hope - Long Term Memory Presentation Puthanveettil Invited speaker - Institute for Brain Potential Seminar, Coral 19-Mar-12 Paul Kenny Gables, FL Interview with Kathriona Devereaux and Philip Boucher Hayes re: 20-Mar-12 Paul Kenny documentary titled "What's Ireland Eating" for Ireland's Public Broadcaster RTE 22-Mar-12 Dr. Michael Marletta The Night of Science Alex Bruner, Barbara 23-Mar-12 Forum Club of the Palm Beaches Noble, Ben Starling Derek Duckett, Paul 25-Mar-12 Florida Brain Cancer 5K Accelerating the Cure Thompson PNC Wealth Management/Presenter at the Science of Health Event, 28-Mar-12 Patricia McDonald Royal Poinciana Chapel, Palm Beach, FL 30-Mar-12 Paul Thompson American Cancer Society Relay for Life Dr. Phil LoGrasso, National Parkinson's Foundation Conference for Patients and 30-Mar-12 Barbara Noble Caregivers, Palm Beach/Broward Counties, Keynote Speech 10-Apr-12 Donald Phinney Meet with Jeanne Loring and Barbara Noble National Active and Retired Federal Employees Assoc., North 10-Apr-12 Lisa Huertas Palm Beach Chapter Virtual Exploration Dr. Jeanne Loring, Women in Power Luncheon, PNC Wealth Management, Stem Cell 11-Apr-12 Barbara Noble Research, Vero Beach 16-Apr-12 Dr. Roy Periana Front Lines of Hope Community Outreach Event Planned Giving Council of Palm Beach County and East Coast 19-Apr-12 Alex Bruner Estate Planning Council, Joint Meeting

Scripps Florida Funding Corporation 71 Annual Report 2012 Martin County Taxpayers Association Annual Dinner Virtual 20-Apr-12 Alex Bruner Exploration Briana Weiser, Lisa 23-Apr-12 P.E.O. International Virtual Exploration and Hepatitis C Research Huertas 24-Apr-12 Paul Kenny Interview with MORE Magazine Dr. Ron Davis, Ben 24-Apr-12 Coleman Hogan Fund for Memory Research Event Starling Dr. Patricia McDonald, PNC Wealth Management Diabetes and Obesity Research, Vero 26-Apr-12 Barbara Noble Beach Friends of Neuroscience and Palm Beach County Medical Society 26-Apr-12 Dr. Ron Davis Reception Barbara Noble, Ben 30-Apr-12 Forum Club of the Palm Beaches Starling Dr. William Roush, Dr. 5-May-12 Scripps Chemistry Symposium Glenn Micalizio Invited speaker Columbia Alum Stem Cell Event, West Palm 10-May-12 Donald Phinney Beach, FL John Cleveland, Jun-Li 11-May-12 ThinkPINKkids of Wellington for Cancer Research Walk Luo, Barbara Noble 14-May-12 Damon Page Pundits, Guest Speaker, City Place Marriott, West Palm Beach, FL AFP and Planned Giving Council of Palm Beach County, Joint 17-May-12 Alex Bruner, Lisa Huertas Meeting Alex Bruner, Ben Starling, 21-May-12 Forum Club of the Palm Beaches Lisa Huertas 22-May-12 Lisa Huertas Professional Resource Network Virtual Exploration Diane's Voice, Gilda's Club of South Florida Ovarian Cancer 22-May-12 Dr. Kendall Nettles Symposium 23-May-12 Barbara Noble Realtor's Association of Palm Beach County Virtual Exploration Barbara Noble, Paul 24-May-12 FAU Science Journalism Workshop - Neil Santaniello Thompson, Matt Gill 25-May-12 Paul Kenny Interview with Mary Jane Fine of Florida Weekly Magazine Quantum Foundation/BCBS Foundation - HBO's Weight of the Dr. Patricia McDonald, 30-May-12 Nation Screening and Community Conversation about Obesity and Barbara Noble Diabetes Families of Spinal Muscular Atrophy (FMSA), Translational 4-Jun-12 Peter Hodder Advisory Council Member, 2012 15-Jun-12 Deborah Leach-Scampavia Scripps Tour - Arsha Vuppuluri Alex Bruner, Barbara 15-Jun-12 Noble, Ben Starling, Lisa Forum Club of the Palm Beaches Huertas 17-Jul-12 Donald Phinney Invited speaker - Jupiter-Tequesta Rotary Club 26-Jul- Families of Spinal Muscular Atrophy (FMSA), Translational 2012 Peter Hodder Advisory Council Member, 2012 Ron Davis, Gavin Rumbaugh, Damon Page, Kirill Martemyanov and 28-Jul-12 Sathya Puthanveettil JFK Medical Center, tour and dinner, Scripps

Scripps Florida Funding Corporation 72 Annual Report 2012 Dawn Johnson, Barbara 30-Jul- 12 Noble Meet with Shannon LaRocque and Karen Marcus Ben Starling, Barbara 22-Aug-12 Noble Forum Club of the Palm Beaches with US Senator Marco Rubio 6-Sep-12 Dawn Johnson Bioscience Land Protection Advisory Board 17-Sep-12 Dawn Johnson North County Intergovernmental Committee Meeting Ben Starling, Barbara Forum Club of the Palm Beaches with Mayor Lois Frankel, and 24-Sep-12 Noble, Alex Bruner Senator Adam Hasner Dr. Ron Davis, Dr. Patsy McDonald; Dr. Kirill Martymeanov and Ben 27-Sep-12 Starling Palm Beach County Medical Society – Future of Medicine Summit

Business Outreach Business outreach efforts include participation in meetings facilitated by local business and government agencies such as the Palm Beach County Business Development Board. Additionally, Scripps Florida is active with the Florida Research Consortium, BioFlorida and the South Florida Science Museum. Local efforts involve presentations to community groups, various cultural organizations, and specialty groups.

The following list contains those efforts on behalf of SF in terms of business outreach:

U.C.F. presentation: "Biotechnology: What it means to Florida's 6-Oct-11 Donny Strosberg Community" 12-Oct-11 Roy Periana AirProducts meetings and presentation 14-Oct-11 Donald Phinney Meet with Richard Shaw of IntelliCell, Boynton Beach, FL 17-Oct-11 Louis Scampavia SABIC, La Jolla, CA, USA 19-Oct-11 Peter Hodder Nexus Biosystems/Brooks Automation, Poway, CA, USA 2-Nov-11 Roy Periana Argonne National Laboratories meeting/talk 7-Nov-11 Paul Thompson Seminar at Constellation Pharmaceuticals, Inc. Cambridge, MA 8-Nov-11 Paul Thompson Seminar speaker at Epizyme. Cambridge, MA 15-Nov-11 John Cleveland Scripps/Pfizer Meeting at Scripps 22-Dec-11 Peter Hodder Envoy Therapeutics, Jupiter, FL, USA 9-Jan-12 Ron Davis Palm Beach Round Table, Palm Beach, FL 9-Jan-12 Donny Strosberg JP Morgan - California 16-Jan-12 Paul Kenny Meet with new CEO The Hanley Center, West Palm Beach, FL Alex Bruner, Ben Starling, 17-Jan-12 Forum Club of the Palm Beaches Lisa Huertas Barbara Noble, Ben 31-Jan-12 Forum Club of the Palm Beaches Starling, Lisa Huertas 1-Feb-12 Donny Strosberg Florida Venture Forum - Naples, Florida 14-Feb-12 Alex Bruner Planned Giving Council of Palm Beach County, Meeting 28-Feb-12 Peter Hodder Ironwood Pharmaceuticals, Boston, MA, USA 28-Feb-12 Roy Periana Mainstream Engineering meeting in Rockledge, Florida 29-Feb-12 Peter Hodder Lilly, Indianapolis, IN, USA 8-Mar-12 Barbara Noble Palm Beach Chamber of Commerce meeting 13-Mar-12 Peter Hodder NoNO, Inc., Toronto, Canada 6-Apr-12 Ron Davis Drs. Kini, Perdoma and Jayakar from Miami Children's Hospital

Scripps Florida Funding Corporation 73 Annual Report 2012 9-Apr-12 Peter Hodder Energesis Pharmaceuticals, Cambridge, MA, USA 12-Apr-12 Barbara Noble Palm Beach Chamber of Commerce meeting 24-Apr-12 Peter Hodder Ember Therapeutics, Boston, MA, USA 3-May-12 Barbara Noble Executive Women of the Palm Beaches 11-May-12 Peter Hodder DavosPharma, Upper Saddle River, New Jersey, USA Dr. Damon Page, Ben 14-May-12 Pundits of Palm Beach Starling Future of Medicine Summit Leadership Committee Meeting, West 21-May-12 Ron Davis Palm Beach, FL 30-May-12 Corinne Lasmexas Meeting about technology commercialization Meeting between The Scripps Research Institute (La Jolla, CA and 6-Jun-12 Christoph Rader Jupiter, FL) and Vanderbilt University (Nashville, TN) in Dallas, TX 7-Jun-12 Ron Davis Steering Committee Meeting, Dallas TX 13-Jun-12 Alex Bruner Palm Beach Planning Council Conference with Michael DeVivo of Pfizer re: potential 15-Jun-12 Paul Kenny collaboration 18-Jun-12 Ron Davis Future of Medicine Committee Meeting, West Palm Beach, FL Ron Davis and Damon 19-Jun-12 Dick Busto, Autism Project Meeting, West Palm Beach, FL Page Palm Beach County Medical Society BOD Meeting, West Palm 20-Jun-12 Ron Davis Beach, FL 21-Jun-12 Susana Valente Sirenas consulting in La Jolla, CA Meet with Dawn Johnson, Alex Bruner and Rob Baird from 22-Jun-12 Paul Kenny Woodrow Wilson Drug Development Fellowship Meet with Drs. Patrick Griffin and Phillip Frost (The Frost Group) 25-Jun-12 Paul Kenny at The Frost Group offices in Miami, FL Telephone conference with Rob Baird of Woodrow Wilson Drug 28-Jun-12 Paul Kenny Development Fellowship Palm Beach County Medical Society Kickoff Meeting, West Palm 10-Jul-12 Ron Davis Beach, FL Monthly Christopher Haga Life Science Technology Hub meetings (Bio Florida) 2011-2012 11-Jul-12 Paul Kenny Meet with Dr. Phillip Frost, The Frost Group, Miami, FL 18-Jul-12 Roy Smith Conference Call with Rhythm Pharmaceuticals 25-Jul-12 Paul Kenny Conference with Rob Baird of The Woodrow Wilson Foundation 26-Jul-12 Dawn Johnson Meet with Russell Allen, President, BioFlorida 30-Jul-12 Peter Hodder Lilly, Indianapolis, IN, USA 1-Aug-12 Peter Hodder ARCH Venture Partners, San Francisco, CA, USA Laura Niedernhofer and 25-Aug-12 Paul Robbins Meeting with Orthogen and Lifespan Medicine Laura Niedernhofer and 30-Aug-12 Paul Robbins Meeting with Scientific Skincare Laura Niedernhofer and 31-Aug-12 Paul Robbins Meeting with Meetara 1-Sep-12 Peter Hodder Envoy Therapeutics, Jupiter, FL, USA 5-Sep-12 Laura Niedernhofer Meeting with Scientific Skincare 6-Sep-12 Laura Niedernhofer Conference call with FutureDerm 6-Sep-12 Laura Niedernhofer Confernence call with Trevigen

Scripps Florida Funding Corporation 74 Annual Report 2012 7-Sep-12 Peter Hodder Ironwood Pharmaceuticals, Boston, MA, USA 8-Sep-12 Barbara Noble Business Development Board Dinner 10-Sep-12 Christoph Rader Meeting with Moffitt Cancer Center, Tampa, FL 12-Sep-12 Peter Hodder Promega, Madison WI, USA 13-Sep-12 Peter Hodder VGTI, Port Saint Lucie, FL, USA 21-Sep-12 Barbara Noble Chamber of Commerce of the Palm Beaches, Athena Awards Barbara Noble, 27-Sep-12 Dawn Johnson Business Development Board PBC Annual Luncheon 09/12/12- 09/14/12 Paul Kenny Invited speaker - Pfizer, Cambridge, MA Palm Beach County Medical Society Kickoff Meeting, West Palm 10-Jul-12 Ron Davis Beach, FL 18-Jul-12 Ron Davis Palm Health Care/Mental Health Assoc Meeting, West Palm Beach 28-Aug-12 Ron Davis, Damon Page Renaissance Learning Center Board Meeting, West Palm Beach Palm Beach County Medical Society BOD Meeting, West Palm 30-Aug-12 Ron Davis Beach, FL 27-28 Sept 12 Ron Davis Future of Medicine Leadership Summit, West Palm Beach, FL Ron Davis and Damon Renaissance Learning Center Board Meeting, West Palm Beach, 25-Sep-12 Page FL 30-Jul-12 Thomas Burris Index Ventures 6-Aug-12 Thomas Burris Eli Lilly and Company 22-Aug-12 Thomas Burris Orbimed Advisors LLC 23-Aug-12 Thomas Burris Vanda Pharmaceuticals Inc. 27-Aug-12 Thomas Burris Index Ventures 4-Sep-12 Thomas Burris Index Ventures 25-Sep-12 Thomas Burris Merck & Co., Inc. 27-Sep-12 Thomas Burris Index Ventures 28-Sep-12 Thomas Burris Phenex Pharmaceuticals

This concludes the SFFC Annual Report.

Should you have any questions, please feel free to contact us at (561)655-9669 or [email protected].

Scripps Florida Funding Corporation 75 Annual Report 2012