Annual Report 2014

Annual Report 2014
Convergence Ahead
As we face the New Year, we see an unparalleled convergence of challenges in global health security and
homeland defense. An illness or threat in one part of the
world now has connections to the health and security of
the entire population. This demands harnessing emerging
technology and pioneering innovation in focus areas of
national priority – prevention, detection, response.
And MRIGlobal stands ready.
For 70 years, MRIGlobal invested in and nurtured a
culture of collaboration and cross-disciplinary engagement
and combined that with excellence in scientific practice.
Our teams address complex technical problems by encouraging different perspectives, integrating disparate but
complementary disciplines, and linking them all together
with critical thinking and creativity.
Some examples – today, we are:
•
Advancing real-time global biosurveillance, training disease detectives, and minimizing biorisk
•
Accelerating the development of new medical
therapies and countermeasures
•
Creating revolutionary point-of-care, point-ofneed diagnostic systems integrating rapid genetic
characterization with big data
•
Delivering state-of-the-art scientific equipment
and technology to remote locations for agile,
fact-based decision support
•
Developing sustainable energy, shepherding the
transformation to a low-carbon society, powering
emerging communities
•
Integrating biometrics, wearable sensors, and
computing devices to protect our military
In this report, we offer a look at some of our accomplishments in 2014. We also talk about our direction in the
coming year, with a special focus on areas of converging
scientific domains that meet the evolving needs of our clients. We march forward in our public service and mission
– To use science and technology to deliver solutions for a
safer, healthier, more sustainable world.
Thomas M. Sack, Ph.D.
President and Chief Executive Officer
MRIGlobal 2014 Annual Report | 3
Our Mission
To use science and technology
to create solutions for a safer,
healthier, more sustainable world.
Health in an Interconnected World
MRIGlobal’s mission addresses the need to secure a safer and
healthier world. We perform critical functions in supporting
national priorities in public health, advancing product development from the lab to the marketplace, and delivering new diagnostic tools and devices. Our work spans the health spectrum
– from biologicals and small-molecule therapeutics to robust
and innovative manufacturing, from assisting clinical trials to
developing life-saving vaccines.
Molecular Diagnostics: MRIGlobal helps medical device makers
and pharmaceutical firms accelerate the commercialization of
their products, providing regulatory guidance and analytical
services in marker assay validation, analytical validation, and
clinical validation to support FDA 510K and CE-mark filings.
With expertise in in vitro diagnostics product development,
biotechnology, and engineering, MRIGlobal develops and integrates technology, including next-generation sequencing, into
novel solutions for rapid and accurate diagnostic assessment
by clinicians at the point of need.
Antimicrobial resistance: MRIGlobal is on the forefront of
addressing the dramatic spread of antimicrobial resistance and
outbreaks of multidrug-resistant bacteria. Integrating genomics
and big data, MRIGlobal works to reduce the impact of these
threats by providing tools to identify specific diseases to support the clinician in prescribing appropriate therapies.
Therapeutics: MRIGlobal supports the development of vaccines
for human papilloma virus, influenza, and highly pathogenic
viruses; our experts deliver analytics to understand optimum
shelf-life, dosage, and efficacy. MRIGlobal advances cancer
research with chemopreventive treatments, contributes to
understanding of neurological disorders and strokes, evaluates wound treatment therapies, and drives a broad array of
multipurpose medical countermeasures and therapeutics in
response to the use of chemical and biological weapons.
Fusion of engineering and health science: MRIGlobal explores
the intersections of technology and integrates genomics and
bioinformatics, biosensors with real-time communications
and cloud computing. One initiative envisions clothing-based
health and environmental sensors, automatically providing
accurate and actionable information to the warfighter or first
responder.
We use the highest standards to increase the safety and integrity of biotechnology and medical manufacturing processes,
with unwavering commitment to quality. Our expertise encompasses new technology, spanning translational medicine, drug
discovery, food safety, and animal-human health connections.
Recognizing that the health of Americans is interconnected
with the health of all people around the globe, we lead by embracing international and interdisciplinary collaboration.
MRIGlobal 2014 Annual Report | 5
MRIGlobal plays an important role in developing the nation’s
capacity to address evolving threats and hazards. We use our
innovative problem-solving and systems engineering excellence
to counter today’s asymmetric and multidimensional threats to
national security.
Mobile laboratories: MRIGlobal has a decade of expertise in the
continuous transition of technologies from the laboratory to
rugged and robust fielded systems, capable of delivering rapid
and actionable information. We deliver microbial forensics,
diagnostic assays, and complex chemical analyses to forward
operations. Our forward-fielded systems are set up rapidly and
are fully self-functioning, thanks to our innovative laboratory
design and custom power generation and minigrid applications.
CBRNE Technology Development and Countermeasures:
MRIGlobal leads in testing, evaluating, and validating commercial analytical instruments and methods for use in harsh,
dynamic environments. Our independent scientific evaluation
guides the selection of technologies for use by first-responders
and the military. To address chemical, biological, radiological,
nuclear, and explosive (CBRNE) threats, we develop and evaluate tools for medical defense – threat agent detection, clinical
diagnostics, infectious disease surveillance, and prevention
and treatment of evolving threats, whether they are man-made
weapons of mass destruction or natural disease outbreaks like
Ebola.
Chemical Testing Facility: In 2014, MRIGlobal substantially
completed a unique facility to advance scientific understanding of evolving chemical threats. The facility is on the frontline of national priorities to detect, prevent, mitigate, and
respond to emerging chemical warfare threats.
Real-time Biosurveillance: Continuous monitoring and surveillance, sampling and analysis, and rapid characterization of
threats to provide accurate and early warning requires an integrated system of systems. MRIGlobal combines this with deep
expertise in biosafety and biosecurity to build public health
infrastructure – worldwide – to identify and address emerging
biothreats.
We apply the expertise of our highly skilled staff of scientists,
engineers, and mathematicians to deliver predictive modeling
and simulation tools, data fusion techniques, and forward-looking technology to deliver agile and resilient concepts of operation and rapid-response solutions to specific issue. Our work
helps keep the uniformed and civilian population safe.
Addressing
Evolving Threats
Power for Tomorrow
National energy policy calls for reduced dependence on foreign
oil, while increasing our production of affordable, clean, and
secure energy and transforming the U.S. energy economy. The
decisions we make about energy impact all facets of our lives
– how food is produced, what happens in the environment,
public policy and economics, new materials and building technologies, public transportation, and national infrastructure, to
name a few.
At MRIGlobal, our expertise crosses fossil fuels and renewable energy sources; we understand the complexities of grid
engineering and infrastructure management; we tackle the
challenges inherent in bringing new solar, biomass, and wind
power to market.
NREL: MRIGlobal has managed the National Renewable Energy
Laboratory for the U.S. Department of Energy since its inception in 1977. This is the only national laboratory dedicated
to renewable energy technology. In 2014, the laboratory was
awarded an R&D 100 award for the Energy Systems Integration
Facility, which is designed to drive solutions that integrate
solar, wind, and other renewables work with traditional fuels to
deliver clean, reliable energy to the nation.
Strategic Petroleum Reserve: MRIGlobal is a partner on the
team that manages the Strategic Petroleum Reserve. Our role
focuses on energy efficiency, site sustainability, and operational safety.
SolarTAC: MRIGlobal operates a 74-acre solar energy test bed,
a facility designed to accelerate commercialization of new
solar technologies. SolarTAC, in Aurora, Colorado, currently has
full-scale operating prototypes of concentrating solar parabolic
troughs delivering direct steam generation for heat storage and
water desalination; research to optimize new storage technology; and real-world trials of new photovoltaic components.
Remote power needs: MRIGlobal engineers lead the charge to
develop minigrids as well as designing and developing unique
generators for self-sufficient mobile facilities in remote locations or disaster sites. MRIGlobal also works in next-generation
power systems for developing nations.
MRIGlobal experts tackle projects that support the national
energy priorities: fuel efficiency, carbon management, new
storage technologies, environmental modeling, and economic
impact of new technologies. MRIGlobal is bringing safe and
sustainable solutions to power our world.
MRIGlobal 2014 Annual Report | 7
Revenues from MRIGlobal Research Operations – consisting
of research and development for our clients in Global Health
Security, National Security and Defense, and Energy – totaled
$88 million in the fiscal year ending September 30, 2014.
Combined revenues, including the National Renewable Energy
Laboratory, were $467 million.
2014 Financial
Performance
MRIGlobal continues to invest in scientific talent, innovation,
and infrastructure, with specific focus on the evolving needs
in the converging area of global health security and national
defense.
Research Operations
MRIGlobal’s customers are government agencies and commercial and industrial clients.
NREL
683
Combined
626
Revenue $ in millions
556
548
494
478
467
436
383
Contract Research +
Managed Lab Revenue
132
112
127
95
FY2010**
379
FY2011**
FY2012**
88
FY2013*
FY2014*
*Fiscal year ending in September
**Fiscal year ending in June
9%
43%
Strategic Analysis,
Integration & Deployment
Renewable
Electricity &
Efficiency
20%
Renewable Fuels
NREL (% of revenue)
19%
Work for others
9%
Facility Construction
& Infrastructure
Our Board and
Directors
CHAIRMAN
Tom Bowser
Blue Cross and Blue Shield
(Retired)
VICE CHAIRMAN
Barrett Brady
Highwoods Properties, Inc.
(Retired)
VICE CHAIRMAN
General Richard B. Myers
RMyers & Associates
USAF (Retired)
VICE CHAIRMAN
Jefferson W. Tester, Ph.D.
Cornell University
Our Executives
Thomas M. Sack, Ph.D.
President &
Chief Executive Officer
Dan E. Arvizu, Ph.D.
Executive Vice President,
MRIGlobal;
Laboratory Director &
President, Alliance for
Sustainable Energy, LLC
MRIGlobal 2014 Annual Report | 9
Our Leaders
DIRECTORS
Malcolm M. Aslin
Aslin Group, Inc. & Alterra Bank
Barbara F. Atkinson, M.D.
University of Nevada, Las Vegas
*Alexander G. Garza, M.D., M.P.H.
Saint Louis University
Richard C. Green, Jr.
Corridor InfraTrust Management, LLC
William A. Hall
The Hall Family Foundation
A. Drue Jennings, J.D.
Kansas City Power & Light (Retired)
R. Thomas Fleener
Executive Vice President,
Chief Financial Officer
& Treasurer
Michael J. Ehret
Senior Vice President
& Director of
Research Operations
Leo E. Morton
University of Missouri-Kansas City
*Thomas M. Sack, Ph.D.
MRIGlobal
Michael Salem, M.D.
National Jewish Health
*James L. Spigarelli, Ph.D.
MRIGlobal (Retired)
*Elected 2014
Reachel A. Beichley, J.D.
Vice President &
General Counsel;
Corporate Secretary
Linda D. Evans
Vice President,
Corporate Human
Resources
Our Trustees
LIFE TRUSTEES
Charles W. Battey
Sprint Corporation (Retired)
Henry W. Bloch
H&R Block, Inc.
David M. Clarke, S.J.
Regis University (Retired)
Martin C. Bicknell
Mariner Wealth Advisors / Mariner Holdings
E. Frank Ellis
Swope Community Enterprises (Retired)
Thomas M. Bloch
Kansas City, MO
Melinda Estes, M.D., M.B.A.
Saint Luke’s Health System
Daniel P. Bolen, J.D., LL.M.
Bank of Prairie Village
Gary D. Forsee
University of Missouri System (Retired),
Sprint Nextel (Retired)
Donald J. Hall
Hallmark Cards, Inc.
Tom Bowser
Blue Cross and Blue Shield of Kansas City
(Retired)
Irvine O. Hockaday, Jr.
Hallmark Cards, Inc. (Retired)
David R. Bradley, Jr.
News-Press & Gazette Company
*Alexander G. Garza, M.D., M.P.H.
Saint Louis University
Robert A. Kipp
Hallmark Cards, Inc. (Retired)
Barrett Brady
Highwoods Properties, Inc. (Retired)
Esther L. George
Federal Reserve Bank of Kansas City
Louis W. Smith
Leawood, Kansas
Michael Braude
Kansas City Board of Trade (Retired)
Douglas A. Girod, M.D.
University of Kansas Medical Center
Morton I. Sosland
Sosland Companies, Inc.
Arthur D. Brookfield, II
Brookfield’s Great Water Company, Inc.
Kent Glasscock
KSU Institute for Commercialization
TRUSTEES
Malcolm M. Aslin
Aslin Group, Inc. & Alterra Bank
Phillip J. Brown
Bud Brown Volkswagen, LLC
Stephen E. Gound
Labconco Corporation
J. Grant Burcham
Missouri Bank and Trust Company
William W. Grant
US Bancorp (Retired)
*Wayne O. Carter, D.V.M., Ph.D.,
D.A.C.V.I.M.
Kansas Area Life Sciences Institute
Greg M. Graves, P.E.
Burns & McDonnell
Engineering Company, Inc.
Michael J. Chesser
Great Plains Energy, Inc. and Kansas City
Power & Light (Retired)
Bernadette Gray-Little, Ph.D.
University of Kansas
Barbara F. Atkinson, M.D.
University of Nevada, Las Vegas
Alan L. Atterbury
Midland Properties, Inc.
Guy H. Bailey, Ph.D.
University of Texas Rio Grande Valley
Kevin G. Barth
Commerce Bank
W. H. Bates, J.D.
Lathrop & Gage LLP
Jonathan E. Baum
George K. Baum Capital Advisors
Raymond F. Beagle, Jr.
Lathrop & Gage LLP
Gordon T. Beaham, III
Faultless Starch/Bon Ami Company
Robert B. Beaham
Faultless Starch/Bon Ami Company
Neeli Bendapudi, Ph.D.
University of Kansas School of Business
William S. Berkley
Tension Corporation
*Pamela R. Berneking
Alterra Bank
Henry J. Cialone, Ph.D.
EWI
Cecil W. Cupp, III, M.D.
Hot Springs Radiology Services, Ltd.
Thomas B. Curran
Rockhurst University
Brady J. Deaton, Ph.D.
University of Missouri
Peter James deSilva
UMB Financial Corporation
Ann Dickinson
Dickinson Financial Corporation (Retired)
Terrence P. Dunn
J. E. Dunn Construction Group, Inc.
John M. Edgar, J.D.
Edgar Law Firm, LLC
Debra Ellies, Ph.D.
OsteoGeneX
David W. Frantze, J.D.
Stinson Leonard Street
Richard C. Green, Jr.
Corridor InfraTrust Management, LLC
Robert K. Green, J.D.
Husch Blackwell LLP
John E. Haaland, Ph.D.
Biosystems, LLC
David E. Hall
Hallmark Cards, Inc.
Donald J. Hall, Jr.
Hallmark Cards, Inc.
William A. Hall
The Hall Family Foundation
G. Richard Hastings
Saint Luke’s Health System (Retired)
Joyce Hayhow
Kansas City Business Journal
B. Spencer Heddens, III
Bank of America, Kansas City (Retired)
MRIGlobal 2014 Annual Report | 11
James A. Heeter
Greater Kansas City Chamber of Commerce
Leo E. Morton
University of Missouri-Kansas City
John J. Sherman
MLP Holdings, LLC
Robert E. Hemenway, Ph.D.
University of Kansas
General Richard B. Myers
RMyers & Associates
USAF (Retired)
*Charles W. Shields
Truman Medical Center
Doranne M. Hudson
University of Missouri-Kansas City
*Jerry P. Jaax, D.V.M.
Kansas State University
*Edward Randolph Jayne, II
Heidrick & Struggles, Inc.
A. Drue Jennings, J.D.
Kansas City Power & Light (Retired)
Mark R. Jorgenson
U.S. Bank
R. Crosby Kemper, III
Kansas City Public Library
Peter S. Levi, J.D.
Polsinelli Shughart P.C.
*R. Bowen Loftin, Ph.D.
University of Missouri
Fred J. Logan, Jr.
Logan Logan & Watson, L.C.
Charles E. Long
Citicorp (Retired)
Fred W. Lyons, Jr.
Hoechst Marion Roussel, Inc. (Retired)
Alan R. Marsh
UBS Financial Services, Inc. (Retired)
Amy McAnarney, CPA
Kauffman Center for the Performing Arts
Mary V. McClure
McClure Management Consulting, LLC
John N. McConnell
Labconco Corporation
*Patrick J. McCown
McCownGordon Construction
John C. McKelvey
MRIGlobal (Retired)
Laura Wells McKnight
Mulberry South, LLC
*Maria E. Meyers
University of Missouri-Kansas City
Michael F. Morrissey
Ernst & Young, LLP (Retired)
Don Nissanka
Exergonix, Inc.
Randall L. O’Donnell, Ph.D.
Children’s Mercy Hospitals & Clinics
David Field Oliver
Berkowitz Oliver Williams Shaw &
Eisenbrandt LLP
*Robert D. Simari, M.D.
The University of Kansas
School of Medicine
Dolph C. Simon, Jr.
Lawrence Journal-World/
The World Company
Scott M. Smith, P.E.
The HNTB Cos. (Retired)
Neal L. Patterson
Cerner Corporation
Timothy Sotos
Clinical Reference Laboratory
Leonard M. Perlmutter
LAP, Inc. (Retired)
James L. Spigarelli, Ph.D.
MRIGlobal (Retired)
John T. Pierson, Jr.
Preco, Inc.
Jimmie T. Stark, CPA
PricewaterhouseCoopers (Retired)
Donald H. Pratt
Western Investments, Inc.
Jack W. Steadman
Kansas City Chiefs/
Hunt Midwest Enterprises (Retired)
Robert D. Regnier
Bank of Blue Valley
Robert J. Reintjes, Sr.
Geo. P. Reintjes Co., Inc.
Lamson Rheinfrank, Jr.
Rheinfrank, Inc.
David A. Rismiller
FirsTier Financial, Inc.
America First Financial Institutions
Management, LLC
Landon H. Rowland
Ever Glades Financial, LLC
Dave G. Ruf, Jr.
Burns & McDonnell Engineering
Company, Inc. (Retired)
Michael Salem, M.D.
National Jewish Health
David L. Sallee, Ph.D.
William Jewell College
Kristy A. Schloss
Schloss Engineered Equipment, Inc.
Kirk H. Schulz, Ph.D.
Kansas State University
James C. Shay
Great Plains Energy and KCP&L
Kent W. Sunderland
Ash Grove Cement Company
Robert J. Swain
Tulsa, Oklahoma
Jefferson W. Tester, Ph.D.
Cornell University
Byron G. Thompson
CCB Financial Corporation
Willis H. Thompson, Jr.
Bank One, Oklahoma (Retired)
Vincent Wagner
Ace Wagner Coaching and Consulting
David A. Warm
Mid-America Regional Council
*Scott Weir, Ph.D., PharmD.
KU Medical Center
*W. Russell Welsh, J.D.
Polsinelli
Walter H. Wulf, Jr.
Monarch Cement Company
Hugh J. Zimmer
Zimmer Companies, Inc.
*New Trustee 2014
Corporate and Research Operations Headquarters
Missouri
Florida
Maryland
Washington, D.C.
National Renewable Energy Laboratory
Golden, Colorado
p: 303.275.3000
www.nrel.gov
Solar Technology Acceleration Center
Aurora, Colorado
p: 303.739.7649
www.solartac.org
Subsidiaries
Virginia
Managed Facilities
Regional Facilities
425 Volker Boulevard Kansas City, MO 64110-2241 | p: 816.753.7600 | www.mriglobal.org
K-State-MRIGlobal Biodefense
Research Coalition, LLC
Manhattan, Kansas
MRIGlobal-Kansas, LLC
Manhattan, Kansas