2014 ANNUAL REPORT TO THE COMMUNITY

Welcome to PNDRI’s 2014 Annual Report

dollars were spent. Roughly half of our funding supported our foundational platform of genetics and bioinformatics. The other half supported our disease-specific research, including diabetes and cancer.

In 2014, our commitment to solving disease challenges by studying how our genes and the environment interact opened exciting avenues to improving lives. As always, we are very grateful for your support in our pursuit.

Best wishes,

John R. Wecker, Ph.D. President & CEO Pacific Northwest Diabetes Research Institute

Dear Friends,

At PNDRI, we believe that insights into disease will come from studying how our genes and the environment interact.

In 2014, we continued to strengthen our capabilities in the foundational science of genomics with the goal of improving our ability to understand the ways in which our environment influences how our genes function.

You can see our commitment to better understanding this interaction in the stories of our research described in this Annual Report.

You can also see our commitment reflected in how we invested resources in 2014. Below is a graphic describing where PNDRI’s research

GENETICS AND BIOINFORMATICS PLATFORM

CLINICAL DIABETES RESEARCH

BASIC DIABETES RESEARCH

OTHER DISEASES

Trans- generational epigeneticsMom said, “You are

what you eat.” She was more right than she knew.

Until recently, scientists believed RNA, molecules that carry information from DNA, stayed inside our cells. Then researchers found in our plasma RNA that had left the cell (now called “exRNA”) travelling through our blood stream, interacting with other cells, and affecting how those cells work. Some of the exRNA is human but some of it is from corn and rice and other foods we eat. Is exRNA from our food interacting directly with our cells? As part of an international team, PNDRI researcher Dr. David Galas is creating methods for analyzing exRNA and its function in the human body. Through research, we may find ways that exRNA can become a therapeutic messenger, carrying treatments and cures to our cells. Opening avenues to improved health.

If genetics is the screenplay for a film, epigenetics is the film’s director. Gene-tics (the script) is typed and printed. But epigenetics (the director) makes adjustments during filming, highlighting key scenes, underemphasizing others. Amazingly, research suggests that later copies of the scripts (our children, grand-children, and even great grandchildren) carry with them traces of our director’s notes. This is called transgenerational epigenetics. Researchers at PNDRI have discovered that, although mice are exposed to long-term high fat diets, epigenetic changes inherited from four generations back protect them from obesity. Discoveries like these could lead to treatments to protect future generations from diseases caused by our Western diet and lifestyle. Opening doors to a healthier tomorrow.

Scientists at PNDRI believe the answer lies in the environment. They, along with an international consortium of researchers, are conducting TEDDY study, The Environmental Determinants of Diabetes in the Young. TEDDY identi-fied tens of thousands of infants with the genetic markers for type 1 diabetes and is following them through fifteen years of age. Which environmental factors trigger the disease and which factors may prevent the disease? In 2014, researchers announced pre-liminary findings including possible triggers for type 1 diabetes. Through their discoveries, researchers will be able to warn pediatricians and parents what children should avoid, thus preventing type 1 diabetes from starting. Improving the health of the next generation.

ex RNA

The TEDDY study

We are more complicated than the genes we inherit.

Not all children with the genetic markers for type 1 diabetes get the disease. Why not?

PNDRI FINANCIALS OPERATING REVENUE 2014Grants and contracts from federal agencies $ 5,767,692 59% Private grants $ 2,081,607 21%Investment income $ 956,904 10%Contributions $ 508,476 5%Lease income $ 309,130 3%Other $ 216,156 2%Total $ 9,839,965 100%

BALANCE SHEET 2014 2013

Total Assets $ 21,975,940 $ 20,571,410

Total Liabilities $ 1,259,744 $ 1,202,241

Net Assets $ 20,716,196 $ 19,369,169

* Fiscal Years Ending September 30

With gratitude to our donors who share our pride and enthusiasm in sustaining an outstanding research program.

720 Broadway, Seattle, WA 98122 I (206) 726-1200 I (800) 745-1527 I www.pndri.org

Thank you to these donors who made contributions during the period from October 1, 2013 to September 30, 2014.

LIFETIME LAUREATESLifetime giving of $500,000 or moreClairmont & Evelyn Egtvedt

Charitable TrustHugh McCall TrustThe Josephine Stedem Scripps

FoundationWilliam R. KlaischeByron & Alice Lockwood FoundationDonald A. and Gladys F. MeyerEduard O. Schreiner and

Helen E. SchreinerIngrid SmithArthur C. and Ellen A. Waters

LIFETIME BENEFACTORSLifetime giving of $100,000-$499,999The Biomembrane InstituteSilas A. Brainard TrustNorman Davis TrustMunro and Eleanor DennisJack and Matilda Dow FoundationKarl H. and Ruth S. EllerbeckOlive W. GlossopFrances C. HunterHussman EconometricsHussman FoundationMalone O. and Kathleen L. HutchinsArdythe and Ray JohnsonStephan R. Martinez* and

Kortney SaupeDouglas and Daryl McCallVirginia W. McConkeyMcKinstry CompanyM.J. Murdock Charitable TrustQuest for Truth FoundationRaymond and Vivian RenshawThe Scheetz FamilyGilliat* and Sherrill SchroederThe Seattle FoundationArnold N. and Hilda G. SmailesAmigo and Mildred SorianoSound Pharmaceuticals, Inc.Swedish Medical CenterTrysk Print SolutionsLucy H. Zavadil Henry Trust

LIFETIME INNOVATORSLifetime giving of $50,000-$99,999Karl* and Anne AschenbachRobert* and Claire BrineMonte E. BrownCassius E. and Rosella GatesCyrus K. Gates EstateWillard and Carol* HeimkesClaude K. and Jennie B. KoetjeHarry D. LawsonRichard J. Omata* and Carol MoodyPerkins Coie LLPQuality Food CentersR. Paul** and Peggy RobertsonHelen Seaborn Trust

DISCOVERY SOCIETYDonors remembering PNDRI in their wills, trusts, and estate plansMrs. Susan AdamsRobert M. ArnoldSilas A. Brainard TrustMonte E. BrownNorman Davis TrustMunro and Eleanor DennisJack and Matilda Dow FoundationClairmont & Evelyn Egtvedt

Charitable TrustKarl H. and Ruth S. EllerbeckVirginia G. Eshelman TrustCassius E. and Rosella GatesCyrus K. Gates EstateOlive W. GlossopFrances C. HunterMalone O. and Kathleen L. HutchinsMary Jane L. JonesWilliam R. KlaischeClaude K. and Jennie B. KoetjeHarry D. Lawson

Hugh McCall TrustDouglas and Daryl McCallVirginia W. McConkeyKaren McGarrigle ReedHelen McCueDonald A. and Gladys F. MeyerHugh and Mary NuckolsEvelyn PlantBernadine PleisArthur and Betty ReichertKirk SalvatoreLouis W. SackettEduard O. Schreiner and

Helen E. SchreinerGilliat* and Sherrill SchroederArnold N. and Hilda G. SmailesIngrid SmithThe Josephine Stedem

Scripps FoundationMargaret SwansonArthur C. and Ellen A. WatersRobert M. Winslow and

Diane M. WinslowLucy H. Zavadil-Henry Trust

ANNUAL DONORSBENEFACTORSFY2014 gifts of $100,000 or moreGilliat and Sherrill Schroeder

INNOVATORSFY2014 gifts of $50,000-$99,999Anonymous – 1 donorClairmont and Evelyn Egtvedt

Charitable Trust

PIONEERSFY2014 gifts of $10,000-$49,999Sherry M. HabaStephan Martinez* and Kortney Saupe

(includes in-kind)Zak Martinkosky and Stefanie HarrisSwedish Medical CenterTrysk Print Solutions

INVESTIGATORSFY2014 gifts of $5,000-$9,999Gene AnthonyMike Boyle*Dan Caldwell* and Bonnie

Brian-CaldwellRebecca Campbell (in-kind)Warren and Kathryn HeylmanHenry Holt and Juanita Garrison*Erik* and Jennifer IversonKeyBankRichard J. Omata* and Carol MoodyThe Scheetz FamilyJoost van Haaren and Cynthia Haba*

EXPLORERSFY2014 gifts of $1,000-$4,999Anonymous – 1 donor51 East Main (in-kind)Alliant Employee BenefitsAmerican Academy for Russian

Martial ArtsOdin and Evie AndersonRick and Lesa AramburuRobert and Pauline Bach

(includes in-kind)Jeff BarkerCarl Byrnes*Chateau Ste Michelle (in-kind)Jeff CoopersmithCôte Bonneville (in-kind)Katherine CroninBill CrosettoPaolo CruzDunham Cellars (in-kind)David and Deena EasternBryon** and Carrina EppBill and Katie FinleyKen and Catherine Fisher*Jerry and Sherry Fisk

(includes in-kind)

Ludovic Fourrage and Valerie Carricaburu

Dina and Jeff FrankDave Herbig and Danita DelimontThomas and Cheryl HobanMrs. Don HofferberSummer HuntingtonAaron and Meghann IsonJack and Matilda Dow FoundationGary Kirk and Norma Fuentes**Sean and Rebecca MacLeodDavid and Ann Martin*Charles and Linda Mauzy*Mark and Kimberly McAlpin

(includes in-kind)Marjorie McDonaldMicrosoft Corporation (matching gifts)Christopher and Colleen MounseyNoreen MurrayNintendo of AmericaNorthstar (in-kind)The Norton FamilyFred Pabst and Cris CannestraJames Papageorge and

Rebecca Bruhn**Personnel Management Systems, Inc.Joe and Lisa PiperPonti Seafood Grill (in-kind)Ivy PrettolOwen-Sullivan Winery (in-kind)Reininger Winery (in-kind)Chas RoyalSaviah Cellars (in-kind)Jeff and Sabrina ScottAlistair and Stacey SloanBill and Katie Teplicky (in-kind)Two Pollard Design (includes in-kind)John and Marcy WalshVa Piano Vineyards (in-kind)John** and Margaret Wecker

VISIONARIESFY2014 gifts of $500-$999Advanced Labels NWWilliam Bernard and Elizabeth CorbettJennifer and Chris CasillasPat and Gail DeGiulioSteve DiPietroRobert DraperEfeste– (in-kind)Joe FugereRobert and Janice GerthAlan GoldwasserJames Gore and Susan DittigJames Gowin and Cynthia EllisglassybabyTom and Tina GrohmanBrent and Genevieve GuinnThomas* and Sara HaywardHeartland LLCHerd Freed Hartz, Inc.The Herbfarm Restaurant (in-kind)Mark and Meghan HoganJohn and Bonnie HutchinsonLen and Linda JohnsonStephanie KornblumGrant and Marci LarsenMichael and Mallory MartinHeather McDonaldMcKinstry Tastebuds (in-kind)Paul and Sue MystkowskiPaul NealDan and Denise NilesEd NoonanJames* and Joann NormanMindy PancoastRichard and Sally ParksSherman and Traci PierceDmitry Pugachev and Olga TenenikaRandy and Christina RiffleGareth Roe and Amy BruhnRobert and Susan Scheid

(includes in-kind)Vincent and Chrishna StevensBrian and Brenda Thompson

Banks and Valerie WardenWendi WarnerThe Willows Inn on Lummi Island

(in-kind)Willows Lodge (in-kind)Mark and Robin WhippleAda Z. WilmarthPaul and Dori Yang Foundation

INQUIRERSFY2014 gifts of $100-$499Jean AmickMary BargaTracy BaynardPeter and Janice BerquistDavid and Cheryll BlairJohn Blair and Meagan AllenDave BolandThe Bullitt FoundationPetra CarlBig John and Kimberly CaudillMark and Susan ClippingerPeter DevisonStephen and Pamela DruggeTom DuganEl Gaucho Hospitality (in-kind)Elisabeth EvansDoug and Terri FisherPhelps and Christel FisherFIVE Restaurant Bistro (in-kind)David Forrester and Aimee Dudley**Howard Frumkin* and

Joanne SilbernerPatricia GaillardGård Vintners (in-kind)Rick Gersbach and Elizabeth

BreakstoneDarlin GrayAndrew Gray and Ariel MartinBob and Jeanne GregoryMari HackettHelen HagopianWilliam Hagopian** and Karen BensonSen-itiroh** and Mitsuko HakomoriShari HallDave Hancock and Lynn ThorburnJim and Allison HandyCraig Harris and Mary Kate O’ConnellStephanie HiranoRandall and Jennifer Hopkins (in-kind)Kendra HubbellPia IglesiasMark and Linda JohnsonJon JurichCharlie and Lisa KaminskiRobert and Lynn Kern* (in-kind)Perry and Kaaren KirkpatrickChricelle A. KlippertLynnette E. KuipersLakeside Lodge and Suites (in-kind)Jackie LasaracinaLease Crutcher LewisLiz LeeMike and Vera LilesSusan and Duane LocknaneJonathan and Tessa LoweSue MadisonNaomi MargolisMeri MartinCasandra MartinChristopher MartinQuauhtli MartinezMichael and Sara MatareseJR McGeeAdonis and Monica McNealStewart MetzArlene R. MeyerRonald and Patricia NelsonRay NeumillerAditi ParanjpyeGarret ParsonsDavid and Jane PekaskyDanny PetersonMegan PriceJulie Railey

Ray’s Boathouse (in-kind)Karen J. McGarrigle ReedBrendan RevilleLonde and Jamie RichardsonChris E. RiveraR. Paul** and Peggy RobertsonBrian RumseyAndrew Schlotfeldt and

Jennifer Moore**Suzanne SchreckSeastar Restaurant & Raw Bar

(in-kind)The Seattle FoundationShadow Mountain Resort & Club

(in-kind)Mario Shaunette and Gail E. MautnerYashar Shayan (in-kind)Ron Sims* and Cayan TopacioDawn SpratleyMike and Kathy StanleyStokes Auction Group, Inc.Marcia TufaroloUBS Financial Services Inc.

(matching donation)Vito’s (in-kind)Brady Walkinshaw (in-kind)Walla Faces Inn (in-kind)Sally M. WeimerThe Weinhard Hotel (in-kind)John WeissTom and Jo WuEliza Wu

HONORARY GIFTS IN HONORAdvanced Labels Northwest: gift in

honor of Stephan MartinezTracy Baynard: gift in honor of

Stephen and Emily’s weddingCheryll Blair: gift in honor of

Marla MorrowKatherine Cronin: gift in honor of

Stephen and Emily’s weddingHeather McDonald: gift in honor of

David, Ann, and Michael MartinMarjorie McDonald: gift in honor

of David and Ann Martin & Martin Family

Marjorie McDonald: gift in honor of Stephen and Emily’s wedding

Ann Martin: gift in honor of Michael Martin

Sara Matarese: gift in honor of David and Ann Martin

Noreen Murray: gift in honor of Stephen and Emily’s wedding

Ronald Nelson: gift in honor of Danielle Whipple

Ronald Nelson: gift in honor of Michael S. Nelson

Tim Paridon: gift in honor of Stephen and Emily’s wedding

Brian Rumsey: gift in honor of Stephen and Emily’s wedding

Timothy Sullivan: gift in honor of Pat Sullivan’s birthday

Eliza Wu: gift in honor of Stephen and Emily’s wedding

IN MEMORYBill Crosetto: gift in memory of

Dr. William B. HutchinsonGloria Duffey: gift in memory of

Florence DelaurentiCarol Heimkes: gift in memory of

Doug HelgesonIlene Norton: gift in memory of

Harry and Frances VeachThe Scheetz Family: gift in memory

of Elizabeth M. ScheetzMarcy Walsh: gift in memory of

John Walsh

* PNDRI Trustee or Emeritus Trustee** PNDRI Staff