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    STRATEGIC PLANFiscal Year 2006-2010

    DIRECTORS OVERVIEW 3

    RESEARCH 11

    TRAINING AND EDUCATION PROGRAMS 31

    GENETIC RESOURCES/REPOSITORY 41

    JAXMICE AND SERVICES 51

    SCIENTIFIC SERVICES 71

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    DIRECTORS OVERVIEW

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    DIRECTORS OVERVIEW

    Executive Summary

    Over the past ten years, The Jackson Laboratory has achieved a level of success unparalleled in

    its history. Driven during the most recent five years by a doubling of the NIH budget, the total

    revenue for the Laboratory grew from $41 million in 1995 to $128 million in 2004. This

    increase in funding provided the wherewithal to increase the research personnel from 290 to

    over 500, to increase total employment to more than 1300 team members, and to expand the

    Laboratory to include a significant presence in West Sacramento, CA. Over the past 5 years, theLaboratory grew at double-digit rates for both research and Jax Research Systems (JRS).

    Given a dramatic though expected leveling off of the NIH budget, it is unlikely that this rate of

    growth at the Laboratory can be sustained. Nor did it come in the first instance without serious

    costs to the institution. Looking back, it is clear that overhead grew more quickly than either our

    research or JRS programs; it is clear that the research effort and the outreach initiatives of JRS

    were not coordinated; and it is clear management decisions were made without the underlyingplanning necessary to ensure that they were in the best interests of the organization.

    In response to these evolving circumstances, the entire organization has engaged in an effort to

    develop a new 5-year strategic plan for the Laboratory. With some parts of this effort ongoing for

    most of the past two years, it has involved an enormous commitment on the part of a large

    number of individuals across the Laboratory. The research staff has worked in five planning

    groups to identify new areas of opportunity and recruiting needs essential to ensure evolving

    approaches in their fields of expertise are well represented and that critical mass can be achieved.The JRS leadership has identified and projected market trends and the Laboratorys capability to

    adapt to them productively and efficiently. The Training and Education group and Genetics

    R h id ifi d i i i h i d h ddi i l i i

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    The plan described in this report looks forward and describes the programs and initiatives that

    the Laboratory plans to undertake in fiscal years 2006 through 2010. It involves controlled

    growth, careful financial oversight, and careful management over the next five years. A livingdocument and one that is sure to evolve as events overtake us and we overtake events, this

    strategic initiative charts an exciting vision for our collective future. As we become successful in

    initiating the carefully integrated activities described herein, the Laboratory will grow and

    improve in many ways:

    Key Directions and Initiatives

    Efforts across the Laboratory will become better unified; once again, our scientists willbecome JRS best users and JRS will become our scientists most trusted supplierof

    mice and, later perhaps, of its scientific services.

    Our research effort will grow from 36 to 46 staff members; we will approach critical massin five primary research areas, all based on the mouse and mouse-based genetics. Our

    scientists will benefit through more opportunities for on-site collaboration, and the

    Laboratory will be less subject to the vagaries of retirement and relocation of critical Staff

    members.

    JRS will grow systematically and carefully. Relying on its renowned and growingreputation for genetic consistency and benefiting from an intense effort during the first

    two years of the plan to develop a world-class ERP system, JRS will become the most

    trusted supplier of mouse models. JRS young services initiatives in on-demand colony

    services, speed cryopreservation and expansion, custom breeding, and in-vivo testing will

    grow thoughtfully. Sound planning, at-hand services opportunities, and solid return oninvestment will underlie all new investment for JRS.

    O d ti d t i i i ti th f th d l f

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    Comprehensive training and education programs Superb scientific administrative support staff Engaged Board of Governing Trustees

    Weaknesses

    Areas of strength across the Laboratory require integration to achieve maximum synergy Below critical mass in immunology, neurobiology, developmental and reproductive

    biology, and metabolism

    Lack of critical expertise in the areas of cell biology, biochemistry, and physiology thatwill contribute to innovative new strategies for phenotyping mice

    Lack of critical mass in bioinformatics and computational biology, particularly as itrelates to systems and network-based approaches for biological investigation.

    Under this plan, the Laboratory will continue to focus on the mouse and mouse genetics for the

    purpose of studying human development and disease. The research organization will grow

    significantly to increase the number of principal investigators to about 46, which represents a

    significant movement toward achieving a critical mass of 55 investigators with 5 different areas

    of scientific focus. The plans to improve and expand our resource distribution and education

    efforts are also presented. The financial basis that allows the plan to be successfully implemented

    has been developed and is part of this plan. Numbers foot from section to sectionboth in terms

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    Achieve integration among geneticists, cell biologists, biochemists, physiologists andpathologists using mouse models to enable new breakthroughs in human biology and

    disease

    Integrate our existing strengths in research, resources and training to create a unifiedorganization with both internal and external synergies

    Ensure integrated access to the Laboratory resources and services for the Laboratoryscientists, their collaborators, and those in the external scientific community

    Overall, this strategic plan coupled with the action items presented in the appendices, should

    ensure that the Laboratory continues to be successful and to achieve the following institutional

    goal:

    In five years become the scientific center for integrating mouse genetics/genomics and

    biological research to advance human health.

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    RESEARCH

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    RESEARCH

    Executive Summary

    The Jackson Laboratory currently houses 36 wet lab and bioinformatics Scientific Staff members

    who use the mouse and mouse genetics to understand normal human biology and disease.

    By most measures, the Laboratorys research effort has succeeded extremely well over the past 10

    years. Direct research funding has more than tripled over this period from $13 million in 1995

    to over $44 million in 2004 (see Figure 1). Total funding, including indirect costs, increasedfrom $20 million in 1995 to $63 million in 2004.

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    room space, a world-leading suite of scientific services, ready access to low- and no-cost mice,

    outstanding research administrative support, and an efficient and effective overhead

    infrastructure. Existing services such as pathology will be expanded to meet growing needs andprovide new facilities such as a viral vector suite to support cutting-edge research.

    Approaching the critical mass of investigators at the Laboratory and planning new initiatives in

    Integrative Biology using mouse models will be critical to our success. The Laboratory will

    continue to focus on the mouse and mouse genetics research as a surrogate for human biology

    and disease, and will strive to maintain its prominence in genetics, particularly as it relates to the

    analysis of complex traits. Additional scientific staff will be recruited to increase our expertise in

    phenotyping mice at the molecular, cellular, physiological, and anatomical level and to add

    greater depth in scientific areas critical to the long-term success of the Laboratory. Using in silico

    methodologies to model in vivo biology, we will also establish a stronger presence in Biomedical

    Computing to support a new initiative in the Integrative Biology of complex traits.

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    Situational Analysis

    Strengths

    The quality of its scientific staff and support personnel is one of The JacksonLaboratorys major strengths. One of the 100 largest recipients of National Institutes of

    Health grants in the nation, the Laboratory has achieved a 50% NIH grant success rate

    compared with a 30% rate for all institutions. Benchmarking Jackson Laboratory

    investigators with those at comparable institutions such as the Cold Spring Harbor

    Laboratory and the Salk Institute has revealed that our investigators are highlycompetitive from the standpoint of research dollars raised per investigator. Our

    investigators average $1.6 million/investigator, compared with $670K and $960K per

    investigator at Cold Spring Harbor Laboratory and The Salk Institute, respectively.

    The Laboratory is renowned for its use of the mouse and mouse genetics for studyingmammalian biology and disease. It is a unique organization that has substantial expertise

    in:

    o Identifying and characterizing new spontaneous mutations, particularly thosethat arise in the large production colonies in JAX Research Systems;

    o Generating new mutations using a combination of approaches that involvechemical and targeted mutagenesis, as well as the ability to generate transgenic

    lines of mice;

    o Developing, analyzing and maintaining hundreds of inbred, congenic, consomic,and recombinant inbred lines of mice; and

    o Analyzing complex traits, including protocols for developing mouse crosses tomap traits and for developing innovative software tools for analyzing data. Th J k L b h d l d hi h h h h i bili i h

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    The Laboratory has initiated and cultivated increasingly meaningful interactions withscientists and educators within the State of Maine. In addition to the IMB funded in

    part by a National Science Foundation Experimental Program to Stimulate CompetitiveResearch (EPSCoR) grant these include:

    o Funded (NIH/Center of Biomedical Research Excellence COBRE)collaborative interaction with the Maine Medical Center Research Institute in

    stem cell science;

    o Funded (NSF) graduate program in Functional Genomics with UMaine;o Funded (NIH/Biomedical Research Infrastructure network BRIN)

    infrastructure improvement grant to improve undergraduate education inbiomedical sciences within the State of Maine encompassing 4 private colleges

    (Colby, Bates, Bowdoin, College of the Atlantic), University of Maine and two

    research institutions (Mount Desert Island Biological Laboratory and The

    Jackson Laboratory);

    o Funded (Howard Hughes Medical Institute) program with UMaine to instructhigh school science teachers in basic biomedical research science; and

    o Funded interactive television network connecting most of these institutions andallowing the distribution of graduate courses between them.

    We have developed new programs that give us the ability to take advantage of advancedgraduate students, postdoctoral fellows, and visiting scientists. This is creating an

    environment that produces new ideas and generates intellectual property for the long-

    range support of the institution.

    Weaknesses

    The Laboratory lacks critical mass in the research programs and needs to expand in

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    Areas of strength throughout the Laboratory function as silos within the organizationand are not integrated to achieve maximum synergy.

    The Scientific Staff is aging, and much expertise in mouse genetics will be lost throughretirements over the next 5-10 years.

    While the staff scientists are recognized for their expertise in mammalian genetics,particularly in the area of complex traits, there is a lack of adequate critical mass and

    expertise on the faculty for an in-depth biological analysis of phenotypes in the mouse at

    the molecular, cell biological, physiological, pathological and anatomical levels.

    There is a lack of critical mass in several areas of bioinformatics and computationalbiology that relate to integrative and systems biology.

    The Laboratory has had a policy of not allowing infectious agents and human cells andtissue samples to be used in Bar Harbor. This policy was primarily to ensure that there is

    no risk of infecting our mouse production colonies with deleterious agents. It hasprevented the Laboratory from exploiting new research and funding opportunities,

    including work with human embryonic stem cells, viruses, and other infectious agents.

    Opportunities

    The mouse is the ideal organism for investigating the causes and therapeutic orpreventative strategies for genetically determined diseases such as cancer, obesity anddiabetes, and resistance/susceptibility to infectious organisms. Since its inception, The

    Jackson Laboratory has been dedicated to the goal of using mouse genetic models to

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    Growing interest in developing a School for Biomedical Science at the University ofMaine would provide an ideal opportunity for our Scientific Staff to teach and mentor

    graduate students.

    New technologies that allow the analysis of the complete genome, transcriptome (mRNAexpression), proteome (protein expression), metabalome (physiological genomics),

    phenome (exhaustive phenotype in multiple strains of mice), and other omics

    approaches are making it possible to conduct new types of experiments in integrative and

    systems biology. These new approaches for conducting biological research are not

    reductionist in nature, but rather embrace the complexity associated with mostbiological systems and problems. They will require an unprecedented level of

    collaboration among biologists, geneticists and comptutational scientists. These new

    approaches for integrative and systems biology will rest on strong informatics platforms

    such as those that exist at the Laboratory.

    Threats

    Research funding for the Laboratory comes exclusively from soft money sources and issubject to federal priorities that are constantly changing. The Laboratory does not have

    an endowment to sustain its research effort in the event of funding shortages or to

    seed new ideas. Surplus generated by JRS, which is subject to fluctuations in the mouse

    sales market also driven by NIH funding, currently fills both the ongoing shortfall in

    research dollars (approximately $0.17/$1.00 of research) and provides the funding

    necessary to launch young investigators.

    NIH is increasingly focusing on translational research the direct application off d t l h t h di Th L b t ill d t b ild

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    The National Cancer Institute Cancer Center Support (Core) Grant is the primaryfunding source for the scientific services program that is critical to our research effort. If

    the Cancer Core Grant were not renewed, it would seriously impact the research effortat the Laboratory. Previous competitive renewals of the Core Grant clearly pointed to

    the Laboratorys deficiency in the number of investigators directly engaged in cancer

    research, particularly those funded by NCI. There will be an increasing challenge to

    position the Laboratory to renew the Cancer Core grant, in light of a new administration

    at NCI, increasing priorities in supporting translational research in which the Laboratory

    has no direct role, tremendous financial pressures based on a no-growth budget, and the

    failure of the Laboratory to substantially increase the number of cancer biologists on the

    research staff.

    Focus on research areas directly related to bioterrorism such as the genetic control ofsusceptibility to microorganisms is likely to increase. The Laboratory currently does not

    have the ability to conduct research in infectious diseases and will not be able to take

    advantage of these opportunities.

    The Laboratorys location in Bar Harbor is both an opportunity and a threat to oursuccess. While the environment is attractive to some, lack of spousal employment

    opportunities, inadequate day care and rapidly increasing housing costs complicate the

    recruitment process.

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    Strategic Direction

    The Laboratory will continue to focus on the mouse and mouse genetics for the purpose ofstudying human biology and disease. The research organization will grow significantly to

    increase the number of principal investigators to 46, which represents a significant movement

    toward ultimately establishing a critical mass of 55 investigators at the Laboratory. This growth

    will ensure that the Laboratory continues to be at the forefront of mammalian genetics research,

    particularly in the area of complex traits. Additionally, new scientists will be recruited to the

    Laboratory to ensure that there is adequate talent to conduct cutting edge research in our core

    areas of interest in neurobiology, immunology, reproductive/developmental biology,metabolism, and bioinformatics/computational biology. Using in silico methodologies to model

    in vivo biology, we will strive to establish a stronger presence in Biomedical Computing to

    support a new initiative in Integrative Biology. Through this plan, our scientists will benefit

    through more opportunities for on-site collaboration, and the Laboratory will be less subject to

    the vagaries of retirement and relocation of critical Staff members.

    To accomplish this plan, we have developed the following strategic objectives:

    1. Retain, Nurture and Develop Existing Staff

    The major strength of The Jackson Laboratory is the quality of its Scientific Staff. We cannot

    afford to lose the staff we have, and we must work to meet their needs:

    With the completion of the Functional Genomics Building (FGB) and the East ResearchBuilding (ERB), office and laboratory space needs will be met for each scientist, withlaboratory sizes in the middle of the range recommended by NIH guidelines. The

    Laboratory currently offers an average of 155 net square feet per lab worker as compared

    to the recommended NIH range of 133 to 188 net square feet New space coming on

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    Figure 2. TJL Research Space FY05-FY10

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    The Laboratory will continue to support the postdoctoral program to ensure that PIs atthe Laboratory have access to excellent postdoctoral trainees.

    2. Sustain Current Expertise in Mutagenesis, Positional Cloning, And Complex Trait Analysis

    Approximately 7 members of the senior Staff are approaching retirement age. These

    investigators have extensive experience in mapping genes; analyzing spontaneous and chemically

    induced mutations; using inbred, congenic, recombinant inbred and consomic strains of mice

    for complicated genetics experiments; and analyzing complex traits. While an individuals timing

    with regard to retirement is a personal decision, the Laboratory is planning now to ensure

    adequate space and financial resources to recruit new scientists when these individuals retire. To

    fill slots opened by retirements, we will recruit geneticists with expertise in mouse genetics,

    complex traits mapping and analysis, as well as investigators with expertise in new genetics

    technologies (e.g. RNAi).

    3. Increase the Number of Staff Scientists to Achieve Minimum Critical Mass in Key ResearchAreas while Adding Depth to Existing Areas of Biological Expertise

    While the research effort has grown considerably over the past 10 years, the number of Principal

    Investigators has not changed substantially. With 36 PIs (31 wet-lab scientists and 5

    informatics/computational biology investigators), the Laboratory does not have sufficient critical

    mass to sustain its research effort into the future. Unlike more urban scientists, our investigators

    do not have access to a broad base of other colleagues located in an adjacent department oranother institution across town. Moreover, the nature of science is changing, with greater

    emphasis on collaboration among investigators within a particular area of expertise and

    especially among investigators on a multidisciplinary basis. Based on the analysis described

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    While the Laboratory will maintain considerable expertise in genetics, there is also a need to

    recruit biologists who use mice to study the molecular, cell biological, and physiological basis for

    human biology and disease in these focus areas. We will also need to maintain our leadershipposition in bioinformatics/computational biology. Having a balanced Scientific Staff with

    bioinformatics and computational biologists working together with geneticists and other

    scientists who use mutant mice to study biological processes will be the focus of Staff

    development efforts.

    Planning groups have been formed, comprised collectively of all investigators at theLaboratory (Table 1).

    Table 1. Planning Groups

    Neuro Immun/Hematol BI/CB Metab Develop

    Frankel Barker Eppig, Janan Beamer Eicher

    Ackerman* Harrison Churchill* Davisson Eppig, John

    John Leiter Ringwald Leiter Gridley*Naggert Roopenian* Blake Paigen*, B Knowles

    Nishina Shultz Bult Barak Handel

    Burgess Peters Graber Donahue deVries

    Cox Serreze Kadin Sundberg

    Johnson Chervonsky Richardson Lyons

    Chang Golovkina Wang

    Letts Li

    Seburn SoperSmith Bergstrom

    Zheng

    *R i h R i i C i

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    Neurobiology/Neurosensory 4 additional scientists With interests that cover excitability, neurodegeneration, neurodevelopment,

    neuromuscular function and neurosensory function; interest is specifically forindividuals with a research emphasis in cell biology, electrophysiology, neuroendocrine

    function, neuroimaging or sensory signal transduction.

    Metabolism 3 additional scientistsWith expertise in obesity, type II diabetes, osteoporosis.

    Developmental/Reproductive biology 4 additional scientists With expertise in areas including gametogenesis, preimplantation development, sexdetermination, gonad development, stem cells, and postimplantation development.

    Bioinformatics/Computational Biology 4 additional scientists With expertise in gene/protein networks and molecular pathways, comparative

    genomics, modeling multicellular systems, computational tool development, complexity

    and chaos theory, and natural language processing. Consistent with the recent RFA

    announced by the NIH soliciting proposals to establish National Centers for Biomedical

    Computing, this initiative will bring computational scientists and computational

    biomedical scientists to the Lab and foster collaboration between them and the Labs wet

    lab scientists to capture and integrate the complexity of information that will be essential

    to crossing new thresholds in understanding human development, disease, and targets

    for disease therapy.

    As part of our recruiting effort, we will attempt to increase the number of investigators that bothfit into our major areas of scientific focus and are also directly engaged in cancer research.The

    NCI Cancer Core grant will be up for its competitive renewal in February of 2006, and the site

    i it ill i M f 2006 F th t t l l th i h d t f

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    based on hiring the best and the brightest, and we will continue to choose only the best

    scientists to join the Staff at the Laboratory;

    Cast a broad net for scientists in all areas where the Laboratory needs additionalexpertise. A general advertisement announcing positions in all areas, including cancer

    research, first appeared in Science magazine on Sept. 17, 2004;

    Recruit up to 3 new investigators each year for the next 5 years. This is the maximumnumber of investigators that can be absorbed in order to assure quality mentoring.

    Evaluate annually which hires were made and then adjust hiring strategy to meet needsin the individual areas of scientific focus; and

    Achieve a balance among Associate, Staff, and Senior Staff Scientists. We anticipate 7retirements from the ranks of Senior Staff Scientists, promotions of 7 Staff Scientists to

    Senior Staff Scientists, and promotions of 6 of the 7 Associate Staff Scientists to Staff

    Scientist. Given this scenario, the faculty would be top heavy with 17 Senior Staff, 10

    Staff Scientists, and only 1 Associate Staff Scientist. If we hire 1 Senior Staff Scientist (as

    a replacement for the Director of Research) and 16 Associate Staff Scientists over the

    next five years, we will more or less balance the faculty with a slightly larger number of

    Associate Staff to allow for about 20-30% attrition without distorting the overall balance.

    The above recruiting plan presents numbers based on hiring mainly Associate Staff Scientists.

    We will consider recruiting more senior members of the Staff, including Staff Scientists and

    Senior Staff Scientists. However, by doing do, more space would need to be allocated to thesemore senior recruits, and the total number of recruits would have to be reduced accordingly.

    Also, we will remain flexible to use some of the available space to allow our existing scientists to

    d th i b d th i t i Thi ill l i t th th t ill b

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    Figure 4 illustrates total projected funding for the new recruits outlined in the above schedule.

    The Laboratory provides initial start-up support; as external funding is secured reliance on Lab

    funds decreases until the recruit is fully funded by external funds. The continued institutional

    support reflected below indicates the sustained recruitment effort planned for the next five

    years. While the funding plan assumes a net outlay of $900k per wet lab recruit and $500k per

    informatics recruit, our experience has been that the average recruit rarely requires those full

    amounts. However given the slowed growth of federal funding, and the need to anticipate

    possible unsuccessful recruitments, we have budgeted institutional support at those levels,

    ensuring sufficient funds to accommodate longer start-up time frames. The funding plan furtherassumes the average recruit will require two years to obtain modest external funding, three years

    to obtain substantive outside funding (typically an R01 or equivalent), and five years to become

    fully funded independently.

    The above assumptions are based on the recruitment of associate staff members. The plan

    additionally includes a two year start-up package in FY06-FY07 for a senior staff scientist as

    Director of Research; it is anticipated this individual will have an externally funded research

    program equivalent to approximately two R01s.

    Table 2. Scientific Staff Recruitment Schedule

    Number of Staff per Fiscal Year

    05 06 07 08 09 10

    Current Staff 36 36 39 41 43 44

    Projected departures (1) (1) (1) (1) (2) (1)

    Projected Additions 1 4 3 3 3 3

    Total Staff 36 39 41 43 44 46

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    additional bioinformatics space. The space plan shown in Table 3 includes space for existing

    investigators programs to grow modestly as well as to handle new recruits and replacement of

    retirees. Late in this 5-year planning period, the Laboratory will begin another researchexpansion planning cycle in order to support growth from 46 Scientific Staff members to 55

    Scientific Staff members.

    Table 3. Research Space Deployment Schedule

    Projected Projected Fiscal Year

    Available occupancy Projected occupant 05 06 07 08 09 10

    Research Expansion1 wet lab - FGB FY05 FY05 (program expansion)

    1 wet lab - FGB FY05 FY05 (program expansion)

    1 wet lab - ERB FY06 FY06 (program expansion)

    1 wet lab - ERB FY06 FY06 (program expansion)

    1 wet lab - ERB FY06 FY06 (program expansion)

    1 wet lab - ERB FY06 FY06 (program expansion)

    1 wet lab - ERB FY06 FY06 wet lab recruit 1 wet lab - ERB FY06 FY06 wet lab recruit

    1 wet lab - ERB FY06 FY07 wet lab recruit

    1 wet lab - ERB FY06 FY08 wet lab recruit

    Existing wet lab space - available by retirements/departures

    1 wet lab - BRL FY05 FY05 wet lab recruit

    1 wet lab tbd FY06 FY06 Director for Research

    1 wet lab tbd FY07 FY07 (program expansion)

    1 wet lab tbd FY08 FY09 wet lab recruit

    1 wet lab tbd FY09 FY10 wet lab recruit

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    4. Develop and Sustain World Leading Science Facilities and Services

    The Laboratory provides world-class science services and facilities to support its investigators incarrying out their research. Continuing to maintain this advantage requires constant vigilance to

    address shortcomings and to adopt new technologies in advance of the bulk of the research

    community. The Laboratorys science services and facilities plans are described in other chapters.

    Mission critical issues are identified here:

    Develop a strong program in Mouse Pathology at the Laboratory; Develop new facilities, services, and/or collaborative relationships that will enable our

    Scientific Staff to work with viral vectors, infectious agents, human embryonic stem cells,

    and other human tissues and cell lines;

    Secure renewal of the NCI Cancer Core Grant through enhanced capabilities in cancerresearch, participation in the Cancer Bioinformatics Grid (caBIG), integration of the

    Laboratorys efforts with the Mouse Models for Human Cancer Consortium, and close

    collaboration with the Institute for Molecular Biophysics; and

    Secure increased funding for bioinformatics and, particularly, computational biology, byinitiating a planning and long-term fundraising effort to position the Laboratory as a

    National Center for Biomedical Computing.

    5. Achieve External Synergies

    While it is important to achieve a critical mass of investigators in Bar Harbor, the Lab will still

    need to enhance its outreach to investigators at other institutions. We plan to do this by:

    E h i h i i i i i b d l i bb i l/ h

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    o Institute for Molecular Biophysics in Optical Microscopy/nanotechnology;o University of North Carolina, Harvard Medical School for proteomics; ando Undergraduate teaching institutions and Mount Desert Island BiologicalLaboratory to ensure state and federal infrastructure funding through the

    Maine Biomedical Research Coalition.

    Research Pro forma

    In addition to individual investigator-initiated grant support and new investigator support, the

    research budget includes large programs supported by center grants, program project grants, and

    cooperative research agreements; institutionally supported interim support; pilot projects; the

    post-doctoral and graduate programs; and scientific services.

    actual forecast

    (in millions) FY04 FY05 FY06 FY07 FY08 FY09 FY10

    Revenue

    Grant Revenue 36.1 35.6 36.4 37.5 38.6 40.6 42.2

    Endowment Revenue 0.4 0.5 0.5 0.5 0.5 0.5 0.5

    Total Revenue 36.5 36.1 36.9 38.0 39.1 41.1 42.7

    Expenses

    TJL Expenses 2.2 2.3 2.6 3.3 3.5 4.0 4.1

    Grant Expenses 34.8 34.3 34.8 35.8 36.8 38.8 40.3

    Endowment Expensed 0.4 0.5 0.5 0.5 0.5 0.5 0.5

    Total Expenses 37.4 37.1 37.9 39.6 40.8 43.3 44.9

    Indirect Cost Revenue 18.1 18.1 18.6 19.2 19.8 20.9 21.7

    Overhead Expense 26 3 28 4 30 3 31 9 32 8 33 6 34 8

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    Table 4. Research Major Capital Project Plan

    Timeline

    Project Cost FY05 FY06 FY07 FY08 FY09 FY10 Goal

    LCC-3RD FL

    BIOINFORMATICS $ 3,300,000

    Space for New CompBio

    recruits and/or expansion of

    existing pgrms 4-6 PI groups

    SNELL RENO (BI PH4) $ 1,300,000

    Space for New CompBio

    recruits and/or expansion of

    existing pgrms 2-3 PI groups

    Computational

    Biology/BioInformatics

    MACHINE ROOM

    REPLACEMENT $ 1,800,000

    In coordination with broad

    IT strategy, provide

    infrastructure support.

    PHASE 1 RESEARCH

    EXPANSION & ASSOC

    INFRASTRUCTURE $ 26,486,000 *

    * Research Expansion

    funding from Philanthropy

    PHASE 2 RES EXP

    ERB/COMMONS &

    INFRASTRUCTURE $ 34,616,000 *

    * Research Expansion

    funding from Philanthropy

    RECRUIT & STAFF

    RENOS/FITOUTS SNL-

    NRB-ERB $ 2,140,204

    Renovations and fit outs for

    recruits

    SNL 4315/4325 FULL

    RENO $ 314,000

    Renovation per Research

    Expansion Plan

    MISCELLANEOUS

    PROJECTS $ 1,200

    LabSpace(principalInvestigatorAssignme

    nts)

    POD2 - ERB (planning) $ 250,000

    Planning & development

    for potential future

    expansion

    Phase 9- (FGB) Animal Adds 5,158 boxes in

    Res

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    TRAININGAND EDUCATION

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    TRAINING AND EDUCATION PROGRAMS

    Executive Summary

    New knowledge is the quest of the research scientist. Translating that knowledge, and the

    process used to obtain it, to the scientific and lay communities is the function of Training and

    Education at The Jackson Laboratory. To accomplish this, a suite of programs has evolved at the

    Laboratory, ranging from updating and polishing the skills of postgraduate scientists, to

    preparing students for a career in science, to providing a view of genetic research for

    kindergarten through masters degree students. One-on-one predoctoral and postdoctoralresearch is the responsibility of the Research Staff, while the Courses and Conferences programs

    and the K-18 science education programs are overseen by the Training and Education staff.

    The Laboratory hosts a variety of courses, meetings and workshops designed to maximize

    professional scientific interaction for students and established investigators alike. These

    gatherings serve a critical function both in maintaining currency within various scientific

    disciplines, and improving or enhancing the informational exchange between disciplines. In the

    context of the genetic research and resources offered by The Jackson Laboratory, these public

    forums show new and established scientists how the laboratory mouse may be used as a tool to

    understand basic mammalian biology and human disease. In 2003, 1,240 scientists from around

    the world participated in these programs, with total offerings of 24 courses, workshops and

    conferences, compared to nine in 1997. The 2004 program, which concluded in November,

    featured 32 separate events sponsored by Courses and Conferences.

    The Laboratorys educational programs include the nationally renowned Summer StudentProgram, which provides high school and college students with an opportunity to conduct

    independent research under the guidance of Staff scientists. More than 2,000 students,

    i l di N b l l h i i d i h Th 2004 l h

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    Situational Analysis

    Strengths

    Strong, well-considered programs and a seasoned, dedicated staff are in place. The Laboratory is now the preferred meeting place for scientists who model the genetic

    control of human development and disease in mice.

    In 2003, 1,240 participants attended 24 courses, workshops or meetings, 17 of whichwere NIH-funded. Two meetings yielded published meeting reports. Press Week, held in association with the Short Course in Medical and Experimental

    Mammalian Genetics, was attended by 20 nationally known science reporters. Their

    interviews of the faculty from the Laboratory and abroad influence the public perception

    of genetics.

    The Summer Student Program in 2004 included 34 students (10 high school, 24undergraduates; 7 minority); academic-year interns totaled 19 (13 high school, 6

    undergraduates), and 3 workshops were held for Hancock County science teachers.

    600 children come to the Laboratory through school visits and Kids Science Nights. The Development Office publishes alumni updates and coordinates alumni affairs and

    reunions.

    The Educational Programs Manager serves on the Board of Advisors, Maine Math and

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    o Space is needed for breaks, lunches, and poster sessions that is permanent(screened-in porch adjacent to Lodge) to allow extension of the conference

    season. Tents do not work well and create an eyesore on the lawn.o Contiguous office/workspace for the Courses and Conferences office needs to be

    identified. Callendar House could possibly be considered for this purpose.

    o Evaluation is required to determine if renting the Bar Harbor Club or Regency issufficient for some larger meetings and if more living facilities are needed for the

    faculty and some students/participants (currently available: Lowseas, Woodlands

    Cottages, Callendar Cottage, Highseas, except June to mid-August, and

    Callendar House).

    There is no dedicated institutional/technical backup for course faculty members. Federal funding requires reapplication and rereview and can not be considered a stable

    for summer student funding.

    Opportunities

    To become the center for information exchange, education and training. To establish The Jackson Laboratory as the preferred option for premier scientific

    courses and conferences.

    To publicize andinstitutionalize the program. To introduce young people to scientific research in genetics/genomics, and the

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    Strategic Direction

    1. Establish The Jackson Laboratory as the preferred option for premier scientific coursesand conferences. Publicize and institutionalize this program. Develop innovative strategies to identify cross-disciplinary topic areas. Then develop a

    series of meetings set at the edge of the Road Map, the thought leaders program.

    Provide a forum and meeting place for contemporary topics in genetics/genomics. Provide access to cutting edge laboratory techniques, for which we wish to be known, or

    in areas TJL must learn, through hands-on and demonstration courses in the

    experimental course laboratory.

    Provide access to new cutting edge Computational/Bioinformatics techniques throughhands-on, demonstration, and didactic course work.

    Modest expansion will be achieved by careful evaluation and honing of continuingprograms and additions where needed.

    Specific objectives in the next five years include:

    o Town water piped to Highseas (and Lowseas), so that Courses and Conferences maybe operated year-round.

    o Move Courses and Conferences office to adequate space.o Interact with internal departments such as Laboratory Animal Health, Scientific

    Services and Computing to purchase adequate help for hands-on courses; and with

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    2. Introduce young people to scientific research in genetics/genomics, and the

    ethical/legal/societal issues that arise from scientific investigation.

    Develop science programs to educate young people from the community, the state, andthe nation. Strong programs bring community support and voter understanding of local

    and national scientific issues.

    Engage alumni to provide scientific and economic aid for all Laboratory programs.Specific objectives in the next five years include:

    o Expand successful HHMI-supported program with the University of Maine to give ahands-on research experience to graduate students who plan to be high school

    teachers.

    o Improve didactic portion of the Summer Student Program by providing discussionsin key areas of importance, such as ethics and career counseling.

    o Extend the Laboratorys 2nd grade Bacteria Unit to more schools in the state byusing volunteers.

    o Bring more members of the Scientific Staff into student interactions, and enlist ascientist to preview a new course for grade school children in heredity.

    o Continue to improve minority and underrepresented participation.o Convert north attic space of Highseas into living space, basement space into a

    caretakers apartment, and provide year-round water and parking.

    o Establish new sources of funding for science education.o

    Become an authoritative source for establishing a knowledge-based economy inMaine.

    o Increase the visibility of summer student, intern and high school teacher programs inthe state nationally and internationally

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    The following table outlines projected program participation from the current fiscal year

    through 2010. We project a modest increase in Courses in Conferences attendance (~+5%

    annually) due to an anticipated increase in the number of workshops. The education programsare likely to remain at present participation levels.

    Table 5. Projected Participation in Courses and Conferences

    Event 2005 2006 2007 2008 2009 2010

    Short Courses 5 5 6 6 7 8

    Workshops 13 14 15 16 18 20

    eetings 8 8 9 9 10 10

    Total Events 26 27 30 31 35 38

    # Total Participants 1,685 1,755 1,800 1,860 1,925 2,100

    Projected Participation in Education Office Programs

    Program 2005 2006 2007 2008 2009 2010

    Summer Student Program 35 35 35 35 35 35

    Academic Year Program - High School Students 10 12 12 12 12 12

    Academic Year Program - College Students 4 4 4 4 4 4

    Academic Year Program - MTS Program Students 5 4 7 7 7 7

    Outreach 500 500 500 500 500 500

    Training pro forma

    (in millions) FY04 FY05 FY06 FY07 FY08 FY09 FY10Revenue

    Grant Revenue 0.8 0.8 0.8 0.8 0.8 0.8 0.8

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    As indicated in the above financials, the training and education program covers direct expenses

    via grant and fee revenues. Courses and Conferences program growth is covered primarily by

    increased fee revenues. However, because training and education grants do not reimburse foroverhead the program is unable to fully recover all costs. Cumulative program deficit FY06-

    FY10: $4.5M.

    Capital

    The primary capital projects identified for The Laboratorys training program include much-

    needed upgrades to our Highseas facility.

    Table 6. Training Major Capital Project Plan

    Timeline

    Project Cost FY05 FY06 FY07 FY08 FY09 FY10

    Highseas Town Water

    Installation $ 950,000

    Highseas Interior

    Improvements $ 75,000

    Callendar House

    Improvements $ 2,200,000

    Highseas InteriorImprovements $ 440,000

    $ 3 665 000

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    GENETIC RESOURCES/REPOSITORY

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    GENETIC RESOURCES/REPOSITORY

    Executive Summary

    The scientific community produces and uses an ever-increasing array of mouse models. Some of

    these have broad utility; other irreplaceable models are of great scientific significance but are

    designed to address specific research questions and so are in lower demand. The Jackson

    Laboratorys resource mission encompasses more than 2,800 strains, 97% of which are uniquely

    supplied by the Laboratory. The extent of these holdings significantly enhances our

    international prestige and benefits our research and training missions. Yet, capacity has beenreached to handle new strains using existing processes. The Laboratory must pioneer new ways

    to manage resources including new methods for cryopreserving gametes and embryos and

    recovering mice quickly and cost-effectively to meet the international scientific communitys

    expectation that we take the lead in preserving and distributing these rare strains. If the

    Laboratory does not move rapidly on this initiative, others will take the lead. For example, the

    four Mutant Mouse Regional Resource Centers (MMRRC), two of which are commercial

    breeders, provide similar mouse resources on a smaller scale and are competitors for grants,

    strains and revenue. New internal management and communication structures must beestablished to coordinate and make even more efficient the complex processes of strain

    acquisition, rederivation, cryopreservation, small colony management and distribution, and

    technical and customer support.

    Goals of the Strategic Plan

    The goal is to enhance the Genetic Resources Program, including the mouse Repository, tobuild and enhance the Laboratorys capabilities as a world-class, international resource to the

    scientific community. Renowned for mouse-based research, information systems on the genetics

    d bi l f h d ffi i di ib i f i h h L b i

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    Situational Analysis

    Strengths

    The Laboratory has a long-term history as THE center for mouse genetics. There is a link to Laboratory scientists and having scientists within Genetic Resources. Genetics Resources scientists are recognized in the external scientific community. The Repository provides a pipeline for new strains to JRS. The Laboratory has more mouse specialty strains than any other distributor. The Mouse Genome Informatics (MGI) database, based at the Laboratory, strengthens

    us as a source of mouse genomic information.

    The mouse is the best experimental mammalian organism. Genetic Resources is able to obtain NIH support for specialty strain resources. There is a supporting relationship between Genetic Resources and JRS personnel.

    An established career ladder for resource scientists adds stability to the program.

    The Genetic Resources group has a strong depth of scientific knowledge of models andti

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    o There is no financial reserve to draw from when community demands exceed theRepository or other funding (e.g., congenic panel).

    o There is insufficient funding for importation and cryopreservation to meetcommunity needs.

    There is still room for improvement in links between JRS and Genetic Resources for aneffective working relationship.

    The Laboratorys ability to support the research community with technical informationis compromised by inadequate database systems.

    The IMR research program needs development and additional funding.Opportunities

    The Laboratorys resource leadership can be maintained and enhanced. Future growth is based on new technologies to genetically engineer mice, and renewed

    interest in large strain panels for QTL analysis.

    The NIH sharing policy requires investigators to distribute mouse strains. The proportion of foundation funding for research and resources is beginning to

    increase.

    There is an initiative to knock out every gene in the genome.

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    Strategic Direction

    1. Enhance the Laboratorys mouse Repository to strengthen it as a world-class, internationalresource to the scientific community:

    Improve cost and management through consolidation; Develop funding plans that support growth;

    Continue to implement operational and cost improvements; and

    Enhance technical knowledge and processes to strengthen models scientific value.2. Maintain a diverse group of Resource scientists:

    Continue to attract and keep high quality Resource scientists; Assure job security for Resource scientists; Provide sufficient scientists to staff courses and give seminars to make the Laboratory a

    leader in mouse genetics, cryopreservation, colony management and genetic

    nomenclature.

    3. Continue to strengthen Informatics:

    Develop consolidated database system for strain information; and

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    5. Provide genetic and scientific guidance and governance to other Laboratory departments:

    JRS: Support growth and quality of mouse strains, reagents, tools, services, and practicalknowledge and standards; Other: External Relations, Office of Sponsored Programs, and Research Staff to provide

    genetic expertise and nomenclature review;

    Provide genetic and science guidance to External Relations, including PublicInformation and Development, Training and Education, and Research Staff; and

    Provide genetic guidance and mouse models to Research Staffto support research,discovery and model development.

    Genetic Resources Pro forma

    actual forecast

    (in millions) FY04 FY05 FY06 FY07 FY08 FY09 FY10

    Revenue

    Mice Shipments 2.9 2.9 3.8 3.9 4.0 4.1 4.2

    Repository Grants 4.1 4.5 4.6 4.2 4.3 4.4 4.5

    Total Revenue 7.0 7.4 8.4 8.1 8.3 8.5 8.7

    Expenses

    TJL Expenses 3.5 3.5 4.7 4.5 4.3 4.2 4.4

    Grant Expenses 4.1 4.5 4.6 4.2 4.3 4.4 4.5

    G M i (0 6) (0 6) (0 9) (0 6) (0 3) (0 1) (0 2)

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    associated with movement into the new high barrier facility. The estimated number of strains in

    the live Repository is expected to increase by ~104 over the next 5 years. If several large external

    projects currently being proposed should happen, Genetic Resources could grow to as much as~3600; however, most of these strains are expected to reside in the Cryopreservation Bank. The

    cost per strain from FY05 to FY10 is expected to decrease because of anticipated cost savings

    from changes in management practices, including managing more strains by cryopreservation.

    Projected net program cost FY06-FY10: $7.3M.

    Capital Plan for Genetic Resources

    To accommodate existing colonies (~9,600 boxes) and planned growth, the Repository requires

    physical capacity for a minimum of 12,000 boxes. The anticipated growth to 12,000 boxes

    includes importation of new strains and strain panels and transfer of additional low-demand

    strains from JRS. The 12,000 box total represents 4,000 more boxes than space allocated in

    Annex 11 and 12, which are projected to hold 8,000 boxes after renovation. The current plan is

    for the additional 4,000 boxes to occupy the shell between Buildings 26 and 32, i.e., in the same

    facility as Annex 11 and 12.

    Table 7. Genetic Resource Major Capital Project Plan

    Timeline

    Project Cost FY05 FY06 FY07 FY08 FY09 FY10 Goal

    1st floor repository shell

    programmatic fitout $ 1,600,000

    Adds additional

    5,640 boxes for

    Repository.

    Provide necessary

    redundancy and

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    JAX MICE AND SERVICES

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    JAXMICE AND SERVICES

    Executive Summary

    The JRS FY05-FY10 plan is built around four strategic goals, chosen to enhance our ability to

    meet the needs of the world-wide biomedical research community in support of our resource

    mission.

    Provide genetically defined mouse models to the biomedical research community. Directly share our knowledge of mouse genetics and disease models with researchers

    working to discover and develop new drugs by providing in vivo testing services.

    Provide the surplus contribution required to support the Labs own research initiatives. Provide large populations of animals for screening for spontaneous mutations of use in

    the research operation of The Laboratory.

    The objectives are closely tied to our resource research and build on the Laboratorys respected

    position in the scientific community.

    In contrast to the past 5 years, we face a much more challenging research-funding environment.

    Annual increases in the NIH budget have leveled off after doubling over 5 years; pharma

    research budgets have also leveled off after several years of rapid growth, and biotech funding is

    only now starting to recover from its most recent bust cycle. Despite these challenges, we haveidentified several growth opportunities for JRS, all of which more fully leverage the resource

    science of the Laboratory.

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    ERP implementation critical to meeting customer information needs in a cost effectivemanner for both JAX Mice and JAX Services.

    Maintaining our position in the academic community Providing scientific seminars and regional resource workshops

    We believe there is unmet need in the current market for our mice and services; however,

    overall growth of the market will be slower than in previous years. The revenue and surplus

    contribution pro forma reflects 4-5 % average growth over the next 5 years versus the 23%

    average annual growth on revenue and 10 % average annual growth on surplus over the last 5years. It also takes into account the timeline for ERP implementation and maintaining current

    investment levels in sales and marketing.

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    Situational Analysis

    Strengths

    The laboratory mouse is the single most studied mammalian model - developmentalbiology of mammals is almost uniquely studied in the mouse, and other organisms are

    unlikely to supplant it. The mouse is also the ideal experimental organism for

    investigating the causes, and therapeutic or prevention strategies for genetically

    determined diseases such as cancer, obesity and diabetes, and resistance/susceptibility to

    infectious organisms. It is used throughout the drug discovery and development process.

    The Laboratory is a recognized leader in mouse-based research and provider ofgenetically defined, genetically modified mice.

    TJLs name is a force in the scientific community based on our longstandingcontributions to both basic research and resource development. We have a historic link

    to the scientific community and a collegial relationship with the scientists (versus a

    customer-supplier relationship). As a result, we are trusted above all.

    Our J strains are the most published mouse strains. Efforts such as the MousePhenome Database, re-sequencing of the most widely used inbred strains and

    characterization of strain panels for pharmaceutical development will only add to the

    current wealth of information on these animals. In practical terms, the more that is

    published the more investigators will choose JAX strains as most new ideas are built on

    previous publications.

    TJL is recognized as the gold standard for genetic purity of mice. We are furtherdefining the industrys best practice for establishing this gold standard through our

    ti t bilit (GSP)

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    Weaknesses:

    Linkages across the Laboratory must be improved to facilitate translation of ourdiscoveries into new resources for the scientific community. There are currently only a

    few investigators willing to devote their time to support resource development/delivery.

    The scientific community views us highly as research colleagues but does not view us asthe resource provider of choice. Our production and order management systems do not

    support reliable and cost effective delivery of animals, especially in the context of

    providing an experiments worth of mice. Nor do they support rapid and efficient

    customer care. We remain the source of specialty mice and/or the supplier of last resort.This is particularly true of procurement staff. Pharma/biotech researchers, with their

    tight development timelines, also share this view.

    Our ties are strongest to the academic community. However, as PhRMA PharmaceuticalResearch and Manufacturers of America, likes to point out, the combined annual

    research budget of the pharmaceutical industry exceeds that of NIH. We must continue

    to build relationships with pharma and biotech. We need to build a betterunderstanding of drug discovery research within the Lab to be a credible service supplier,

    particularly as we begin to interact with the in vivo pharmacologist

    Commercial suppliers are fast followers for our new products and services because wehave actively chosen not to erect barriers to entry but rather share our knowledge and

    processes with the worldwide scientific community.

    Our services market is limited to the US and Canada we do not have global presence. Th L b d ll d k d ff l f h

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    historically reported animal health. We must develop institutional standards for animal

    health and quality, and effectively integrate these standards into our marketing strategies.

    Opportunities

    Take advantage of high priority research areas (e.g. bioterrorism, obesity/diabetes, etc.)by packing our mice, services and knowledge resources around these areas. Our

    repository efforts further support this by providing an ongoing source of new models for

    both current and emerging research priorities.

    Biotech funding continues to be cyclical with current investment focused on near termproduct development. As a result, companies are staying focused on core competencies

    and outsourcing in non-core areas. This presents an excellent opportunity for both

    custom breeding and in vivo services. We must upgrade our business processes and

    systems in order to allow us to deliver an experiments worth of mice and perform the

    experiment to our clients satisfaction.

    The FDA has launched its Critical Path initiative in an effort to modernize themedical product development process. In their view, a serious gap exists between high-

    throughput, innovative approaches to drug discovery and the tools for drug

    development. Again, better disease models were identified as an area of critical need in

    the critical path to drug development.

    We are entering the reality phase in the application of omics technologies to drugdiscovery; having a lot of targets isnt helpful when validation remains such a challenge.

    Use of KO/Tg technologies for target discovery is being viewed cost ineffective, resulting

    in a scaling back of these activities This may impact our custom breeding opportunity

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    procurement efficiencies. CRLs Inveresk acquisition significantly strengthens their

    position in this regard. Selling the value of science in this environment is more

    difficult, particularly when multiple vendors offer similar products.

    If the current collaborative arrangement with Charles River in Europe and Asia ends, wewill face challenges on how to supply and service international customers and build the

    JAX Mice brand identity.

    Our exposure to animal rights terrorists has increased, particularly at our JAX West sitegiven its proximity to UC Davis, a site for animal rights activities. However, it should be

    noted that the UC Davis police are recognized experts at managing animal rights activistsand have supported us with training in the past. The West Sacramento police are also

    aware of the threat and are prepared to handle these types of situations.

    The continued recovery of the California economy threatens the stability of the JAXWest operation. Greater job opportunities in the Sacramento area means that staff can

    more easily move to a new job if compensation and career growth opportunities at TJL

    do not meet their expectations.

    Cell assays and other animal models compete with the mouse for research dollars. It is astated objective of most pharmaceutical companies to reduce their use of animals. Efforts

    such as parallel-tracking toxicity and efficacy with discovery will minimize the number of

    animals used in preclinical testing.

    Patent developments are rapidly changing and impact our ability to acquire and supplyimportant disease and other models. The trend is towards more closely held intellectual

    property on potentially valuable models (with patenting on the fundamentals of biology

    d i ) d l illi h f d i i i i f l

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    Figure 6. TJL Position in The Biomedical Research Pipeline

    JAX Mice

    JAX Mice includes inbred, spontaneous mutants, hybrids, and genetically modified strains. Our

    collection of over 2800 lines is by far the largest in the world. The Laboratory is known

    throughout the worldwide research community as THE source of specialty strains.

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    three commercial providers offer rats and other models. Charles River is the dominant provider

    in the research animal market.

    Charles River offers 43 mouse strains, and while they continue to add new models, the focus is

    on strains with clear market potential.

    Taconic currently offers 120 strains. They intend to expand this collection, as well as their

    position in the research community, through participation in the Mutant Mouse Regional

    Resource Center (MMRRC) program. They recently announced plans for a new rodent

    production facility in Indiana.

    Harlan is known more for its rat models and lab animal diet products than for mice. However,

    Harlan has acquired J substrains through acquisitions and takes an aggressive discounting

    strategy to gain market share for those strains.

    JAX Services

    Our services include:

    Dedicated Supply offering custom mouse production of limited-availability strains On Demand Colony Management including IVF-based cryopreservation and colony

    expansion to maximize space utilization

    Model Development including special crosses, speed congenics and diet inducedobesity (DIO)

    Genome Scanning

    In Vivo Services including compound administration and high-throughputphenotyping

    TJL offers a subset of all services offered by the commercial providers Our services strategy is to

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    Summary of Services

    Table 8. Summary of Services

    TJL CRL Taconic Harlan

    Animals Mice Mice, rats, other Mice, rats, other Mice, rats, other

    Services

    Husbandry

    Cryopreservation

    Transgenic Development

    Compound

    Administration

    ?

    GLP ?

    Surgery

    Pathology/Clin Chem

    Reproduction

    Physiology

    ECG

    Lung function

    Metabolic Body Comp

    Neuromuscular

    Pain

    Behavior

    Other

    Feed, equipment

    Biopharma safety

    Contract staffing Antibody production

    Cell culture

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    Figure 8. JAX Services Market Position Diagram

    Taconics service offering shows the most overlap with ours, and as with mice, they are moving

    toward JAX on the science prestige axis. They have established a collaboration with Albany

    Medical College to support their Research Animal Services, which includes compound and diet

    administration, physiological characterization, molecular analysis and antibody production.

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    Strategic Direction

    Sales and Marketing

    In keeping with the approach to a more unified Laboratory, Jax Animals and Services will work

    hard to take advantage of the synergies that greater interaction with the Labs research staff and

    educational teams can provide. Mouse models developed by the staff need to be shared with the

    broader research community sooner and more effectively. Services developed either by or to

    serve the Labs scientists must be shared with outside researchers as soon as efficacy is proven

    and capacity is established. This approach will not only serve our mission by better enabling the

    research of others but should also contribute surplus to help fund the Labs own growingresearch efforts. Specific approaches currently planned include:

    Utilize the Laboratorys staff in a pyramid outreach approach to bring the science of theLaboratory to the user community. Approaches include: providing scientific seminars

    and resource presentations at key accounts; providing regional workshops to sustain

    academic loyalty and communicate key scientific messages; and a revamp of the Affiliates

    program to better leverage the power of the Lab to build relationships.

    Conduct an in-depth go-to-market study to evaluate the potential returns to an expandedeffort to tell the story of our mouse models and particularly of the services that the Lab

    can provide. We will evaluate potential opportunities to leapfrog the current market

    to offer research solutions to critical hypotheses rather than simply providing mice or

    isolated services. Every opportunity to enhance research and add value through contract

    breeding, custom colony management, dosing, in vivo phenotyping, and necropsy

    analyses will be made available to the research community. We will evaluateopportunities to expand our field staff to build more effective and enduring

    relationships that convert to both incremental and recurring sales. As a result of this

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    Expand/grow international collaboration(s): enhance availability and buildroyalty/revenue streams.

    ERP Implementation

    Timely and successful implementation of ERP along with the replacement of the currentproduction hardware and software is critical to achieving all JRS goals. The expected

    gains include:

    o Improved inventory management providing accurate real time inventory andallowing hard allocation of specific mice to specific customer orders (i.e. Roche)

    in support of delivering an experiments worth of mice.

    o Margin improvements through better forecasting, capacity planning, labortracking/management and colony management.

    o Improved customer satisfaction and reduced customer service cost bystreamlining project quoting, project management and data reporting.

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    3. Provide the surplus contribution required to support the Labs own research initiatives.

    Succeed in strategic objectives 1 and 2 above to exceed revenue projections outlined inpro forma below.

    Drive process improvement to drive cost down while improving health quality. Continue evaluation of technology advances that drive operation cost down while

    improving technician safety, animal health and welfare.

    4. Successfully implement JAX West operation

    Continually assess the optimal use of capacity at JAX West to meet overarching goals. Improve margins on JAX West Services projects and JAX Mice strains. Continue to build JAX West Services competencies and add Jax Mice strains in responseto user community need.

    JRS 5-Year Pro Forma

    Revenue growth for FY05-10 is projected to be a relatively modest 27% compared to the

    previous five years growth of 115%. Key factors influencing these projections include:

    Projected slowing of research investment including leveling off of NIH funding andd d h i l R&D di

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    The 5 year forecast for In vivo services is based on the current operation in JAX West.We intend to revise the business plan for this service in the next few months to include a

    possible expansion in JAX West as well as launch of similar services in Bar Harbor. Any

    associated changes in revenue/expense will be reflected in the next revision of the 5 year

    numbers.

    Net contribution is expected to grow by 32% over the 5 years based on minimal additional gross

    margin improvements and sales cost maintaining a constant percent of sales. Net cumulative

    contribution FY06-FY10 totals $91.4M.

    actual forecast(in millions) FY04 FY05 FY06 FY07 FY08 FY09 FY10

    Revenue

    Mice Shipments 47.4 50.5 53.1 56.4 59.2 61.6 64.0

    Services 9.1 8.4 8.2 8.6 9.7 10.9 11.8

    Other 2.9 2.6 2.8 2.8 2.8 2.5 2.5

    Total Revenue 59.4 61.5 64.1 67.8 71.7 75.0 78.3

    Expenses

    COGS- Direct 22.8 24.3 25.3 26.4 28.0 28.9 29.8

    Selling Expense 4.8 3.9 4.8 5.2 5.6 5.9 6.2

    Facil/Util/Deprec 6.9 7.6 8.5 9.2 9.4 9.6 10.1

    Interest 0.9 0.9 0.9 0.9 1.0 1.0 0.9

    Operating Surplus 24.0 24.8 24.6 26.1 27.7 29.6 31.3

    Percent of Revenue 4 0 % 40% 38% 39% 39% 39% 40%General & Admin Exp 6.5 6.8 6.8 6.8 7.1 7.3 7.4

    Facil/Util/Deprec alloc toG&A 1.8 2.0 2.3 2.4 2.5 2.6 2.7

    Net Surplus (Deficit) 15.7 16.0 15.5 16.9 18.1 19.7 21.2

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    Capacity Plan

    Capital renovation and expansion planned will position the Lab to:

    Provide quality space for repository. Perform quality upgrades on the production space. Expand swing space which will allow renovations and replacement plans to continue.

    The trailers will be 15 years old and will need to be replaced.

    Gain expansion space for future growth. The Building 51 twin slated to replace thetrailers is planned in FY10 and will be evaluated as we progress.

    Though the immediate opportunities at Jax West have not filled to capacity as fast as hoped, thesite has shortened delivery time and reduced transportation costs to west coast customers,

    improved awareness and has incubated the extremely promising In vivo service.

    The capital renovation and expansion plan positions us to meet the expected needs of the next 5

    years with an additional ~5,800 boxes in Bar Harbor as shown in figure 9 and ~3,000 boxes in

    JAX West by the end of FY10 as shown in figure 10. While Building 51 twin (~12,000 boxes)

    and third barrier in JAX West (~1,220 boxes) are capital projects in the plan, they will be

    evaluated as we progress based on need.

    Figure 9. Bar Harbor

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    SCIENTIFIC SERVICES

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    SCIENTIFIC SERVICES

    Executive Summary

    An ongoing strategy of the institution calls for full development and exploitation of technologies

    and services as a comprehensive support system for research. Since the establishment of

    Histology in the 1950s, The Jackson Laboratory has employed this model to operate centrally

    managed and interactive services offering many advantages to investigators. Common

    intellectual and technical resources serve to connect common research interests, and

    consolidated facilities leverage economies of scale beyond the reach of most individual

    investigators. Committed institutional support has enabled the Laboratorys interactive

    Scientific Services to achieve this strategy, thus providing investigators access to state-of-the-art

    technologies, facilities and dedicated technical expertise supporting basic research. Services now

    include Biological Imaging (Histology, Electron and Light Microscopy), Cell Biology and

    Microinjection, Computational Biology Resources, Fine Mapping, Flow Cytometry, Glassware,

    Microchemistry (Allele Typing/SNPs and Sequencing, Gene Expression, Molecular and

    Protein), Multimedia (Biological Photography, Conferences, Graphics and Print Shop),

    Physiology & In Vivo Imaging, Scientific Equipment Repair and Shared Facilities. SeveralServices receive operating support from a Cancer Center Support Grant (National Cancer

    Institute), National Heart, Lung and Blood Institute, and National Center for Research

    Resources in addition to the Laboratorys direct support and fee-for-service recovery.

    The centralized Scientific Services management structure includes a Director, Senior Services

    Manager and Administrative Assistant, in addition to Scientific Staff Advisors for each Service.

    Through this structure, the Laboratory aims to assure the necessary advocacy, budget

    management, technical staffing and development, planned technology acquisition and

    implementation, and user communications necessary to meet dynamic faculty needs. Scientific

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    frequency of communication between the parts of the organization is growing and remains

    productive, formalized operational integration needed assessment. An intensive evaluation of

    operational complementation, synergies and overlap was conducted. The Laboratory evaluated

    the benefit of a more coordinated management of these institutional resources. A key

    requirement for the success of a coordinated service delivery approach is that internal service

    delivery be maintained as the priority customer while the external customer realizes on-time

    delivery of quality cost-effective products that meet the expectations of one contracting with an

    outsource service provider. Internal customers should see only enhanced access to existing and

    new services at equivalent if not lower cost and of equal or better quality. External customers

    should gain access to things that the Laboratory is uniquely positioned to deliver: services that

    enhance their use of JAX mice and therefore make the act of external service deliveryconsistent with the Laboratorys resource delivery mission. Through institutional reorganization

    in the fall of 2004, the Laboratorys Reproductive Technology Resource (Importation,

    Cryopreservation and Expansion, Assisted Reproductive Technologies), JRS Allele Typing, JRS

    Genotyping, Necropsy Services and Library Services will merge with existing Scientific Services.

    This effectively doubles the Laboratorys Service organization. The addition of these functional

    areas expands the Service funding sources to include HHMI and the Ellison Foundation.

    Services must be positioned to effectively expand existing services, develop new services, and re-

    develop old services as well as outsource services where cost-effective and terminate outmoded

    functions in order to meet the needs of the internal scientific community. The accompanying 5-

    year plan details overarching goals, key strategies and implementation actions necessary to

    achieve this delivery growth while conserving resources where possible.

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    o Tom Gridley Cell Biology/Microinjectiono Derry Roopenian Flow Cytometryo Gary Churchill CBR-Statso Carol Bult CBR-Apps and Analysiso Greg Cox Physiology and In Vivo Imagingo Dick Smith Bioimagingo Jrgen Naggert Microchemistryo Ed Leiter Glasswareo Sasha Chervonsky Equipment Repair and Shared Instrumentationo Martin Ringwald Multimedia

    The Laboratorys Information Technology infrastructure adequately supports generalcommunications and supports some data/storage.

    The Director of Technology Development has a strong working relationship withScientific Services.

    With FGB completion, Scientific Services will occupy ~12,300 sq. ft. of high-quality laband animal space. The Laboratory supports continuing education, which is critical in offering Scientific

    Services staff job-retraining opportunities.

    Weaknesses

    Scientific Services draws considerable funding from federal sources (30% of base servicei i i d b f d l d ll ) L f h L b CCSG f di i

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    Maintaining technical competence requires significant resources and personal effortgiven our location.

    Major scientific capital acquisition and replacement is grant-dependent. Diverse technical training and work experiences of Services staff members can serve to

    isolate individuals and create the perception of little technical or functional

    commonality with others.

    The scientific user base is demanding and often fails to acknowledge technical expertiseof Services Staff, viewing them as a labor resource, not an intellectual resource.

    Scientific Services has little formal interaction with IMB researchers but needs to inorder to more fully understand and plan to address its service needs.

    Many Scientific Services areas occupy adequate space for current operations but arespace-limited in terms of physical expansion. Available unoccupied space is limited and

    will gait services physical expansion. Simply scaling Scientific Services staffing and spaceneeds proportionally with anticipated increases in faculty programs, Scientific Services

    should add 30 FTE, requiring an additional 6,100 square feet of space based on current

    Scientific Services FTE/SqFt ratios.

    Anticipated Services growth will overwhelm existing Scientific Services communicationsand management structure. Intra-service and cross-campus services communication is

    limited; there is little formal connection between JRS and Scientific Services.

    Scientific Services management staff members are active daily contributors to the

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    to accommodate this new organization is essential. The inability to do so represents a

    significant operational threat.

    Loss of employee commitment as a result of accelerated change and growth can threatenScientific Services.

    Scientific Services are the single highest volume data generator on campus. TheLaboratorys IT infrastructure marginally supports archival storage and high-speed data

    transfer and backup. Services IT infrastructure needs to exist to support the efforts

    including but not limited to those listed below many of which overlap with JRS-

    Services operational needs:o internal/external customer self-service on-line estimates and quoting accessible to

    services as well;

    o order entry interface and tracking system;o scheduling;o internal/external customer & internal view of project progress;o internal process data for QC, productivity and efficiency metrics;o

    possible data delivery/pick-up capability (service dependent);o data management and query capability;o archival storage; ando billing system

    Opportunities

    The external scientific community has come to accept the mouse as the preeminenthuman disease model. As a broader spectrum of researchers turns to this model, the

    need for expertise in use of the model grows Such needs may include colony

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    wealth of existing experience will serve as a first step toward effective and efficient use of

    resources across existing and developing services campus-wide. Support for employee

    continuing education and job retraining will be essential in labor resource conservation.

    Public-private sector relationships represent an alternative opportunity for theLaboratory, especially in terms of bringing in new technologies.

    Alternative funding opportunities (federal, philanthropic and other) must be identifiedand pursued to maintain the internal Service subsidy rates.

    NIH and NSF recognize the necessity of enabling interdisciplinary and multidisciplinaryresearch. Scientific Services can/should play a role in enabling such efforts at the

    Laboratory.

    Threats

    On the heels of the NIH doubling, the current federal funding climate is flat for NIH.Although NSF will likely fare better, it has a smaller budget at the outset. Unless thegeneral economy takes an upward turn, philanthropic funding is likely to remain

    sluggish. While subsidized Service rates will be increasingly valuable to users, they will be

    increasingly harder to deliver.

    NCI is focusing on Cancer Centers ration of CCSG funding. The Laboratory does notfare well in this calculation. Renewal of our CCSG is not assured.

    The Laboratorys faculty members are disproportionately mid-career and are ripe for

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    Strategic Direction

    1. Assure the Laboratory faculty access to essential services enabling the conduct of quality

    research and maintenance of competitive granting status.

    Facilitate TJL access to emerging technologies including: proteomics and massspectroscopy, clinical imaging modalities including MRI, RNAi methodologies,

    electrophysiology, advanced computational modeling and other technologies critical to

    faculty progress.

    Use external benchmarking and faculty contacts to assure needs are met. Focus effort on the evaluation, funding, importation and implementation or identify

    functional outsourcing options for access to emerging technologies.

    2. Operate the Laboratorys Service infrastructure in a cost effective manner and fully realize

    the potential of the collective labor and technical resources committed currently to servicedelivery.

    Define opportunities for cross campus Service integration. Given funding limits and projected growth in the Laboratory research, expand Service

    delivery capacity to meet research needs but with the minimum necessary net increase in

    FTE and footprint.

    Resource conservation must be an underlying strategy employed in Services expansion.

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    4. Sustain and enhance necessary Services operations and subsidy rates.

    In an atmosphere of flat Federal funding, it is necessary to exploit all appropriatefunding opportunities providing operating and capital support for Services.

    5. Enhance standard light microscopy, 4-Pi & multi-photon confocal microscopy,

    histopathology & necropsy, physiology & clinical imaging offerings.

    Complete occupancy of the FGB and maximize use of newly constructed ScientificServices facilities to broaden service & support offerings.

    Deliver Necropsy Services within the Biological Imaging Service umbrella. Support IMB 4-Pi operations. Centrally manage biological imaging and necropsy services in support of the Laboratorys

    sick mouse/surveillance and research pathology efforts.

    Deliver the full scope of physiology & imaging Services from FGB-4.6.