NEWARK, N.J., Nov. 10, 2016 /PRNewswire/ -- IDT Corporation
(NYSE: IDT) today announced a strategic investment in Cornerstone
Pharmaceuticals, Inc., a privately-held biotechnology company. IDT
and a group of "A list" co-investors invested $10 million for a minority interest in the
company, adding to a prior investment by IDT's Chairman,
Howard Jonas. Under the investment
agreements, IDT has board representation, and IDT and its
co-investors have the right to acquire a majority interest in
Cornerstone.
"Cornerstone Pharmaceuticals, with its impressive pipeline of
oncology drugs, exemplifies the promise of the biotech sector, and
we are proud to support the company's ground-breaking work," said
Howard Jonas, IDT Chairman. "We view
Cornerstone as a wise investment, as its success to date has been
nothing short of remarkable. The company's lead compound, CPI-613,
has generated encouraging preliminary results in early-stage trials
in patients with advanced pancreatic cancer, acute myeloid leukemia
(AML), and T-cell lymphoma. Those results have helped to attract an
unmatched group of personnel, scientific advisors, investors and
board members, strengthening Cornerstone's position as the company
charts its path forward."
Biotechnology is an extremely well-positioned industry sector
for growth and return. Annual global growth in the oncology
drug market is expected to be 7.5 – 10.5 percent through 2020,
reaching $150 billion. (IMS
Health Data on file) IDT has long viewed the biotechnology sector
as an attractive target for strategic investment, particularly in
the area of oncology drug development, where numerous research
initiatives are investigating agents with the potential to
transform anticancer treatment. IDT's co-investors include:
- The Abramson Family Foundation: The foundation supports
the Abramson Family Cancer Research Institute and Abramson Cancer
Center, a world leader in cancer research, patient care, and
education. The Center's preeminent position is reflected in its
exceptional merit rating by the National Cancer Institute (NCI) and
continuous designation as a Comprehensive Cancer Center by the NCI
since 1973, one of 41 such Centers in the
United States.
- Chetrit Brothers: The Chetrit brothers are highly
disciplined and successful investors, focused primarily on real
estate. Their holdings have at various times included buildings
such as the Willis Tower and Sony building.
- Michael Steinhardt:
Legendary hedge fund manager, financier, investor, newspaper
publisher, and philanthropist; founded Steinhardt, Fine, Berkowitz
& Co. in 1967.
- Mortimer Zuckerman: Co-founder, executive chairman and
former CEO of Boston Properties, one of the largest real estate
investment trusts in the United
States. Mr. Zuckerman is also the owner and publisher of the
New York Daily News and the U.S. News & World
Report, where he serves as editor-in-chief. He formerly owned
The Atlantic and Fast Company. He also established
the Zuckerman Mind Brain Behavior Institute at Columbia University which is creating the most
comprehensive brain science institute in the world.
"The science driving Cornerstone Pharmaceuticals has always been
robustly innovative. Now, it is building the leadership and
personnel necessary to deliver new cancer therapies to patients,"
said Chi Van Dang, MD, PhD, Director
of the Abramson Cancer Center of the University of Pennsylvania, who has agreed to chair
Cornerstone's Scientific Advisory Board. "Supported by committed
investors, the passion and dedication of Cornerstone's scientists
and senior management will surely enhance our understanding of
cancer cell metabolism as a therapeutic target for a host of
innovative drug compounds, especially CPI-613."
About CPI-613
Cornerstone's first-in-class clinical lead compound, CPI-613,
targets enzymes that are involved in cancer cell energy metabolism
and are located in the mitochondria of cancer cells. CPI-613 is
being evaluated in multiple Phase I, I/II, and II clinical studies
as a single agent, as well as in combination with standard drug
therapies, in patients diagnosed with advanced solid tumors or
blood cancers. Developed as part of Cornerstone's proprietary
Altered Energy Metabolism Directed (AEMD) drug platform, CPI-613
was discovered at Stony Brook University and patented by
Cornerstone. CPI-613 is designed to target the mitochondrial
tricarboxylic acid (TCA) cycle, an indispensable process essential
to tumor cell multiplication and survival, selectively in cancer
cells.
CPI-613's attack on the TCA cycle also substantially increases
the sensitivity of cancer cells to a diverse range of
chemotherapeutic agents. This synergy allows for combinations of
CPI-613 with lower doses of these generally toxic drugs to be
highly effective with lower patient side effects. Combinations with
CPI-613 represent a diverse range of potential opportunities to
substantially improve patient benefit in many different
cancers.
The U.S. Food and Drug Administration (FDA) has designated
CPI-613 an Orphan Drug for the treatment of acute myeloid leukemia
(AML), pancreatic cancer and myelodysplastic syndromes (MDS). As a
next step, Cornerstone intends to apply for Orphan Drug designation
for MYC amplified lymphoma/Burkitt lymphoma and T-cell lymphoma.
With Orphan designation, CPI-613 will be granted market exclusivity
for 7 years (higher than non-Orphan drugs), 50% tax credits on all
clinical trials and exemption from the $2.2
million PDUFA fee.
About Cornerstone Pharmaceuticals, Inc.
Cornerstone Pharmaceuticals, Inc. is a clinical-stage,
oncology-focused, pharmaceutical company committed to the
development and commercialization of therapies that exploit the
metabolic differences between normal cells and cancer cells. The
company's primary objective is to develop highly selective and
effective agents with minimal toxic effects on normal cells and
tissues. The company's unique approach to targeting cancer
metabolism has led to two distinct technology platforms: altered
energy metabolism directed, or AEMD compounds, and an Emulsiphan
lipid nanoemulsion-based drug delivery system.
www.cornerstonepharma.com.
About IDT Corporation
IDT Corporation is a Fortune 1000 technology company, currently
traded on the New York Stock Exchange. After beginning in the
telecom industry, IDT has become an important innovator in Payment
Services, VOiP Solutions, and Mobile Applications. IDT has spun off
and sold many successful companies including Genie Energy, Straight
Path Communications, IDW Publishing, Zedge, and IDT Entertainment.
IDT has recently moved its headquarters to a state of the art
facility in Newark that
complements its commitment to remaining an important technological
disruptor for years to come.
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SOURCE IDT Corporation