Institutions Buying IDMI.
June 21, 2007: IDM Pharma to Raise $25 Milliion in Registered Direct Offering.
7.1 million shares at $3.50. 2.4M additional shares at $4.06.
February 21, 2007: IMD Pharma Raises $12.8 Million in Private Placement. Approximately 4.5 million shares @ $2.82 share. In addition, 782,500 additional shares @ $3.243 share. Participants included both new investors, led by Palo Alto Investors, as well as existing investor, Alta Partners.
OK. 7.1M and 4.5M= 11.6 million shares of IDM. Short term pain for exsisting shareholders, like myself (I bought @ +10.5% to Palo Altos buy price for IDM.)
But I wanted to find out who are Palo Alto Investors, IDM's current largest share holder: 3.15 million shares, all new shares bought in February, 2007. IDM is Palo Alto's 33rd largest holding at $13 million as of June 21, 2007.
Palo Alto Investors is an SEC-registered investment advisor providing money management services to instituional clients and high net worth individuals. Over $1.3 billion under management. Investment focus predonimantly Micro-Cap and Small-Cap U.S. equities. Sectors: Technology, Healthcare, Energy, Consumer & Financial Services. Current sector weighting: Healthcare 42.8%, Energy 25.2%, Technology 11.7%, Services 7.1%.
Research Process: Identify Good Candidates; Desk Study; Site Visit; Due Dilligence; Buying Opportunities; Monitor Continuously. Typically 5 - 10% of the companys they research remain after due diligence. So 90 to 95% of the companys they research, they do not invest in.
"We seek to invest in fundamentally sound and capably led businesses, and we invest for the long-term. We have found that companies in the micro-cap, small-cap and certain arcane industry segments offer extraordinary risk/reward characteristics. They are often misperceived and can be badly mispriced. Our goal is to identify opportunities and take advantage of them for our clients." Time frame 1 to 3 years.
Palo Alto has two MD's and one PhD as research professionsals in-house.
We know Palo Alto did their DD before becoming IDM's largest share holder.
Hopefully, Palo Alto's vision and confidence IDM is correct and in the coming years stockholders of IDM will be greatly rewarded as well as the clients who IDM serves to assist them in their fight against cancer.
