IDM Pharma, Inc. (IDMI)

[idmi_investor]

IDM had talks with FIFTY STRATEGIC PARTNERS

Just read the SEC SC 14D9 filed yesterday. Pages 16-24 are the most interesting. They had talks with 50 strategic partners of which 17 entered into a confidentiality agreement and due diligence. It seems like they got 3 serious offers, one of which could have been over $100 million, but this offer was reduced, leaving Takeda as the highest offer. I guess you can look at it two ways. There was a lot of interest and IDM did a very thorough review and hence, the $2.64 is the best price they could get in this brutal market. The other way you could look at it is that one of those 17 strategic partners that entered into a confidentiality agreement could at any moment provide an unsolicited offer for more since management has talked with so many companies. If there is a higher offer, it will likely come this Monday or next Monday as I assume it will be too late by then. Palo Alto also fully reserved their right to back out if a superior offer surfaces.

One final question I wonder is if Palo Alto retains the right to solicit an offer. I know the agreement says that IDM Pharma can't solicit an offer, but am not sure if this applies to PA investors. Perhaps PA investors are craftier than we think and they are actively trying to find another offer behind the scenes?