In what might be the greatest coincidence in Wall Street history, IDM Pharma (IDMI) stock skyrocketed by 234% on Tuesday as the company announced positive late stage results of its Osteosarcoma drug L-MTP-PE.
What is the coincidence you ask? On Monday the Nasdaq released a letter to the company warning that its stock has not met the $1 minimum required bid price over the last 30 days in order to keep its listing on the exchange.
What is even more interesting is that the company did not choose to issue a press release announcing the Nasdaq letter until 7:35pm on Tuesday, after the markets were long closed.
Just read the headline of the press release, and the smaller headline:
IDM Pharma Receives Notification from NASDAQ Relating to Minimum Bid Price
Tuesday February 5, 7:35 pm ET
On February 5, 2008, the closing price of the Company's common stock was $3.81 per share.
It almost seems the company is saying that "the Nasdaq must be crazy, our stock price is not even close to $1. Look, it closed at $3.81 on Tuesday!"
Now don't get me wrong, I'm glad for the positive numbers from the study, as the company's press release points out;
Children's Oncology Group Report Shows the Addition of L-MTP-PE to Chemotherapy Reduced the Risk of Death by 30% in Osteosarcoma Patients.
I'm just amazed at the timing; was the company anticipating the Nasdaq warning letter, and waited until it was issued and released the positive news just in time? How would the stock price have reacted to the release of the news of the study results prior to the Nasdaq letter? Would the stock have jumped as high?