Replies to post #50372 on Biotech Values

[DewDiligence]

Re: Talecris backers design a $1 billion IPO

>This has got to be the world's worst investment.<

The Talecris sellers are not stupid. Plasma-derived drugs are 20th-century technology; whenever there is a cheap recombinant product available, it takes over the market.

[DewDiligence]

The quote from Bruce Carter of ZGEN in #msg-17114738 is apropos here.

[DewDiligence]

Australia's CSL Acquires Talecris for $3.1B in Cash

[Talecris, based in North Carolina, was created by VC’s in 2005 to buy Bayer’s plasma-protein business (#msg-5925270); it has been owned ever since by VC’s, who were unsuccessful attempting to IPO in 2007.

Talecris makes Thrombate, a plasma-derived antithrombin that is the only approved AT product in the US. Thrombate has very poor product availability (#msg-20966468, #msg-29898480) and hence it is not really serious competition for GTCB’s ATryn.

Talecris’s insiders must be very happy to finally be cashing out (#msg-21670002, #msg-23356204). CSL is the largest plasma-protein company in the world. The deal value of $3.1B includes $1.2 of debt assumption.]

http://www.reuters.com/article/marketsNews/idINSYD10967920080812

›Tue Aug 12, 2008 7:50pm EDT

SYDNEY, Aug 13 (Reuters) - Australia's CSL Ltd (CSL.AX), the world's top maker of plasma products, agreed to buy U.S.-based Talecris Biotherapeutics Holdings Corp for $3.1 billion, to further boost its presence in the plasma market.

CSL said in a statement on Wednesday the proposed deal was subject to regulatory approvals including from anti-trust authorities.

"Talecris is highly complementary to CSL's existing business. The acquisition will make CSL a stronger competitor in the highly competitive plasma therapeutics market place," CSL Managing Director Brian McNamee said in a statement.

He said the proposed deal would provide CSL with more products and expand its geographical presence and capacity in the $15 billion global plasma products market.

CSL plans to raise $1.5 billion through an institutional share placement to part-fund the deal. The transaction will boost CSL's 2008/090 earnings per share by 10 percent, including synergies.

"CSL estimates that profit improvement initiatives will generate synergy benefits of approximately $225 million per annum, which CSL expects to realise progressively over three years following completion (weighted towards years 2 and 3)," CSL said.

Talecris, which operates 56 plasma collection centres and two manufacturing facilities in the United States, is being sold by its private equity owners Cerberus Partners and Ampersand Ventures.

The private equity funds had proposed an IPO and had been waiting for market conditions to improve before going ahead with it.

CSL also reported a 30 percent rise in its fiscal 2008 profit to A$702 million ($610 million). ($1=A$1.15)‹