The IPO exit strategy is back--sort of. Talecris Biotherapeutics (TLCR) successfully raised $950 million in its IPO yesterday, and two of its biggest investors--Cerberus Capital Management and Ampersand Ventures--cashed in 15.8 million shares for $300 million. It is the second-largest IPO this year in a market that has largely been closed for more than 18 months.
Unlike most biotech companies, though, Talecris actually makes money. It sells protein therapies for ailments like hemophilia. And it posted net income of $65.8 million on $1.37 billion in sales last year. Analysts noted that Talecris isn't the only biotech company to look to an IPO to raise cash and enrich backers. But it also isn't the best guide on what kind of reception hopeful developers can expect in the public market.
"Talecris isn't a great bellwether for biotechs because it is a much more mature business, with sales and profits well beyond typical venture-capital IPOs," E&Y's Glen Giovannetti tells Bloomberg. "While biotechs are lining up to test the market, it won't be a wide-open window for raising money."