Two big private equity firms appear to be behind the decision to push a $1 billion IPO for Talecris Biotherapeutics. Talecris uses plasma to make new therapies for chronic illness. Cerberus Capital Management and Ampersand Ventures, which arranged the buyout of Talecris from Bayer, seem to be betting on cashing out of the debt-heavy company before the stock market weakens too much.
It remains to be seen if investors are still willing to buy into a company that has been pushed hard by equity groups. Talecris has more than doubled its payroll in the past two years, significantly raising expenses. If the IPO is successful, it would also mark a major coup for the industry, which has seen a string of biotech IPOs pulled recently.
- read the report [1] from the News & Observer
ALSO: Case in point: Quark Pharmaceuticals [2]Â couldn't make the IPO leap. Report [3]
Related Articles:
A closer look at the biotech IPO. Report [4]
Will private equity get a crush on biotechnology? Report [5]
Biotech IPOs losing their attraction. Report [6]
Links:
[1] http://www.newsobserver.com/business/story/652440.html
[2] http://www.fiercebiotech.com/story/novacardia-quark-biotech-file-for-86m-ipos/2007-03-30
[3] http://www.chron.com/disp/story.mpl/ap/fn/5006885.html
[4] http://www.fiercebiotech.com/node/7749
[5] http://www.fiercebiotech.com/story/will-private-equity-get-a-crush-on-biotechnology/2007-06-05
[6] http://www.fiercebiotech.com/story/biotech-ipos-losing-their-attraction/2006-05-15