On September 20, 2009
What Fool Will Buy the Talecris IPO? Oh Wait, That’ll Be Me.
It’s hard to imagine why anyone would want to buy a piece of Talecris Biotherapeutics’ proposed $850 million initial public offering. VentureBeat said it best when Talecris tried to go public two years ago: So what we have is a profitable but relatively slow-growing biotech with huge debts, run by executives who are themselves bleeding substantial amounts of cash out of the business, which is likely to remain heavily indebted after its owners siphon off most of the proceeds from an offering roughly four times the size of any other biotech IPO in almost a decade. Let’s take each of these claims in turn, shall we? Talecris is profitable…but not that much: Unlike most biotechs, Talecris actually has revenues. The…
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