Wells Fargo Initiates Coverage on Talecris Biotherapeutics (TLCR) with an Outpeform

November 10, 2009 7:11 AM EST

Wells Fargo initiates coverage on Talecris Biotherapeutics (Nasdaq: TLCR) with an Outpeform rating.
Wells analyst says, "Talecris is a global leader in plasma-derived biopharmaceuticals, with its flagship products commanding the No. 1 and No. 2 share position globally, in a market with an underlying growth rate of approximately 8% and a high barrier to entry. We believe Talecris will exceed this growth rate as they have the strongest position in the fastest growing segments. We value Talecris based on our 2011 revenue estimate of $1.78 billion, capitalized at 3-3.5x, and discounted at 20% to arrive at a valuation range of $29-34, assuming 125 million shares outstanding."

Alzheimer's Data Represents a Near-term Call Option In Neurology...We believe there is a class effect in IGIV utilization patterns, with all ships rising in a rising tide. An interim analysis of IGIV treatment for Alzheimer's was reported at ICAD 2008, demonstrating that nine months of therapy provides robust statistically significant improvements in cognitive function. The principal investigator has noted that IGIV therapy has resulted in some of the most dramatic improvements seen in his career. Full 18-month results should emerge in Q1 2010. A Phase III trial sponsored by Baxter and the National Institutes of Health is ongoing, with results expected in 2012E. We believe positive results would tap out IGIV supply."

To see more analyst ratings on TLCR Click Here.

Talecris Biotherapeutics Holdings Corp., a biotherapeutic and biopharmaceutical company, engages in the production and marketing of plasma-derived protein therapies worldwide.

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