Grifols Agrees to Buy Talecris Gaining a Third of US Market Share (TLCR, BAX, CHTP, CTIC, TTHI, GTXI, ABII, MATK)

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Grifols has agreed to buy Talecris Biotherapeutics (TLCR) for $3.4. billion, helping the company capture more than a third of the US market, according to Bloomberg. Under the terms of the deal, Grifols will pay $26.16 in cash and stock for each share of Talecris stock, representing a 64% premium over Talecris closing price on Friday. Andrew Goodsall, a health-care analyst with UBS AG in Sydney told Bloomberg the deal gives Grifols the same share of the domestic blood-based infusion market as Baxter International (BAX) and more than CSL Ltd., which owns a 29% share. Grifols does not expect any problems with the FTC, according to the report, and the deal is expected to be complete by the end of the year.

As a whole, the Biotechnology Stocks Index has gained more than 1%. The acquisition announcement has sent Taleris soaring over 25%. Other top performers in the Index include Chelsea Therapeutics International (CHTP), Cell Therapeutics (CTIC), and Transition Therapeutics (TTHI).

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Talecris, created when Bayer spun off its plasma business in 2005, went public on October 1, 2009. It is easily the top performer in the 2009 IPOs Index on the day, and as a whole, the Index has outperformed the S&P 500 by 2% over the last month.

Over the last week, a number of other biotech names have also tacked on substantial rallies. GTx (GTXI), Abraxis BioScience (ABII), and Martek Biosciences (MATK) have all gained more than 20% for the period. Martek’s pop came after topping EPS estimates after the bell on Thursday and Abraxis erased its morning gains despite reporting positive results from its Phase 3 Abraxane trial.

Investors can track the Biotechnology Stocks Index and the 2009 IPOs Index for performance trends and a suite of other metrics at tickerspy.com.

Tags: ABII, BAX, CHTP, CTIC, GTXI, MATK, TLCR, TTHI