Cegedim: the market has the heavy hand

Pendulums. The reflux of title Cegedim puts the record on the file and allows better conditions for entry if we want to reinforce ... The company provides various services for pharmaceutical companies with outsourcing of medical visits, market studies, the analysis of the prescription, tools for measuring the effectiveness of marketing ... The firm also develops software for the medical sector. A whole range of services which was completed in May 2007 with the acquisition of American Dendrite, a leading global provider of customer relationship applied dedicated to the pharmaceutical industry.

Activity. Dendrite employs nearly 3,000 employees and offers solutions for improving the effectiveness of the sales force, to accompany clients on regulatory issues or approaching distribution networks in a more targeted ... Both companies appear complementary with great potential for synergies to be exploited. The exercise of Cegedim 2007 was characterized by strong growth in billings with the effect of the integration of the American entity. The International now provides more than half of the bills, while the operating margin is expected to remain around 13%. The quality of the balance sheet has been at the same time worsened with the 750 million dollars required for the redemption of Dendrite.

Approach. Since the peaks of last summer, the title Cegedim concedes 40%. It comes on points lower since the beginning of 2004 ... Four years earlier. The mistrust of this value appears excessive, even if the American recession will likely come slow the business. If we place in a medium-term perspective, the potential rebound of the action appears Cegedim result, while profits in 2008 are expected to pay only a dozen times. It may therefore be seen on the folder with the approach of 50 euros