Dendrite Shares Surge on Cegedim Buyout
NEW YORK (AP) -- Dendrite International Inc. shares surged in Friday trading after the company agreed to be bought for $751 million.
Before the market opened, Cegedim SA, a French maker of software used by pharmaceutical companies, said it would buy Dendrite, a provider of sales and marketing services for pharmaceutical companies, for $16 per share.
Goldman Sachs analyst Christopher McFadden, who rates Dendrite "Neutral," said Dendrite has "numerous operational issues," but the company will have a better chance of working those problems out as part of a larger business.
"The company may also be able to access additional resources to follow through on its strategy to build out its non-SFA (sales force automation) business," McFadden wrote in a note to investors.
Shares of Dendrite hit a new 52-week high of $15.63, before closing at $15.53, up $2.74 or 21.5 percent on the Nasdaq Stock Market. |
