Straumann, the second largest dental implant company, has been on our radar a few times this month. First, Straumann is getting press for stating its interest in buying the not-yet-for-sale Biomet 3i. 3i would give it needed scale and management in the US and help the company regain some momentum. Other parties have also expressed interest, so we will have to wait and see how it plays out, if Biomet's future owners decide to sell.
Second, last month, Deutsche Bank maintained a "Sell" rating citing Straumann's lack of a strategy to support a total tooth replacement option and active patient marketing.
On Friday, Straumann countered such criticism by announcing the purchase of etkon, a CAD/CAM company that collaborates with dental labs for the production of restorative products at its milling centers. For those of you new to the dental sector, this is Straumann's competitive move against Nobel Biocare's Procera system. Straumann is trying to position this acquisition as the solution to make them a "one stop shop." It's not truly a complete solution, but it clearly marks the direction the industry is heading.
It will be interesting to see if Straumann follows Deutsche Bank's other recommendation of direct to consumer (DTC) marketing. Nobel has also led the way in this arena with its "Teeth in an Hour" campaign. As we have reported, other areas of orthopedics and some of the cosmetically-oriented dental labs have gone the way of DTC. It is a very expensive option, but a potentially significant means of driving customer growth. In implants thus far, only Nobel has taken the plunge. We will be watching to see Straumann's next move and how the smaller competitors take advantage of their draft.
