Dental News Roundup August 2010
BY LAUREN UZDIENSKI, AUGUST 31, 2010
Earnings
Nobel Biocare reported 2Q:10 revenue of EUR 155.0 million ($189.2 million), down 6% from the year-ago period and beating estimates by EUR 3.5 million ($4.3 million). The company notes that North American and APAC sales contributed to improved sales momentum in the second quarter, though they attributed below-market growth to geographic mix in Europe and a higher exposure to larger case treatments. Growth rates exclude the effects of currency. The company reported operating profit of EUR 30.2 million ($36.9 million) for the quarter, down 28% on an adjusted basis.
Sirona reported FQ3:10 revenues of $182.4 million, up 6% over FQ3:09 and missing estimates by $3.6 million. Among segments, Imaging Systems were up 22%; CAD/CAM was up 4%; Instruments were up 2%; and Treatment Centers were down 10%. Growth rates exclude the effects of currency. U.S. sales increased by 34%, which the company attributed to demand for the Galileos 3D imaging system and increased CAD/CAM shipments in advance of a U.S. CEREC AC upgrade program. Net income for the quarter was $16.6 million, or $0.29 per diluted share, narrowing from $20.5 million, or $0.37 per diluted share in FQ3:09, and beating estimates by $0.01.
Straumann reported 1H:10 revenue of CHF 392.4 million ($361.6 million), up 4% over the year-ago period, beating estimates by CHF 0.9 million ($0.8 million). For 2Q:10, sales increased by 5%. Sales growth was attributed to implant volume growth, despite the "very demanding" economic climate. Growth rates exclude the effects of currency. Operating profit was CHF 98.8 million ($91.0 million) for 1H:10, up 5% over the year-ago period.
M&A
Two national chains of dental offices, Aspen Dental and Kool Smiles, are up for auction and reportedly receiving private equity bids. Aspen Dental is said to have an offer exceeding $500.0 million.
Regulatory
Biolase Technology received a letter from NASDAQ stating that BIOLASE is not in compliance with the NASDAQ Capital Market's minimum stockholders' equity continued listing requirement of $2.5 million. As of June 30, 2010, Biolase's stockholders' equity was approximately $(1.3) million.
Product Introduction and Update
Sirona Dental Systems celebrated the 25th anniversary of the CEREC CAD/CAM system. During the event, the company launched the VITABLOCS RealLife all-ceramic blocks, which the company says "incorporate a unique, spherically curved dentin core with a complementing enamel coat within the block," as well as the inLab Multilayer Design Option, a high-speed bridge production technique.
Sirona also announced the expansion of infiniDent, a web-based laboratory service, to include Ivoclar Vivadent's IPS e.max CAD material.
Clinical
In a study published in the Journal of Periodontology, researchers found that participants who maintained a healthy weight and had high levels of physical fitness had a lower incidence of severe periodontitis.
The ADA addressed the Institute of Medicine on July 27, making recommendations to "rebuild the dental public health infrastructure and ensure optimal oral health for all." The IOM is conducting a two-part study on national oral health policy.
Operations
Straumann announced the 10-year anniversary of its manufacturing operations at Villeret in the canton of Bern in Switzerland. The company reports that Villeret "is one of the largest state-of-the-art facilities in the dental implant sector" and produces more than million implant system components per year.
Appointments
Biolase Technology appointed current Chairman of the Board Federico Pignatelli as interim Chief Executive Officer. Mr. Pignatelli previously served as President from January 2008 until June 2010 and interim Chief Executive Officer from November 2007 to January 2008.
