$3.96 Billion
Prior Fiscal: $3.92 Billion
Percentage Change: +1.1%
R&D Expenditure: $184M
Best FY23 Quarter: Q2 $1.03B
Latest Quarter: Q1 $953M
No. of Employees: 15,000

In February 2023, Dentsply Sirona’s board approved an organization restructuring, which it expected to net at least $200 million in annual costs saved over the next 18 months due to a new operating model.

Restructuring in this case also meant job cuts—the company reduced its workforce by about 8%-10%. It also created five global business units as well as a senior VP of quality and regulatory role.

The model was developed via Dentsply Sirona’s ongoing review of business and operations.

“We are acting with urgency to implement this operating model, which we believe will drive overdue organizational integration and improve organizational accountability and efficiency,” Dentsply Sirona CEO Simon Campion told the press. “While actions that impact our team are difficult, I am confident that this plan, along with anticipated outcomes from other workstreams, will set Dentsply Sirona on a trajectory to achieve stronger, more predictable results and add significant value for all stakeholders.”

The Charlotte, N.C.-based dental and orthodontic company also appointed former NuVasive CEO Gregory Lucier as its board chairman in September, replacing the retiring Eric Brandt, who had served as chairman for six years. Lucier has been a director for the company since 2019, and officially took office as chairman on Jan. 1, 2024.

In its fiscal year 2023 (ended Dec. 31), Dentsply Sirona reported net sales of almost $4 billion—the slight increase of 1.1% grew the company’s revenue to $3.96 billion. The company cited positive Essential Dental Solutions performance from price increases and good Orthodontic and Implant Solutions performance from price increases and higher orthodontic aligner volumes as the chief reasons. Lower volumes in the Connected Technology Solutions business somewhat tempered the revenue growth last year.

The company’s gross profit declined 1.9% to $2.09 billion because of higher manufacturing and input costs, growing warranty costs, and inventory obsolescence arising from product rationalization initiatives. Foreign currency headwinds also reduced margins by $16 million.

The company’s Connected Technology Solutions business reported sales of $1.17 billion, a 4.1% drop from the previous fiscal year. Lower volumes of imaging and instrument products—particularly in the U.S. and Europe—were the main driver for the decrease. An unfavorable macroeconomic environment and competitive pressure for imaging products also impacted sales, which the company expects will continue into 2024. These decreases were partially tempered by sales of new CAD/CAM products.

The Essential Dental Solutions segment pocketed $1.47 billion of revenue in 2023, rising 2.8% above the prior year. The increase here, according to the company, was due to price increases and higher volumes of preventive consumable products in the U.S. The favorable impact of new product launches also helped, offset by lower volumes of restorative and endodontic consumables.

Orthodontic and Implant Solutions captured $1.04 billion of revenue, growing 3.4% primarily because of higher U.S. volumes of in-office and direct-to-consumer orthodontic aligner solutions. There was also an increase in volume of implants and prosthetics in outside-U.S. regions, particularly in China. Price increases for orthodontic aligners also contributed to the rise, somewhat offset by lower implant and prosthetic volumes in the U.S. and Europe.

The remainder of Dentsply Sirona’s revenue comes from its Wellspect Healthcare business, which rose 6.6% to $288 million because of higher volumes in all regions, particularly in Europe. The impact of new product launches and price increases also helped the business succeed last year.

The DS OmniTaper implant system rolled out in March at the 2023 Academy of Osseointegration (AO) meeting. The newest member of the company’s DS implant family features a drilling protocol for reduced chair time and pre-mounted TempBase to immediate restorations. It has a conical EV connection as well as an OsseoSpeed implant surface to speed up the healing process. DS OmniTape was officially launched in the U.S. on May 1, 2023.

In April, Dentsply Sirona revealed a major milestone in its effort to advance global cleft care. The company partnered with Smile Train and FDI to develop the first-ever global standard protocols for digitalized cleft treatment, which encompass presurgical orthopedics, mixed dentition, permanent dentition, and oral rehabilitation. Each field has a remote monitoring and oral health component.

The trio also created a clinical education course to offer cleft professionals in-depth training on digital cleft care protocols and support integration of digital technologies into treatment plans.

Also in April, the company introduced SureSmile VPro and the SureSmile VPro mobile app in the European market as part of its aligner treatment offering. SureSmile VPro helps accelerate minor anterior tooth movement during patient treatment with aligners.

June saw release of the SureSmileU clear aligner training platform. SureSmileU contains interactive content to support case submission, tips, and instructive videos to guide patient interactions as well as printable resources to support and guide practices during treatment. The platform has five training models: new practice orientation, how to submit a case, case review, clinical application, and integration.

Dentsply Sirona celebrated 1 million patients treated with SureSmile aligners in September. The company also began the next chapter of its workflow integration with 3Shape that month.

The Primescan intraoral scanner gained the ability to connect with the 3Shape dental system software through DS Core so dentists can transmit orders to lab partners. 3Shape TRIOS scanners can be connected to Primemill and Primeprint for in-office milling and printing via 3Shape Unite, DS Core, and the inLab CAD software. Permanent esthetic crowns and removable and temporary dental applications like splints, temporary crowns, and models can be manufactured in the dental practice on the same day.

The OSSIX Agile pericardium membrane was launched in December. Powered by GLYMATRIX technology, it provides a long-lasting barrier for bone and tissue regeneration for low host reactions. It can be adjusted to fit various indications and techniques and can be fixated with tacks, sutures, or screws.

$3.92 Billion
Prior Fiscal: $4.23 Billion
Percentage Change: -7.3%
R&D Expenditure: $174M
Best FY22 Quarter: Q2 $1.0B
Latest Quarter: Q1 $978M
No. of Employees: 15,000

It began in relatively harmless fashion on April 11, when dental equipment and consumables giant Dentsply Sirona announced its finance leader Jorge Gomez, who had been the company’s finance chief since 2019, tendered his resignation to become the CFO of pharmaceutical firm Moderna. At the time, no eyebrows were raised.

A week later, pulses quickened just a little when Dentsply revealed CEO Don Casey had been terminated and removed from the board of directors. Casey had been at the company’s helm since 2018. Board member and former Hillrom chief executive John Groetelaars quickly assumed the CEO role in the interim as the search for a permanent leader began.

On May 10, the plot thickened. Dentsply filed a Form 12a-25 Notification of Late filing for its Q1 report to the SEC because the board of directors had initiated an internal investigation into financial reporting matters. The focus of the investigation was, according to the filing, “use of incentives to sell products to distributors in the third and fourth quarters of 2021 and whether those incentives were appropriately accounted for and the impact of those sales was adequately disclosed in the company’s periodic reports filed with the SEC.” The filing also cited allegations some senior management members directed use of the incentives and other actions to achieve their 2021 compensation targets.

The very next day, former CFO Jorge Gomez resigned from Moderna. And on Aug. 9, Dentsply filed a Form 8-K to reveal chief accounting officer Ranjit Chadha had left the company in an agreed separation. A Sept. 2 Form 8-K then signaled Senior VP and Chief Commercial Officer Walter Petersohn’s departure, shortly following another filing describing a negotiation of various agreements with noteholders for an extension of Q1 and Q2 2022 financial delivery to Nov. 7. They also received a consent fee of 20 basis points of the principal amount of outstanding notes under the agreements.

In the meantime in August, BD executive VP and president of the Medical segment was appointed as Denstply’s new CEO. In September, Integra LifeSciences Executive VP and COO Glenn Coleman was welcomed as the new CFO.

Dentsply’s internal investigation officially closed on Oct. 29 with another SEC filing. The company said it found no evidence of intentional wrongdoing or fraud from its former top executives, but did discover they violated their company’s code of ethics.

The investigation uncovered Dentsply’s North American distributors were offered incremental incentives, including extended payment terms, to buy products for the company to meet certain internal sales metrics in Q3 and Q4 2021, according to the Form 8-K. It goes on to say the incentives were offered in conjunction with net sales of about $38 million and $70 million in Q3 and Q4 2021, respectively. However, the investigation in North America didn’t find evidence former CEO Don Casey or former CFO Jorge Gomez directed this, nor was Dentsply’s accounting firm informed of the incremental incentive arrangements.

The internal investigation did reveal problems with Dentsply’s China operations. It concluded that employees in China processed returns and/or exchanges that weren’t in accordance with provisions contained in existing distributor agreements and sales contracts in the country. The employees also didn’t provide information requested by Dentsply’s local accounting organization regarding the returns and/or exchanges.

“The China Investigation also determined that these actions by certain members of the Company’s local commercial team in China, as well as the former Chief Financial Officer and the head of the company’s Asia-Pacific commercial organization, violated the company’s Code of Ethics and Business Conduct,” the Form 8-K went on to describe.

Adding insult to injury, Denstply’s fiscal year 2022 sales fell 7.3% to $3.92 billion under the—now adjusted to reflect the accurate total of $4.23 billion—prior year. The company’s annual report cites weaker retail performance in various product groups and lower wholesale CAD/CAM equipment volumes. Dentsply attributed this to higher CAD/CAM dealer inventory at the fiscal year’s start which, despite being reduced throughout the year, resulted in about $60 million held in inventory. Ongoing supply chain woes also curtailed the ability to fulfill some Equipment & Instruments orders, particularly for imaging equipment. Higher Orthodontics sales somewhat tempered this decline.

Technologies & Equipment revenue sank 7.4% to $2.3 billion despite higher Orthodonics demand and a benefit from price increases. In addition to the aforementioned high dealer CAD/CAM machine inventory, continuing electronic component shortages due to a constraining supply chain environment and the impact of COVID-19 on the Chinese market stifled growth.

Primescan Connect, a laptop-based version of the company’s intraoral scanner, launched in September. Powered by DS Core, the scanner can be used for restorative indications, implantology, orthodontics, and sleep appliances. It connects with a specified laptop to save space when not in use and helps collaborating with the dental lab by offering validated workflows to all major lab software, according to Dentsply.

Consumables proceeds fell 7.1% to reach $1.6 billion of revenue. Dentsply’s annual report points to lower U.S. and China Endodontic & Restorative sales due to the COVID-19 pandemic as the main cause for the decrease.

$4.25 Billion
Prior Fiscal: $3.34 Billion
Percentage Change: +27.2%
R&D Expenditure: $171M
Best FY21 Quarter: Q4 $1.09B
Latest Quarter: Q1 $965M
No. of Employees: 15,000

Dentsply Sirona must have been concerned with revenue shortfalls during the pandemic. In the years prior, the firm reported sales for several years of approximately $4 billion. There wasn’t much movement from that figure, a worry to be sure (so much so, it may have ultimately been the leading cause for the April 2022 firing of the organization’s CEO). But during the prior fiscal (2020), the firm reported a drop of about 17%. While a gain during its latest fiscal period of 27.2% looks impressive, when put into context, it simply positioned Dentsply Sirona close to where the company’s stagnation had been fixed in recent years. The $4.25 billion figure was just a bit greater than previous company revenue highs.

Perhaps as a result of the lackluster financial growth, an M&A strategy was actively implemented. Several of the deals were announced right at the start of the 12-month period, in fact.

The first transaction had closed on the last day of the previous fiscal but was announced during FY21. Byte—a provider of a doctor-directed, clear aligner system—was purchased for just over $1 billion in an all-cash deal. The incoming Byte product offering was reported to add scale to Dentsply Sirona’s SureSmile clear aligner business, providing a unique direct-to-consumer opportunity.

Then-CEO Don Casey said, “We are excited to take the next step in our evolution by bringing Byte into our organization. We have been pleased with the growth of our SureSmile clear aligner business, and we are confident that adding the innovative platform of Byte adds scale for us in the important clear aligner market. We look forward to working with the team at Byte as we utilize our collective strengths to expand patient access to quality care and support the success of dental professionals around the world.”

Just weeks later, it was revealed Dentsply Sirona was entering into another deal that would bring Datum Dental into the fold. Datum Dental is the provider of the OSSIX regenerative solutions portfolio. Driven by the GLYMATRIX core technology, the OSSIX line would help bolster the firm’s implant dentistry offerings.

“Datum Dental perfectly fits in our strategy to deliver innovative and meaningful solutions for our customers. The biomaterial sector is an important cornerstone of the future of dentistry,” explained Gene Dorff, group vice president of the Implants Product Group. “The acquisition is another important step for us to deliver on our purpose to empower dental professionals to provide patients with better dental care and make people smile.”

Pausing for a few months to play catch up on back-to-back acquisitions, the organization then made another move in June. This time, the buy brought in the assets of Propel Orthodontics. The acquired lines were geared toward improving treatment times and patient comfort. They also added digital capabilities to Byte and SureSmile to improve patient engagement and treatment monitoring.

Specifically, the at-home High Frequency Vibration (HFV) product line consists of the VPro5, VPro+, and VPro, and supports both active treatment and retention at just five minutes per day. When used as part of an orthodontic treatment plan, this device featuring patented high frequency vibrational technology can increase patient comfort and may reduce overall treatment time significantly. Also obtained was the firm’s VPro Fastrack App, which helps patients and providers remotely monitor the orthodontic treatment plan.

As mentioned previously, these organizations and technologies join a company that’s been relatively flat in terms of growth over several years. Its $4.25 billion in sales was split across its two primary businesses. While both saw great double-digit gains, they are attributed primarily to the return of procedures following the ease of pandemic restrictions in place the year prior.

Technologies & Equipment—treatment centers, imaging equipment, motorized dental handpieces, and other instruments for dental practitioners and specialists—grew almost in parallel to the company with a 28.7% rise to tally $2.52 billion. Within the segment, Equipment & Instruments led with $733 million in revenue contribution (versus the previous period’s $580 million). CAD/CAM took in $590 million (vs. $457 million). Orthodontics ballooned from $161 million to $274 million. Implants offered $624 million to the total compared to $476 million. Finally, Healthcare raked in $303 million (vs. $287 million).

The sister business, Consumables (value-added dental supplies and small equipment), expanded 25% to end the fiscal at $1.73 billion. This unit’s two divisions, Endodontic & Restorative and Other Consumables, provided $1.26 billion and $467 million respectively. While every segment saw an increase over 2020’s fiscal figures, Other Consumables was the only one to not show a rise over its 2019 figure as well.

The company also announced a variety of updates with regard to product lines making their way to the market. For example, CEREC Tessera Advanced Lithium Disilicate CAD/CAM Blocks, a material for CAD/CAM-fabricated restorations for anterior and posterior region, was introduced. The advanced lithium disilicate ceramic is characterized primarily by the fact it can be fired exceptionally quickly.

An upgrade of the Connect and CEREC Software (5.2) and improved firmware provided Primescan and CEREC users with additional options for making treatment more efficient, faster, and more convenient with digital workflows.

CEREC MTL Zirconia, a zirconium-oxide enriched with yttrium oxide, offers great strength, fine esthetics, and enhanced processing. A key factor in the material developed and produced by VITA Zahnfabrik is the special color technology consisting of a multilayer color gradient, resulting in very natural esthetics without compromising strength.

The company also announced four expansions of its Lucitone Digital Print Denture System. Three of the expansions are for the digital production of custom tooth arches and segments, including the addition of Lucitone Digital Value 3D Economy Tooth and Trial Placement resin; DS Multilayer PMMA Discs for milling premium denture teeth; and the eventual 2022 release of Lucitone Digital IPN, a printed premium denture tooth material. The fourth involved planned printer validations.

In addition, Dentsply Sirona announced a series of updates to its SureSmile Aligner Software in October and further enhanced the overall user experience and interface. The company also revealed the planned integration of SureSmile VPro, an at-home High Frequency Vibration technology device, to the SureSmile workflow to take place later in the year.

In addition to an active product development pipeline, Dentsply Sirona attempted to shore up future growth through partnerships as well. One such instance saw the firm team with 3Shape, another provider of dental product solutions. The arrangement involved multiple strategic opportunities to improve digital dentistry and oral health. One of the first initiatives focused on a collaboration to ensure better access of TRIOS users to SureSmile Clear Aligners. Later in the year, it was announced the tandem provided a seamless and secure integration of Dentsply Sirona’s Connect Case Center with 3Shape’s Dental System software.

$3.34 Billion
Prior Fiscal: $4.02 Billion
Percentage Change: -17%
No. of Employees: 5,100

The media would later deem it the “quake that shook Mexico City awake.”

The shaking lasted three to four minutes—a seismic eternity, really—and caused catastrophic damage, destroying or damaging more than 3,500 buildings, and killing 10,000 people, many of whom perished in their sleep. The 8.1-magnitude temblor was one of the strongest ever to strike the area and was felt as far away as Los Angeles and Houston.

It was a day the world would not soon forget, tainted forever by a tragedy of historic proportions.

Indeed, Sept. 19, 1985, was one of Mexico City’s darkest days on record.

Yet Mother Nature wasn’t the only history-making force that day. On the other side of the world, two men precipitated the age of digital dentistry with the introduction of their computer-based ceramic restoration technology.

Swiss dentist Prof. Werner H. Mörmann, Ph.D., and electrical engineer Marco Brandestini, Ph.D., developed a system called CEREC (CERamic REConstruction) that used scanned two-dimensional images to create customized dental inlays for immediate placement in patients. The original system (CEREC 1) featured a large diamond milling wheel that allowed clinicians to create ceramic dental inlays and onlays from a monochromatic ceramic block in a single appointment.

“The task of designing a technical process, from data acquisition to the finished restoration in a dental application, fascinated us,” Mörmann recalled in a September 2006 Journal of the American Dental Association article. “We saw a new restorative world develop in front of our mental eyes.”

Mörmann and Brandestini shared that world with humankind on Sept. 19, 1985, conducting the first chairside CEREC treatment on a patient at the University of Zurich Dental School. (Fun fact: The pair called their original device a “lemon” because of its color).

With healthcare digitization at the time barely in its infancy (more like embryonic at that point), Mörmann and Brandestini’s invention impressed few clinicians at first. But the system’s fan base steadily grew as various hardware and software upgrades and innovations expanded its capabilities in restorations, implantology, and orthodontics. Crown software was introduced in the late 1990s, followed by 3D technology, which allowed dentists to construct restorations based on computer-generated three-dimensional models.

The CEREC’s level of precision improved with Bluecam, based in short-wave blue light, and a color-streaming powder-free intraoral camera unveiled in 2012 streamlined the user interface with intuitive menu navigation. The latest developments include powder-free digital impressions in natural colors, and artificial intelligence software to enhance restoration production.

“At the heart of it, CEREC has only continued to get better,” Dr. Joachim Pfeiffer, former vice president of Technologies and chief technology officer at Dentsply Sirona, said in a 35th anniversary video (the company develops, manufactures, and markets the CEREC system). “Each new device has perpetually left the old one in the dust. There was a series of critical points where looking back you say, ‘Sure, clearly we did the right thing.’ There was a step that moved from the very simple disc-based grinding chamber to shape the ceramic to today’s design, which uses two diamond stylises to produce highly delicate structures and almost all relevant forms.”

“Thirty-five years ago, people laughed at our idea for digital dentistry, but today it has become a standard in treatment and documentation,” Mörmann said. “And I stand by my prediction that by the 50th anniversary of CEREC, if not sooner, every [dental] practice will have CEREC or at least an intraoral scanner.”

Perhaps by then, the world will have freed itself from the throes of COVID-19, and Dentsply Sirona can mark the milestone without limitations. Last year’s CEREC celebrations were somewhat tarnished by the company’s pandemic-induced financial struggles. Lockdowns and social distancing measures significantly curtailed demand for Dentsply Sirona’s products, as patients were reluctant to seek routine care. Many dental practices also implemented employee-based safety protocols that ultimately reduced patient traffic.

To insulate itself from the sudden demand dropoff, the company significantly reduced or suspended product manufacturing and distribution, and furloughed employees. At one point during the year, 75 percent of the firm’s global workforce was either furloughed, placed on “short work week” programs, or toiling for reduced wages, according to Dentsply Sirona’s 2020 annual report. No permanent layoffs occurred, however, due to COVID-19.

The salary cuts involved board members and upper level management as well. CEO Donald M. Casey Jr., in fact, relinquished all but the base portion of his salary to fund his healthcare benefits contributions, and each board member waived one-quarter of his/her annual cash retainer for 2020.

“Given the business uncertainty at the time, the company’s financial health was of paramount concern,” Casey wrote in the annual report. “Steps were taken to increase liquidity through an expansion of our revolving credit facilities and a $750 million long-term debt offering. The speed and low cost of these actions underscore the financial strength of the company. Additionally, aggressive steps were taken to reduce spending across all aspects of the company. The global pandemic challenged Dentsply Sirona in a truly unprecedented way. Reflecting on 2020, we believe that Dentsply Sirona has emerged as a stronger, more effective company. We have sharpened our strategic focus, improved our cost structure, and enhanced our liquidity. While there is still considerable uncertainty and challenges going forward, we are optimistic about our future.”

That optimism clearly is based on the company’s most recent (dismal) past. Casey and his executive team are hopeful 2021 sales will rebound from last year’s 17 percent loss (from $4.03 billion to $3.34 billion) as demand continues to recover.  Gross profit in 2020 tumbled 23.5 percent to $1.657 and net income per basic share fell more than two-thirds (67.8 percent) to 38 cents.

U.S. revenue fell 19.2 percent to $1.11 billion, while European proceeds were down 14.1 percent at $1.38 billion, and Rest of World sales tumbled 18.8 percent to $846 million.

Among the causes for Casey’s optimism is the acquisition of Byte, a high-growth, doctor-directed, direct-to-consumer clear aligner company. The $1.04 billion deal will allow Dentsply Sirona to scale up its clear aligner business and capitalize on Byte’s dentist and provider network. Last summer, the company announced its exit from the traditional orthodontics business, which includes brackets, bands, tubes, and wires.

Dentsply Sirona executives said the company would use some of its orthodontics assets to support growth in the clear aligner sector, which has experienced strong demand and sales. The traditional orthodontics business was a component of the firm’s Technologies & Equipment Segment and reported $132 million in sales two years ago.

The Byte purchase allows the smaller company to benefit from Dentsply Sirona’s commercial resources and R&D capabilities; Byte estimates it will generate $200 million in product sales this year.

“We have been impressed with the passion that Dentsply Sirona has for innovation in dentistry,” Byte CEO Neeraj Gunsagar said when the deal was announced earlier this year (it closed on Dec. 31, 2020).

“This combination provides Byte with unmatched resources and R&D capabilities that allow us to reach additional customers and accelerate our mission of changing the world one smile at a time. The transaction enhances our ability to offer affordable care to patients and increases awareness of the overall benefits of oral care. Our team is committed to driving our strong growth, and we are delighted to join the Dentsply Sirona family as we execute on our shared mission.”

$4.03 Billion
Prior Fiscal: $3.99 Billion
Percentage Change: +1.5%
No. of Employees: 15,200

Dental equipment supply company Dentsply Sirona had been based in York, Pa., for over a century. But last May the firm declared that Ballantyne Corporate Place in Charlotte, N.C., would become the home for its new commercial hub—including an office, warehouse, and Dentsply Sirona Academy.

The move is part of the company’s plan to centralize sales and service infrastructure in Charlotte, as well as simplify the organization and enhance clinical education capabilities, according to a company press release. Nicholas Alexos resigned as CFO in connection with the relocation, prompting rumors that an influence on jobs in the York location might occur. (Jorge M. Gomez, previously CFO of Cardinal Health’s medical and pharmaceutical segments, replaced Alexos as CFO in July.)

“York will remain an important hub and production facility for Dentsply Sirona,” Mag. Marion Par-Weixlberger, a company spokesperson, told York Daily Record. “We do not anticipate a major influence on jobs in York.”

“York always has been and will continue to be an important location for our company in the future,” Par-Weixlberger continued. “We have more than 900 employees working for Dentsply Sirona in the York area and their contributions are important to the success of our company.”

The dental and orthodontic equipment giant posted a minimal (1.5 percent increase) revenue change in fiscal 2019, just topping $4 billion. Driving the slight growth was a strong performance in Digital Dentistry and a positive performance in Equipment & Instruments and Healthcare. These rises were tempered by lower Consumables sales. Technologies & Equipment sales totaled $2.3 billion last year, growing 5.3 percent from the prior year. The Digital Dentistry business’ success was mainly provoked by new product sales in the CAD/CAM business. Consumables posted $1.7 billion in sales, dropping 4 percent. A 3 percent unfavorable currency impact due to the strengthening U.S. dollar, along with declining Laboratory and Endodontic segment sales, overshadowed growth in the Restorative business.

U.S. sales rose 7.7 percent to reach $1.3 billion due to strong Technologies & Equipment performance. European revenue sank 3.1 percent to $1.6 billion, mainly due to 5.3 percent unfavorable currency impact despite higher Technologies & Equipment sales in the region. Rest of World proceeds remained flat at $1 billion, again resulting from an unfavorable currency impact.

Cooperation between Dentsply Sirona and CAD/CAM software manufacturer exocad beginning last February promoted digital workflow in the practice and laboratory. International customers of both companies now have access to direct transmission of digital impressions from Dentsply Sirona’s intraoral scanner to exocad labs. Both companies also aligned elementary interfaces between inLab hardware and exocad software. Dentsply Sirona tooth lines and material-specific parameters in exocad’s DentalCAD software were also implemented.

Dentsply Sirona introduced the Primescan intraoral scanner last February. It scans surfaces of the teeth with high-resolution sensors and shortwave light, capturing up to 1 million 3D points a second. A full jaw impression is complete in two or three minutes. Areas up to 20-mm deep can be scanned for digital impressions or subgingival or deep preparations. The digital 3D model can be transmitted to a lab via the company’s Connect software and further processed with different software for orthodontic or implant treatment planning. Cloud-based SureSmile Aligner software was released alongside Primescan so practitioners can make changes to the plan and adapt systems to individual patients’ needs.

March saw the release of the Orthophos series X-ray units: Orthophos E, Orthophos S and Orthophos SL. Orthophos E provides 2D images and has an optional cephalometric arm, making it suitable for orthodontics. Orthophos S can be used as a 2D device or as a combined 2D/3D device. An auto-focus function enhances contrast in panoramic images, and doesn’t require manual selection for the shape of the jaw arch or existence of tooth anomalies. Orthophos SL contains a direct conversion sensor and sharp layer technology for an “all-around package” for digital imaging. There are comprehensive 2D programs or a number of volume sizes depending on the clinical problem. Metal artifact reduction software also automatically detects metals in every volume and reduces artifacts.

The Cercon ht and xh ceramic framework materials also launched last March. Cercon ht allows the lab to offer monolithic or partially veneered restorations. Cercon xt has increased translucency making it more appealing for the anterior tooth region with any veneering.

The Azento digital implant workflow system and accompanying Acuris dental implants reached Europe last March as well. Azento streamlines implant planning, purchasing, and delivery for a single tooth replacement by efficiently connecting with qualified laboratories through a case management portal. Acuris implants are based on a conometric concept using friction instead of a screw or cement to secure the crown and cap to the abutment in the final prosthetic part of the implant treatment. Placing the final crown takes seconds instead of minutes.

The Multimat Cube and Multimat Cube press ceramic furnaces hit the market last July. The furnace is universal for all commercially available dental ceramics, including lithium silicate and lithium disilicate. High process repeatability and cutting-edge firing results are provided by multi-stage heating and two-stage programs, together with automatic program resumption after a brief power cut.

The firm released CEREC Ortho treatment simulation software at last August’s American Association of Orthodontists Annual Session. Used with Primescan, it adds a base to the model, comprehensive model analysis, and treatment outcome simulation that can immediately be used for consultations. It also features a Moyers mixed dentition analysis, transverse distance, symmetry, occlusion class, overjet, and overbite capabilities.

In September, Dentsply Sirona and digital manufacturing firm Carbon launched the FDA-cleared Lucitone Digital Print Denture workflow and material system. The first digitally produced dentures are optimized for Carbon M-series 3D printers. Labs can print up to eight denture arches in about two hours, and Lucitone Digital Print 3D Denture Resin resists breakage because its formula exceeds ISO high impact and flexural strength standards.

The Xios AE and Schick AE intraoral sensors hit the shelves last October. Advanced exposure technology combines strong image quality (theoretical resolution of 33 lp/mm) with filtering enhancements and a broadened exposure spectrum for a solid safe diagnostic base even in lower X-ray dose ranges. Their ultrasonically welded housing protects from moisture penetration. Radiation fluctuations or suboptimal exposure settings are counterbalanced, and X-rays are instantly available for diagnosis.

October also saw the acquisition of OraCheck and subsequent launch of generation 5 CAD/CAM software with OraCheck. In conjunction with a digital optical impression system, OraCheck visualizes 3D change on virtual optical scans on a computer. It offers patient monitoring before, during, and after treatment. Updated Connect Software 5.1 offers more digitally feasible treatment options for orthodontics and implant dentistry. CEREC Software 5.1 for fabricating chairside restorations was also released alongside these.

COVID-19 Consequences

Q1 2020 Revenue: $874.3 Million
Q1 2019 Revenue: $946.2 Million
Percentage Change: -7.6%

The Consumables business was hit hardest by the pandemic, dropping 16.8 percent to $354 million. Demand was lower in all regions as dentists and customers reduced dental visits and procedures in response to COVID-19. The Preventive and Endodontic segments saw the largest losses. Technologies & Equipment sales were flat at $520 million—revenue from new CAD/CAM products overtook the decline in Implant sales due to reduced dental procedures.

Beginning April 13, Dentsply Sirona salaried employees above a certain pay level took a 25 percent pay cut for 90 days, including members of the executive team.

AT A GLANCE
$3.99 Billion
Prior Fiscal: $3.99 Billion
Percentage Change: ±0%
No. of Employees: 16,400

Toward the end of 2017, Dentsply Sirona experienced an exodus of several top members of its management team, including Bret Wise, executive chairman; Jeffrey Slovin, CEO and director; and Christopher Clark, president and COO. In reports of the change, an unnamed source claimed the shakeup was related to lagging earnings. An article in The Wall Street Journal stated the executives were forced out by the company’s directors, while a regulatory filing stated the bigwigs were terminated without cause.

Regardless of the reason, several interim management members filled the vacant roles until the start of the company’s 2018 fiscal year (which follows the calendar year) when the firm announced a new CEO. Donald M. Casey Jr. took the reins of Dentsply Sirona, the still relatively new entity that formed as the result of a $14.5 billion merger in 2016. Casey, who prior to taking on the role had served as CEO of the Medical segment of Cardinal Health, was brought in “to lead Dentsply Sirona to achieve its full potential,” according to Eric K. Brandt, non-executive chairman of the board.

Thrust into the arguably unenviable position of attempting to right the ship, which still seemed to be attempting to find its way following the merger, Casey admitted the company’s financial results in 2018 were “clearly disappointing” in his letter to shareholders in the firm’s annual report. In that same letter, he explained that based upon a diagnostic of the company conducted after he took on his new position, the firm was rolling out a comprehensive restructuring plan. The plan was organized around three key objectives: accelerate growth, improve margins, and simplify the business. As a result, the company expects to experience annualized top line growth of 3-4 percent and annual net cost savings of $200-$225 million by 2021, in addition to other positive effects.

That impact would certainly be welcome for a company that was flat in terms of sales growth between 2017 and 2018. Its $3.986 billion in net sales in 2018 was just short of 2017’s high water mark of $3.993 billion for the firm (by approximately $7 million).

In its Technologies & Equipment segment, which accounted for about 54 percent of Dentsply Sirona’s net sales in 2018, there was a 3 percent decline compared to the prior year. It finished with 2.098 billion in net sales (excluding precious metal content), short of 2017 by about $62 million.

The unit is comprised of two portions—Dental Technology and Equipment Products, which represented about 45 percent of the overall business in 2018, and Healthcare Consumable Products, which was only about 9 percent during the same fiscal year. The Dental Technology and Equipment Products primarily consist of treatment centers (basic and sophisticated dentist chairs), imaging equipment, and CAD/CAM systems for dental practitioners and laboratories. The Healthcare Consumable Products include urology catheters, medical drills, and other non-medical products.

On the other hand, the Consumables Segment offered a positive for the firm in 2018. Accounting for 46 percent of the net sales for the overall company’s 2018 fiscal year, its more than 3 percent rise over 2017 saved the company from experiencing a noteworthy financial loss when compared against the prior year’s net sales. The unit, which offers value-added dental supplies and small equipment used in dental offices for the treatment of patients, as well as specialized treatment products used within the dental office and laboratory settings, rose to $1.85 billion in net sales (excluding precious metal content) in 2018.

When examining the regions in which Dentsply Sirona offers its goods, its more prominent challenges emerge. The firm gained over 3 percent in net sales in both Europe and Rest of World, where it enjoyed net sales of $1.64 billion and $1.04 billion respectively. In the United States, however, net sales shrunk more than 7 percent compared to 2017 to finish at $1.27 billion—a difference of almost $100 million between the two fiscal years.

In addition to the aforementioned reorganization plan, Dentsply Sirona placed several irons in the fire in 2018 to try to get onto the right track for growth. In the first quarter of the fiscal year, it made two strategic acquisitions. Cleverdent, the first transaction, was the developer of the ClasenUNO, an innovative fusion of a dental mirror and high volume evacuation tip. According to the company, the device creates efficiency for clinicians performing two-handed dentistry and reduces the need for four-handed procedures by enabling assistants to complete other tasks.

The other purchase was for an orthodontic care firm, OraMetrix, for $120 million, in addition to an additional payment of $30 million, subject to earn-out provisions. OraMetrix offered an advanced, CAD platform developed for dental professionals to deliver consistently predictable orthodontic outcomes. According to a statement from Dentsply Sirona, the combination of its digital technologies, GAC’s bracket expertise (a subsidiary of Dentsply), and the OraMetrix solution will enable Dentsply Sirona to provide a comprehensive orthodontic offering that will include a full arch clear aligner solution.

New products were also a focus for the firm in 2018, seeking to not only generate growth from acquisition, but rather through organic means as well. Notable announcements included:

• • Introduction of the SICAT Endo 3D software for improved planning and workflow in endodontic treatment. It offers advantages for dental professionals such as enhanced diagnostics, improved certainty in planning, and optimized accuracy of treatment through the use of surgical guides.

• • Launch of Acuris, an implant based on a conometric concept that uses friction instead of a screw or cement to secure the crown and the cap to the abutment in the final prosthetic part of treatment.

• • Release in the U.S. market of the SiroLaser Blue, the first dental diode laser in the country that emits a blue light at a wavelength of 445 nanometers, which enables very fast, precise, and virtually painless cutting.

• • Availability of the MATRx plus—a multi-function device capable of performing both a standard home sleep test and an oral appliance trial—following de novo clearance being granted by the FDA. The product is available through Dentsply Sirona as part of an agreement with Zephyr Sleep Technologies.

• • U.S. launch of Azento, a single tooth replacement solution that is highly customized and based around each patient’s digital scans.

• • Introduction of Ovation S polysapphire clear brackets, which are developed from a specially formulated ceramic material.

The firm also made headlines during the year with the opening of a new facility—Dentsply Sirona Academy, Charlotte—in Charlotte, N.C. The location was envisioned to be a multi-purpose training facility, enabling the firm to showcase dental product solutions in a clinical setting. According to the firm, the 28,525-square-foot academy offers a variety of clinical and technical curriculums, including hands-on teaching, live lectures, and on-demand webinars. According to an article by The Charlotte Observer, the location was selected over the firm’s headquarters (York, Pa.) in part due to a nearly $4 million incentives package from North Carolina based around job-creation goals. Dentsply Sirona said it was seeking to make the facility its new commercial hub, adding 320 positions at the location over the next three years. More recently, in May 2019, the Board of Directors for the company voted to move the firm’s headquarters to the Charlotte address.

$4 Billion
NO. OF EMPLOYEES: 16,100

Their behavior was off.

Clearly, something was amiss with the two adult lions rescued from illegal captivity in Abu Dhabi, the capital and second most populous city of the United Arab Emirates. Wildlife conservationists were fairly certain the pair’s odd conduct was physical rather than emotional in nature—i.e., not related to depression, anxiety, PTSD, or any other psychological condition.

The animals’ behavior, actually, was more emblematic of a nasty toothache (restlessness, irritability, trouble eating and sleeping). In fact, all signs pointed to a root canal.

“They were suffering from severe pain and root canal surgery was the only solution,” Rone’l Barcellos, manager of the Abu Dhabi Wildlife Center, told Gulf News last winter. The Centre teamed with the Sharjah Breeding Centre for Endangered Arabian Wildlife and Dentsply Sirona Inc. to relieve the lions’ suffering.

South African veterinary surgeon Dr. Gerhard Steenkamp voluntarily performed the root canal procedures in early February 2017 using custom-made stainless steel files from Dentsply Sirona. The dental equipment giant developed a sequence of READYSTEEL Senseus Hedstroems from ISO 030 to ISO 180 to allow Steenkamp to easily and quickly remove damaged pulp tissue from the lions’ damaged teeth. The files from ISO 030 to ISO 140 increased in increments of 10, and then by 20 up to ISO 180. The active part per file was 60 mm, and total length (sans handle) reached 150 mm.

Steenkamp saved the male lion’s fractured tooth, but could only save one of the female’s two broken teeth.

“Finding files of suitable sizes and active working lengths for dental procedures on larger animals is a difficult task,” said Camille d’Halluin, senior product manager at Dentsply Sirona Endodontics. “Although the core focus of Dentsply Sirona Endodontics is on human patients, we are proud to lend our support and global reach to Dr. Steenkamp’s efforts. With the production of hundreds of custom-made endodontic files and the donation of a X-Smart iQ and ProTaper Gold files, we hope to enable Dr. Steenkamp to continue his good deeds worldwide.”

The lions’ uplifting tale infused some much-needed joy last year into an otherwise bleak chapter of Dentsply Sirona history. The challenges were plentiful and perceivably pivotal in 2017 as the company contended with lingering fallout from its $14.5 billion merger with Sirona Dental Systems the previous year: a $1 billion second-quarter loss; an executive management shakeup; and a U.S. Securities and Exchange Commission investigation into accounting practices.

Yet the year was not a total washout—net sales rose 6.6 percent to $3.9 billion and gross profit swelled 9.4 percent to $2.2 billion. Revenue in both of the company’s operating segments went up, as did proceeds in all three geographic regions.

Technologies & Equipment sales jumped 8.8 percent to $2.16 billion, while Consumables revenue rose 5.8 percent to $1.8 billion. U.S. sales climbed 4.6 percent to $1.36 billion, and European revenue mushroomed 10.8 percent to $1.57 billion. Rest of World sales, meanwhile, increased 6.1 percent to $1 billion.

“Fiscal 2017 was a challenging but ultimately positive year for the organization,” newly minted CEO Donald Casey told investors in Dentsply Sirona’s 2017 annual report. “We did not meet our initial financial guidance. The transition [to expand distribution of our equipment business in North America], coupled with integration challenges, hindered the company’s ability to execute. As the year closed, however, we began to turn the page on how we can focus on growing our portfolio of products and services.”

Casey vowed to recapture Dentsply Sirona’s profit-making potential through a three-pillar plan comprised of improving sales force efficacy, accelerating the pace of innovation, and increasing market share in developing regions (Asia, Latin America, the Middle East).

“One of the most important lessons from 2017 is our need to refocus on our fundamentals,” Casey wrote in the annual report. “We are in a very attractive market with a great portfolio of brands and products…We have the opportunity to transform dentistry by delivering products and solutions that enable better, safer, and faster care. If we provide our customers with unique dental solutions, we should be able to grow faster than the market and create significant shareholder value.”

Dentsply Sirona tested that theory last year with the introduction of several new products, including the Orthophos SL X-ray device and Cavitron built-in ultrasonic scaler with the Intego line of Treatment Centers (for removing stubborn calculus).

The Orthophos SL provides high definition and standard dose modes as well as a 3D I-X with low dose mode to best suit patients’ needs. The machine provides indication-based diagnostics using CBCT images in the same dose range as two-dimensional images, according to the company.

In a nod to its digitally-savvy clientele, Dentsply tweaked its decades-old CEREC CAD/CAM system last year to allow the export of scan data in STL format. The update enables dentists to use CEREC Omnicam scans seamlessly when collaborating with dental labs or other clinical planning software.

Dentsply Sirona also bolstered its product offerings (and future earnings prospects) through two acquisitions and an academic partnership. The latter occurred at the start of 2017 and involved the University of Pennsylvania School of Medicine. Dentsply Sirona agreed to provide SmartLite Focus L.E.D. curing lights to incoming students through 2021 and work with Penn Dental Medicine faculty to fine-tune and develop a Class II Solutions message using various products, including: SmartLite Focus lights, Palodent Plus Sectional Matrix System, Prime & Bond Elect Universal Adhesive, SureFil SDR flow+ Bulk Fill Flowable, TPH Spectra HV, and LV Universal Composite and Enhance Finishing System.

Two months after announcing the partnership, the company purchased RTD (Recherches Techniques Dentaires), a French provider of endodontic posts, and in September, acquired gutta-percha material science from Healthdent Technology International. Previously, Healthdent supplied Dentsply Sirona with gutta-percha master cones for the ProTaper Gold and WaveOne Gold file systems worldwide, as well as the ProTaper Next and TRUshape file systems in North America. The formation is trademarked as Conform Fit.

Healthdent’s patented gutta-percha formulation is designed to enable the high-precision injection molding of gutta-percha master cones that are compatible with the shapes created by multi-tapered file systems. The formulation also is designed to provide a lower melt temperature and ideal flow characteristics that provide better performance of the gutta-percha in warm obturation techniques. “Healthdent’s gutta-percha material technologies are an ideal addition to the Dentsply Sirona Endodontics portfolio and perfectly complement its range of nickel-titanium root canal preparation file systems,” Bill Newell, senior vice president of chairside consumables and endodontics at Dentsply Sirona, said when the acquisition was disclosed.

Newell was one of the survivors of a management shakeup that occurred less than a week after the Healthdent deal was announced and eventually resulted in the departure of five top Dentsply Sirona leaders, including former CEO Jeffrey T. Solovin. Casey joined the company in February 2018 from Cardinal Health, where he was CEO of that firm’s Medical segment.

$3.7 Billion
NUMBER OF EMPLOYEES: 15,700

The 2016 fiscal year was one of substantial transition for the company formerly known only as Dentsply. By the close of that year, it emerged as a larger entity with a broader product offering. The merger with Sirona Dental Systems, announced in 2015, was finalized on Feb. 29, 2016, with the resulting Dentsply Sirona now billing itself as The Dental Solutions Company.

While both previously independent companies supported the dental health industry, each maintained a focus on different product areas. Following the completion of the merger, the result was a company with offerings that provided a unique compliment to the other’s innovations. Dentsply had been primarily focused on dental consumables while Sirona had products in the dental technology and equipment space. Together, the company claims to now be the largest and most diversified manufacturer of professional dental products and technologies.

“With our merger complete, Dentsply Sirona can now focus its efforts on empowering dental professionals to provide better, safer, and faster dental care. As The Dental Solutions Company, we will drive long-term growth by being uniquely positioned to deliver innovative solutions and support our customers with the broadest product portfolio and the largest sales and service infrastructure in the industry. Dentsply Sirona will continue to be at the forefront of the digitization of dentistry, single-visit dentistry, and improving clinical outcomes for patients around the world,” Jeffrey T. Slovin, CEO of Dentsply Sirona, stated in a release announcing the completion of the merger.

That commitment was exhibited in the results the newly formed company posted in its first year as a unified entity. While Dentsply’s revenues had been relatively flat in 2012 ($2.93 billion net sales) through 2014 ($2.92 billion net sales; $2.95 billion net sales in 2013), and even saw a drop in 2015 ($2.67 billion net sales), that changed in 2016 with a significant bump. The company posted $3.75 billion net sales for the year, rapidly making good on promises made during the merger transaction to capitalize on existing synergies that would allow for cost savings. Undoubtedly, an increased sales force and enhanced product line also contributed to the growth observed in 2016. Specifically, the company reported that Sirona contributed net sales of $1 billion to the company’s Consolidated Statements of Operations during the period from Feb. 29, 2016, to Dec. 31, 2016.

More specifically, the breakdown of those sales was split among the company’s main segments of dental consumable products, dental technology products, and healthcare consumable products. The product leader for the company remains as dental consumables, even post-merger. That segment accounted for $1.77 billion in 2016, up just a bit over 2015 but still not as high as 2014’s $1.81 billion sales total. The dental technologies sector saw the most significant increase, undoubtedly due to the merger and could potentially pass by dental consumables as the company’s lead product line in terms of sales in the coming years. In 2016, the dental technologies portion posted $1.66 billion in sales, up substantially from 2015 when the company only reported sales of $688 million. The $1 billion contribution from Sirona following the close of the merger mentioned previously is reflected in this increase. Rounding out the company’s offerings, the healthcare consumables portion offered a modest $374 million toward the overall total of $3.75 billion for the year. This remained flat with 2015’s total, while it was down from 2014’s $361 million sales figure.

ANALYST INSIGHTS: Combining just a year ago, Dentsply Sirona is turning in strong financial performances in its core Dental and Technologies businesses. As they continue the momentum, it will be interesting to see how they find “tuck-in” acquisitions to continue to stimulate revenue, utilizing the company’s ever-increasing cash power.

—Dave Sheppard, Co-Founder and Principal, MedWorld Advisors

Not satisfied with the increases it saw in 2016, the unified company looked to continue the growth it enjoyed in its debut year following the close of the merger. Significant investments were made to its research and development (R&D) efforts, posting costs for R&D of $128.5 million in 2016. In comparison, Dentsply noted costs for R&D in 2015 and 2014 as $74.9 million and $80.8 million, respectively.

While a majority of the expenses for R&D originate from the company’s internal needs, Dentsply Sirona does provide funding for external research as well, through institutions, as well as dental and medical schools. For example, the company provided a $50,000 research innovation award in endodontics to the West Virginia University School of Dentistry in January 2016. The grant was intended to help equip a 4,000-square-foot research laboratory with the required technology for students and faculty to be able to prepare experimental samples and specimens.

“The generous support of the AAE Foundation and Dentsply will greatly enhance our endodontics research program here at West Virginia University,” said Anthony Borgia, D.D.S., dean of the WVU School of Dentistry. “With this gift, residents and faculty will have new tools to advance our mission to address the present and future oral health needs of the citizens of West Virginia and beyond.”

While an investment in the future through R&D expenditures is critical to ensuring the success of every company’s business health, Dentsply Sirona also sought to further enhance its product offering through a strategic acquisition. In June 2016, it was announced that the company had agreed to acquire all outstanding shares of the privately held MIS Implants Technologies Ltd., headquartered in northern Israel, which resulted in an approximate purchase price of $400 million. MIS (which stands for “Make It Simple,” not “Minimally Invasive Surgery,” which is more commonly associated with the abreviation) Implants has a focus on the value sector for dental products. It has distribution in more than 65 companies and offers a wide range of dental implants and prosthetic solutions. MIS also provides grafting materials and guided surgery services.

“MIS is uniquely positioned to address the value segment of the implant market in both its home region and around the globe. It is strategically important to be able to address the implant market with distinct organizations, portfolios, and brands targeting both the premium and value segments. MIS has a broad portfolio of implants and related products under a well-established brand, making it a great complement to our company,” Slovin stated in a news release announcing the mid-year transaction.

MIS Implants’ value product line should provide yet another choice for dental professionals and their patients in addition to the complete offering Dentsply Sirona provides.

Speaking of the company’s product line, there were a number of additions made to the offerings throughout 2016. Since the company notes its market share at less than 20 percent of the global marketplace, it sees significant growth opportunities in the years ahead. The merger, acquisition of MIS Implants, and investment in R&D are all obvious efforts to enhance that share percentage. Further, the new products announced could have a more immediate impact on that mission.

One such announcement was for the company’s Aquasil Ultra+ Smart Wetting Impression Material. The product offers intraoral hydrophilicity and tear strength for enhanced results. In addition, the material was offered in a newly announced introductory kit that also provided a Targeted Delivery System that, according to the company, gets the clinician up to 34 percent closer to the prepared tooth than more traditional methods.

In August 2016, the company also offered new, high-speed air-driven handpieces and electric attachments to U.S. dentists that were manufactured in Germany. The instrument line was a direct result of the merger, leveraging the company’s Midwest brand as the distribution channel for the devices.

“We are proud to be part of Dentsply Sirona which gives us the opportunity to widen our portfolio of high-end products,” said Dave Hancin, vice president and general manager of Midwest. “We are convinced that the combined know-how of Dentsply and Sirona will provide even better services for our customers. We look forward to leveraging the strengths of our manufacturing teams.”

Getting into the digital healthcare space, Dentsply Sirona announced a new app in March that enabled easier ordering for dental laboratories. The Lab Smarter app offers customers the ability to scan Dentsply denture teeth barcodes, eliminating the need for the traditional paper-based ordering processes that are still common. Once the barcode is scanned, the app electronically transmits a replenishment order to the lab’s distributor of choice. That app is used in conjunction with the company’s smart cabinet technology.

Given the opportunities to gain additional market share and the continually emerging advantages realized from the merger, Dentsply Sirona stands to become an even bigger player in the dental technologies space and potentially move up further on the Top Companies list next year.

$2.7 Billion
NUMBER OF EMPLOYEES: 11,400

What’s in a name? Or rather, what’s in a merger? On Sept. 15, 2015, Dentsply announced that it had negotiated an agreement for a merger with Sirona Dental Systems Inc., manufacturer of several lines of dental products including CAD/CAM restoration systems; digital intra-oral, panoramic, and 3D imaging systems; dental treatment centers; and instruments. The stockholders of both companies approved the proposed transaction (in which outstanding shares of Sirona stock would be converted into the right to receive 1.8142 shares of common stock) in January 2016. Henceforth, the company would be known as Dentsply Sirona, and the transaction was  completed in late February of this year.

CEO Jeffrey Slovin and Executive Chairman Bret Wise characterized 2015 as a “pivotal period” for the company. Unfortunately, pivotal doesn’t always mean successful. In fiscal year 2015 (which ended Dec. 31), Dentsply reported net sales of $2.67 billion—a 7.6 percent decrease from year-end 2014. The source of this decline, according to Dentsply, was a dramatic weakening of the euro in the second half of 2014 and throughout 2015, resulting in a 9.5 percent unfavorable foreign currency translation.

Disregarding that (and excluding precious metal content, in which sales fell by 28.6 percent from 2014 due to reductions in refinery volumes and the declining use of precious metal alloys in dentistry), 2015 net sales grew 1.9 percent from 2014. By region, 2015 net sales on a constant currency basis increased in the United States by 2.6 percent, decreased in Europe by 0.3 percent, and rose by 5.3 percent in the company’s “Rest of World” region. Overall, internal sales growth decreased in every region (0.8 percent, 0.3 percent, and 0.3 percent respectively) due to product line discontinuations associated with Dentsply’s global efficiency initiative.

Dentsply’s business is organized into three operating segments: Dental Consumables, Endodontic, and Laboratory Businesses; Healthcare, Orthodontic, and Implant Businesses; and Select Developed and Emerging Markets businesses. Across the board in 2015, each segment experienced a loss in net sales compared to 2014.

The $1.16 billion Dental Consumables, Endodontic, and Dental Laboratory Businesses revenue in 2015 represented a 4.3 percent loss from 2014. Sales growth in the Dental Consumable businesses partially offset the reduced sales in the Dental Laboratory business, resulting in a 1.7 percent net sales growth on a constant currency basis. Healthcare, Orthodontic, and Implant Businesses’ $968.5 million net sales last year tumbled 9.2 percent from 2014, although increased sales in the Healthcare business brought about a 1.5 percent gain on a constant currency basis. The Select Developed and Emerging Markets Businesses show the most marked decline—its net sales of $457.4 million represents an 11.7 percent decrease from 2014. The sector’s 2.9 percent sales increase on a constant currency basis, however, was a result of improved market demand in the Emerging Markets businesses.

On the sunnier side, in 2015 Dentsply achieved record adjusted earnings per share of $2.62, growing 5 percent overall, but almost 11 percent on a currency-neutral basis.

Apart from that, though, the main strategy for Dentsply to boost sales appears to be its merger with Sirona; its new product offerings and clearances for 2015 were somewhat light. The company launched the Captivate by NUPRO Tooth Whitening System in April, both an in-office and pre-filled, disposable take-home patient kit for professional whitening. In May, Dentsply Caulk launched its Calibra universal self-adhesive resin cement, allowing dentists a more effective and thorough cleanup due to a wide tack cure window of up to 10 seconds, and an extended 45 second gel phase. On the regulatory side, the company’s ProRoot MTA—a root repair material that creates a biocompatible seal to replace dental pulp and prevent infection—received U.S. Food and Drug Administration clearance in September for pediatric pulpectomies.

According to CEO Jeffrey Slovin, the merger with Sirona allows the company “to become the world’s largest manufacturer of professional dental products,” with a large, strong platform of more than 600 experienced scientists and engineers to “foster the development of better, safer, and faster dental care.” As with any merger, there are a number of risks to consider in order for Dentsply to pull out of its 2015 net sales decline and live up to that lofty goal. The company cleared the first hurdle—ensuring the merger continued successfully and without delay. Sirona stockholders had legally challenged the merger and sought injunctive relief to enjoin the defendants from completing the deal on the agreed-upon terms. On the opposite end, with the merger complete, substantial expenses will occur related to the integration of the two companies. Dilution to the combined company’s adjusted earnings per share may also occur—should the acquisition not be accretive—resulting in decreased market price of the combined company’s common stock. Finally, expanded operations following the merger must be effectively managed (including management challenges, new operations monitoring, and associated increased costs and complexity) or else future results may suffer.

$2.93 Billion
No. of Employees: 11,900

We’ve all heard the old saying “Put your money where your mouth is.” In the case of Dentsply Inc., it’s more like they’ve put their money where your mouth is. And indeed after a successful year like fiscal 2012, they’ve put quite a bit [of money, that is] in their pockets, too.  The York, Pa.-based provider of dental supplies, implants and related equipment had a busy year. The big news for fiscal 2012 was the formation of a new dental implants unit that included the company’s existing implant technology business (called Friadent) with assets of Sweden-based Astra Tech AB, the dental unit of drug giant AstraZeneca. Dentsply acquired the company in August 2011 for $1.8 billion, and claims the purchase makes it the third-largest maker of dental implants.  The new division, called Dentsply Implants, began selling in North America under that brand name in April 2012. The new company’s portfolio includes patient-specific implants, bone regenerative products, 3-D virtual surgical planning and surgical guides.
Dentsply officials expect the global dental market to grow in the low- to mid-single-digit range within the next few years, with a faster pace of growth in developing markets. Sector analysts have predicted that domestic growth may accelerate more than forecast as job growth improves in developed markets.

Dentsply’s specialty businesses—orthodontic, endodontic (instruments and systems) and implants—have grown from $700 million in 2006 to $1.3 billion in 2012 and account for approximately 48 percent of the company’s sales. The firm’s leadership attributes the increase to new product innovation, strategic acquisitions and “substantial” investments in clinical research and education. Prosthetic procedures were perhaps hardest hit by the global recession in 2009 and have been the slowest to recover, according to Dentsply executives and industry analysts. In particular, Beyond dental, consumable medical devices represent approximately 13 percent of the firm’s global sales. This division comprises consumables-based urology devices and catheters, surgical instruments, respiratory products and disposable surgical instruments. The business was rebranded in 2012 as Wellspect HealthCare from Astra Tech HealthCare, added in 2011 following the Astra Tech acquisition.

Dentsply’s consumables products division (dental supplies and small equipment used in dental offices for patient treatment) accounted for 28 percent of sales and dental lab products (used in the preparation of dental appliances by dental laboratories) were 11 percent of sales. Overall, net sales for 2012 (ended Dec. 31) were $2.9 billion, a 15.4 percent increase. Net income for the fiscal year was a record for the company at $314.2 million, or $2.18 per diluted share, compared with $244.5 million, or $1.70 per diluted share for 2011. Worldwide, organic growth accounted for 4 percent of sales increases in 2012. Acquisitions accounted for about 16.2 percent of growth. Excluding precious metal content, net sales by division were as follows (the sector breakdowns are how Dentsply reports its divisions’ performance): Dental Consumable and Laboratory Businesses sales were $792 million, a drop of 0.3 percent; sales for Orthodontics/Canada/Mexico/Japan increased 2.9 percent to $298 million; sales from Select Distribution Businesses dropped 1.3 percent to $288 million; and sales for the Implants/Endodontics/Healthcare/Pacific Rim sector were $1.34 billion, an increase of 39.4 percent.

Though the overall financial picture was mostly rosy for the company, little progress was made regarding a protracted legal scuffle. In September, a Pennsylvania federal judge refused to dismiss a putative class action accusing Dentsply of providing dental practices with faulty Cavitron ultrasonic teeth-cleaning tools, clearing the way for the case to proceed in the wake of the dismissal in 2011 of a related suit. Dentsply had argued in the motion for dismissal or summary judgment it filed in March 2010, roughly a month after periodontist plaintiffs filed suit, that the complaint should be dismissed because it duplicated litigation in another case filed in 2006. The lawsuit, filed in the U.S. District Court for Eastern Pennsylvania, alleges that the company failed to inform customers that the Cavitron system required an aseptic water source to prevent the biofilm growth within the device. “Beginning with the 2006 Cavitron models, Dentsply changed its instructions for the Cavitron, stating that Cavitrons should not be used where asepsis (the state of being free of pathogenic microorganisms) is required. It recommended, but did not require, the use of a bleach, sodium hypochlorite, in flushing the system periodically, which could only be accomplished by the purchase and use of additional equipment from Dentsply or another manufacturer,” according to court documents. “Dentsply did not, however, change its instructions or warnings to state that Cavitrons should not be connected to a public water system, and did not provide any warnings concerning the dangers of biofilm formation, its accumulation within the Cavitron’s internal and concealed waterlines, and the contamination of dental treatment water from bacterial pathogens in the biofilm.”

Dentsply has facilities throughout the United States, Belgium, Brazil, China, France, German, Italy, Japan, Mexico, the Netherlands, Poland, Puerto Rico, Sweden and Switzerland. Of the nearly 12,000 employees, nearly 3,500 are U.S. employees, while roughly 8,400 people work for the company at international locales.

$2.2 Billion
NO. OF EMPLOYEES: 9,300

Executives at Dentsply International Inc. call it “the upside of down.” The down, of course, was last year’s contraction of the global dental market—the first in recent memory—which led to lower demand for dental products, and ultimately, lower sales. The upside—at least to Dentsply bigwigs, anyway—was the opportunities created by the worldwide economic downturn.

“The [economic] conditions created opportunities for companies with a strong long-term focus, flexible management and adaptable cost structures. At Dentsply, we embraced this opportunity and created a balanced approach—reducing costs in a targeted manner, and continuing to make key investments to facilitate future growth,” Chairman and CEO Bret W. Wise and President and Chief Operating Officer Christopher T. Clark told shareholders in a letter within the company’s 2009 annual report.

“We gained global market share, strengthened the balance sheet and enhanced shareholder value in a very challenging market,” the pair continued. “Our strong cash flow and strong financial position will allow us to take full advantage of Dentsply’s tremendous upside potential and accelerate growth as worldwide markets rebound.”

Despite flat sales and decreases in both gross profit and net income last year, Dentsply positioned itself well (financially) to take advantage of a market rebound—if such a rebound indeed occurs. Operating income grew 0.2 percent (barely measurable, but an increase, nonetheless) to $381 million, while the company’s equity jumped 15 percent to $1.9 billion. Total assets broke the $3 billion barrier, rising 9 percent in 2009 (year ended Dec. 31) compared with 2008. Dentsply also reduced spending by 26 percent and increased its cash flows from operating activities to $362.4 million, an 8 percent rise compared with the $336 million in cash flows the company reported in 2008.

Dentsply’s cost-containing measures and investment strategies kept it fairly well-insulated against last year’s the contraction in the dental market. Total sales, excluding precious metal content (various precious metals are used to make the company’s implants, and the cost is included in the total price of the item) essentially was the same as last year’s record of $2 billion. Diluted earnings per share measured on a non-GAAP (Generally Accepted Accounting Principles) basis—excluding restructuring charges and other related items—came to $1.84, down just 2.1 percent compared to 2008’s record performance. Net income, meanwhile, fell 3 percent to $274.2 million.

Recent acquisitions contributed 4.5 percent to the year’s results, more than double the effect mergers had on 2008 sales. Executives said the company’s partnerships with dental material provider Zhermack SpA in Badia Polesine, Italy, and Belgian-based Materialise Dental, as well as the acquisition of Belgian-based ES Healthcare added $89 million to 2009 sales. “Acquisitions continue to be an important component of our growth strategy, and we intend to remain active in shaping the consolidation of the dental industry,” the company’s 2009 annual report stated.

Dentsply experienced sales increases in all parts of the world except the United States. Executives attributed the overall 0.9 percent decrease in U.S. revenue to lower sales of dental laboratory and non-dental products. European sales rose 4 percent, while sales in all other regions climbed 4.6 percent on strong demand for dental consumable devices and specialty products.

$2.2 Billion
NO. OF EMPLOYEES: 9,400

Despite extreme volatility in the foreign exchange markets throughout 2008 and the global economic downturn in the fourth quarter, officials at Dentsply remained bullish about the company’s performance and how it is positioned for 2009.

Their enthusiasm is well-founded. For fiscal 2008 (ended Dec. 31), overall sales increased 9.2 percent to $2.2 billion; sales excluding precious metal content were $2 billion, a 9.6 percent improvement over 2007. Diluted earnings per share, not taking into account restructuring charges and other related items, tax adjustments and certain other adjustments—reflected 13.3 percent growth. Net earnings for the year grew to $283.8 million from $259.6 million in 2007. The increase in sales for the year primarily resulted from strong growth in the specialty product areas of endodontics, implants and orthodontics. Acquisitions and favorable foreign exchange impacts also benefited sales growth for the full year, according to the company. Through its own internal research centers, as well as through its collaborations and partnerships with external research institutions and dental schools, Dentsply fueled new product development with an investment of approximately $52.3 million for 2008. As a result, the company on average releases approximately 20 new products a year.

Recent acquisitions contributed 2.1 percent to the year’s results, while organic growth was 3.8 percent. Dentsply’s leadership also attributed the results, in part, to the company’s “vast geographic footprint and the breadth and depth of our product offerings, which help to dissipate the impact of softness in individual markets.” Further expanding its global reach, Dentsply acquired a majority interest in Italy-based Zhermack (a producer of dental materials) in late 2008. It also purchased Belgium-based E.S. Healthcare, a manufacturer of dental laboratory products. Terms of the deals were not disclosed.

A total of 62 percent of sales, excluding precious metal content (a variety of precious metals are used to manufacture the company’s implants, and the cost is included in the total price of the implant), came from outside the United States. All six of the company’s franchises—preventive, orthodontic, restorative, endodontic, prosthetic and implant—reported increased sales. On a geographic basis, sales in Europe were particularly strong, officials noted, while developing markets such as China, India, the Middle East and Russia continued to grow rapidly.

Fiscal 2008 also brought a series of management promotions. Chris Clark was promoted to president, in addition to his previous role as chief operating officer. Clark has been with the company since 1992. Jim Mosch was elevated to executive vice president from senior vice president and general manager. Mosch continues his responsibilities for both manufacturing operations and selling organizations located in the United States, Europe, Australia, Brazil, Latin America and Mexico. Bert Sterkenburg was promoted to senior vice president. His new responsibilities include the company’s implant franchise, and he continues his operating responsibilities over both manufacturing operations and selling organizations located in the United States, Europe and Asia. Prior to this appointment, Sterkenburg served as vice president and general manger of the VDW division.

Looking at future performance, executives claim Dentsply’s business is less susceptible than other industries to general downturns in the economies in which it operates.

“Many of the products the company offers relate to dental procedures that are considered necessary by patients regardless of the economic environment. Dental specialty products and products that support discretionary dental procedures are the most susceptible to recessionary conditions,” according to the company’s most recent annual report.

Among the positive demographics, Dentsply’s leadership identifies an aging population as bolstering its continued growth (as well as other device sectors). Growth of the global population 65 or older is expected to nearly double by the year 2030. In addition to having significant needs for dental care, the elderly are well-positioned to pay for the required procedures since they control sizable amounts of discretionary income, according to the company. In addition, natural teeth are being retained longer, and individuals with natural teeth are much more likely to visit a dentist in a given year than those without any natural teeth remaining, company executives predict. In addition, dentistry in North America and Western Europe has been “transformed” from a profession primarily dealing with pain, infections and tooth decay to one with increased emphasis on preventive care and cosmetic dentistry.

Dentsply’s net sales in the first quarter of 2009 decreased 9.6 percent to $506.9 million compared to $560.8 million reported for the first quarter of 2008. The change in net sales, excluding precious metal content, was driven by currency translation, which reduced sales by 6.9 percent, according to the company.

“$2 Billion

KEY EXECUTIVES:

Bret W. Wise, Chairman, CEO and President
Christopher T, Clark, Exec. VP and COO
William R. Jellison, CFO and Senior VP
James G. Mosch, Operating Sr. VP
Robert J. Size, Operating Sr. VP
Andrew M. Lichkus, PhD, VP, Chief Technology Officer

NO. OF EMPLOYEES:

9,000

GLOBAL HEADQUARTERS:

York, PA

The company that strives to help keep smiles healthy had many reasons to grin in 2007—billions of them, in fact. In the past six years, Dentsply International Inc. has seen its net sales double from $1 billion to $2 billion last year. For the year, sales increased 11% compared with 2006, which had sales topping $1.8 billion. When excluding precious metal content from the figures, sales rose 12.1% to $1.8 billion in 2007. Net income was nearly $260 million, compared with approximately $224 million for 2006.

All the gains came in a time of transition for the company, which saw former Chairman and CEO Gary Kunkle Jr. retire at the end of 2006. Bret Wise, who took over the helm, knew Dentsply well, however, given that he had worked his way up from senior vice president and chief financial officer when he joined the company in 2002 and, before his most recent post, was serving under Kunkle as president and chief operating officer. Christopher Clark, formerly senior vice president, also moved up into his current position as executive vice president and chief operating officer.

Along with a new regime has come a renewed focus on strengthening organic growth and dedicated overseas resources. As part of the company’s strategy, nearly 60% of Dentsply’s sales came from overseas, with double-digit increases seen in areas such as Asia-Pacific, Canada, the Middle East and Australia. Europe contributed 39% of global sales. Given the international focus, the company expanded its 2,000-member global sales force during 2007. In the United States, Dentsply’s Strategic Partnership Program helped foster productive and profitable relationships with dealer partners and other customers. In all six of the continents in which the company does business, Dentsply’s clinical education program reached more than 160,000 dental professionals.

Dentsply poured more than $150 million into new technologies and acquisitions last year as part of its initiative to invest 75% of cash flow into organic growth and acquisitions. Particular attention has been paid toward emerging markets such as Eastern Europe, Latin America and Asia-Pacific. Five acquisitions were completed in 2007, expanding the company’s reach in areas such as Spain and Turkey as well as to solidify Dentsply’s presence in what it deemed previously underrepresented dentistry markets. In September, for example, Dentsply completed its acquisition of assets from Sultan Healthcare, Inc. These assets are expected to help Dentsply expand its product offerings in new categories such as infection control and add approximately $45 million to $50 million in annual sales for the company.

The largest portion of the firm’s product portfolio is comprised of orthodontics, endodontics and implants, all of which collectively contributed 40% of total sales for the year. Consumables contributed 38% of sales, while prosthetics added 19% to the total.

In 2007, Dentsply launched 35 new products. Among them was the GT Series X Rotary Files With M-Wire NiTi, used for reshaping procedures during root canals. The M-Wire nickel titanium technology was gained from Dentsply’s SportsWire acquisition in 2007. In this therapeutic category, VDW.Silver and VDW.Gold endodontic motors also were introduced during the year.

In terms of aesthetic treatments, Dentsply realized gains from its In-Ovation C ceramic, self-ligating bracket system launched in late 2006.

As with many companies seeking new material solutions for new generations of product offerings, Dentsply also went beyond the use of zirconia and titanium to fabricate DeguDent dental copings and bridge substructures fabricated from lower-cost non-precious metals using automated selective laser melting.

Looking ahead, the company already has posted growth of 18.6% in the first quarter of 2008 (compared with the same quarter a year ago), with sales at $560.8 million. Excluding precious metal content, sales were $496.2 million, a 17.6% increase from the prior year’s quarter. According to Wise, who presented the results during a recent earnings call to analysts, the growth represents Dentsply’s fastest quarterly expansion since the third quarter of 2002.

He acknowledged that economic conditions have slowed US sales of certain higher-end discretionary procedures but noted that overall sales in Europe and other overseas regions maintained strong growth rates in spite of the impact of currency fluctuations and other economic issues.

“Overall, we’re off to a strong start in 2008 for both sales growth and earnings growth. As we entered the year, we had taken some weakness in the US market into account when we gave our guidance for all of 2008 that was back at the beginning of February,” Wise said. “I think we have seen some of that weakness in the US develop, and it will probably take a few quarters for that to turn around. However, one of the key strengths of Dentsply is our diversity in both product categories and in our geographic coverage, and this quarter and throughout 2008, we expect that to be a key driver in our financial results.”

The executive team also pointed to the recent approval of new indications to extend Dentsply’s tissue care positioning for its Ankylos implant line in the United States; the indications, previously approved in Europe, have been “very effective” there, executives noted. In the first quarter, the company also introduced Midwest Carries ID, an updated caries detection device utilizing technology acquired last year. The orthodontic business also launched a new lingual minor tooth movement system called Innovation LMTM.”

$1.8 Billion
No. of Employees: 9,400

Reorganization is the name of the game for Dentsply, which had a turnaround year in 2006. After experiencing a net loss in 2005, the dental manufacturer set its sight on business collaborations and restructuring to enhance growth.

It will be interesting to see where the company is headed in the future, as Dentsply’s longtime chairman and CEO, Gary Kunkle, retired at the end of 2006. During his 10-year tenure, sales nearly tripled. Bret Wise, former president and COO of Dentsply, assumed the role of chairman and CEO on Jan. 1.

For 2006, net sales totaled $1.8 billion, a 5.6% rise from $1.72 billion reported in 2005. Net income was reported at $223.7 million. The overall growth in net sales was characterized by steady but unremarkable growth in each quarter of the fiscal year, ended Dec. 31, with percentage increases in the 4.8% to 6.2% range.

With a pivotal focus on specialty dental products, Dentsply has established itself in 22 nations on six continents. The US market contributed 42% of sales in 2006, with Europe following at 38%. Japan added 4% to sales and other parts of the world offered 16%.

Dentsply’s specialty product line—consisting of orthodontic, endodontic and dental implant products and materials—contributed the bulk of sales in 2006, at 40% of the share. Dental laboratory equipment added 22% to overall sales, and consumables (eg, impression and restorative materials, anesthetics, bonding agents, etc.) contributed 38%.

According to the company, Dentsply introduces approximately 25 new products each year. Among 2006 product launches were the Cercon Eye, a tabletop scanner for producing digital images of dental prosthetic devices; In-Ovation C, an orthodontic product that uses clear ceramic brackets with arch wire; Radica, a composite system in prosthetics; and XP Bond, which adheres light-cured restorative materials to enamel and dentine without priming.

In terms of the company’s other activities, the past year has been marked by major restructuring efforts as Dentsply continues to streamline operations and pursue growth.

In 2006, the US sales force for the consumables division was moved under a single sales organization, referred to as Dentsply North America. The company said this entity has become the largest combined sales force in the market and offers lead sharing, cross marketing and more efficient distribution.

In August, Dentsply sold its injectable anesthetic facility and equipment to Pierrel, a pharmaceutical contract manufacturing and drug development company based in Milan, Italy, for $19.5 million. As a result, Dentsply unveiled plans to outsource production of its injectable anesthetic line and partner with industry leaders in the anesthetic field.

One of Dentsply’s most significant moves in 2006 occurred when the company decided to consolidate its US distribution base during the third quarter. With this move, the company now partners with 28 key dealers that formerly were responsible for more than 90% of sales and growth. According to Dentsply officials, this move was made to form closer relationships with these dealers while improving collaboration.

Finally, toward the end of 2006, Dentsply combined its US implant and endodontic divisions into one unit.

Acquisitions also figured into the company’s long-term strategy. Last year, Dentsply acquired a 40% interest in Materialise Dental N.V. for its digital dentistry capabilities. In addition, Wise noted in the 2006 annual report that previous acquisitions of European company GAC SA and US-based Raintree Essix and Glenroe Technologies contributed strong growth for Dentsply that year.

Dentsply continues to embark on continued success, with first-quarter results for 2007 reflecting substantial financial growth. Net sales were up 9.7% to $472.9 million, an increase that has been attributed to the sale of specialty products such as implants, orthodontic products and the company’s all-ceramic Cercon products. All product lines experienced double-digit sales growth in the quarter ended March 31. Net income was reported at $58.5 million, up 22.6%.

$1.7 Billion ($41.3B Total)
No. of Employees: 8,000

Dentsply, a dental manufacturer that distributes its products to more than 120 countries, faced some major challenges in 2005. Net sales were flat, with a 1.2% increase, and the company’s true financial picture becomes clearer when looking at net income, which decreased by 82%, from $253,000 to a mere $45,000. Amid this news was the retirement of Thomas L. Whiting, Dentsply’s president and chief operating officer, in late 2005.

The reimbursement climate in Germany, the third largest dental market globally, changed dramatically in 2005 as patients incurred more personal cost from dental work and laboratory-based dental work diminished. The impact of this shift greatly affected Dentsply’s bottom line, as this country bears responsibility for 21% of the company’s revenue.

However, Chairman and CEO Gary Kunkle reported, “We are pleased to see an improvement in the German market during the first quarter [of 2006]. While we do not expect 2006 will return to 2004 levels in Germany, we do expect our European growth to benefit from improvements in this important region throughout most of 2006.”

To counterbalance some of the difficulties, Dentsply is striking back by accelerating investment in product R&D, with a major focus on dental restoration. The company has partnered with the Georgia Institute of Technology’s Dental Technology Center for several research activities, and a long-term collaborative agreement was formed with IDMoS Dental Systems Ltd. for commercialization of its cavity detection and monitoring technology. Furthermore, Dentsply continued its joint development agreement with Japanese company Two Cells Co. Ltd. for research on using neurotrophin (BDNF) for periodontal disease.

In keeping with Dentsply’s launch of 30+ products in 2005, the company continues to invest in other emerging technologies that are anticipated to pay off down the line. In one move, the company acquired rights to SATIF, an exclusive titanium-fluoride derivative from European pharmaceutical company Sanofi-Aventis. A dental varnish utilizing this technology may be available by 2008.

The company did have to make some tough strategic decisions last year. In a major move, Dentsply ended up shutting down its dental injectable anesthetic facility after considerably investing in this venture all throughout 2005 and the earlier part of 2006. The company reported that production of the injectable anesthetics would be outsourced after dealing with delays in regulatory approval for the facility. The closing of this facility is anticipated to help earnings in 2006 and slightly increase operating margin rates.

Another area in which the company made certain strides was the formation of a new sales organization, Dentsply North America, in late 2005 to combine field and sales management functions for six US distributor-based businesses.

Finally, the company has continued acquired three new orthodontic companies: GAC SA in Europe, and Raintree Essix and Glenroe Technologies in the United States. These companies contributed 1.4% to 2005 revenue and are expected to perform even better in 2006.

If first quarter 2006 results are any indication, all the changes and investments are slowly starting to pay off. As of March 31, net sales already increased 5.9% over the prior year, from $407 million to $431 million. In addition, net sales (excluding precious metal content) were up 3.9%. Much of this good news is attributable to stronger growth in the European market, though the stronger US dollar somewhat tempered momentum.

“We are also experiencing continued strong performance in the all-ceramic section of our prosthetics business, orthodontics and our implant businesses, as we continue to gain market share in these important categories,” Kunkle said.