07.22.21
Rank: #28 (Last year: #26)
$3.34 Billion
Prior Fiscal: $4.02 Billion
Percentage Change: -17%
No. of Employees: 5,100
Global Headquarters: Charlotte, N.C.
KEY EXECUTIVES:
Eric Brandt, Chairman of the Board
Donald M. Casey Jr., CEO
Chidam Chidambaram, Sr. VP, Chief Digital Officer
Matthew Coggin, Sr. VP, Chief Strategy and Business Development Officer
Keith Ebling, Exec. VP, General Counsel and Secretary
Jorge Gomez, Exec. VP and CFO
Dan Key, Chief Supply Chain Officer
Walter Petersohn, Chief Commercial Officer
Cord F. Staehler, Sr. VP Digital Platforms & Solutions, Chief Technology Officer
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.”
$3.34 Billion
Prior Fiscal: $4.02 Billion
Percentage Change: -17%
No. of Employees: 5,100
Global Headquarters: Charlotte, N.C.
KEY EXECUTIVES:
Eric Brandt, Chairman of the Board
Donald M. Casey Jr., CEO
Chidam Chidambaram, Sr. VP, Chief Digital Officer
Matthew Coggin, Sr. VP, Chief Strategy and Business Development Officer
Keith Ebling, Exec. VP, General Counsel and Secretary
Jorge Gomez, Exec. VP and CFO
Dan Key, Chief Supply Chain Officer
Walter Petersohn, Chief Commercial Officer
Cord F. Staehler, Sr. VP Digital Platforms & Solutions, Chief Technology Officer
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.”