07.20.22
Rank: #26 (Last year: #28)
$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
Global Headquarters: Charlotte, N.C.
KEY EXECUTIVES:
John Groetelaars, Interim CEO
Barbara Bodem, EVP and CFO
Andreas Frank, EVP Product Group
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.
$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
Global Headquarters: Charlotte, N.C.
KEY EXECUTIVES:
John Groetelaars, Interim CEO
Barbara Bodem, EVP and CFO
Andreas Frank, EVP Product Group
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.