Straumann achieves growth of 3% in local currencies in first quarter of 2010 

  • Growth driven by implant volumes and lifted by new products
  • Strong performance in North America; Europe solid;strong expansion in ‘Rest of the World’ region
  • Guided surgery and intra-oral scanning launched
  • Digital Solutions, including new CADCAM system, presented
  • Highly successful ITI World Symposium attracts 4000 participants
  • Full-year guidance unchanged: above-market growth with operating profit margin at least in line with 2009 level

 

 

Net revenues

 

 

 

 

 

First quarter 2010

 

 

 

 

(in CHF million)

2010

2009

Change

in CHF

Change

 in l.c.

Group net revenue

199.2

196.4

1.5%

3.1%

 

 

 

 

 

Europe

125.0

125.2

(0.2%)

1.4%

in % of Group net revenue

62.7%

63.8%

 

 

North America

41.6

40.2

3.6%

8.4%

in % of Group net revenue

20.9%

20.5%

 

 

Asia/Pacific

25.5

25.6

(0.5%)

(1.7%)

in % of Group net revenue

12.8%

13.0%

 

 

Rest of the World

7.1

5.3

33.6%

26.3%

in % of Group net revenue

3.6%

2.7%

 

 

 

 

Basel, 27 April 2010: Straumann today reported first-quarter revenue growth in a market that has been subdued by the difficult economic environment. Group net revenue reached CHF 199 million, representing a 3% increase in local currencies (l.c.). The strength of the Swiss franc against the US dollar and the Euro contributed to a negative currency effect of nearly 2% points, with the result that net revenues in Swiss francs increased by almost 2%. Growth was entirely organic and the performance was in line with the Group’s forecast. The Group is thus maintaining its expectation to outperform the market again in 2010.

 

Straumann’s newly appointed President & CEO, Beat Spalinger commented: “We have made a good start to the year and have delivered growth in line with our expectations. Our strong launch program for the current year and the very positive customer responses at major dental meetings endorse our confidence for 2010, although we continue to be cautious about when and how quickly sustainable economic recovery will come”.

 

REVENUE DEVELOPMENT

 

First-quarter growth was driven by an increase in the volume of implants sold, with additional impetus coming from new products – namely Roxolid® and Straumann® Allograft – and CADCAM prosthetics. As the number of selling days in the period under review was the same as in the prior year, there were no seasonal effects.

 

Little improvement has been seen in the European dental specialty markets as unemployment and consumer confidence are still far from pre-recession levels. In spite of this, Straumann’s net revenue in Europe grew by 1% in local currencies to CHF 125 million. Most subsidiaries posted first-quarter revenues in line with prior year levels, including Germany, the largest market in the region. France continued to grow strongly, while Sweden fell some way short of the exceptionally high level of sales reported in the first quarter of 2009, when an extension to reimbursement stimulated market growth. The Iberian market showed encouraging signs of a turnaround as revenues climbed above the previous year’s low level.

 

In North America, where the current economic crisis was experienced early, Straumann reported another encouraging quarter as regional net revenue rose 8% in local currencies. Revenue increases were driven by strong demand for implants and sales of regenerative products including Straumann Allograft, which was launched recently. Owing to currency headwind, growth in Swiss francs amounted to 4%. With revenues reaching CHF 42 million, North America contributed 21% of Group net revenue.

 

The Asia/Pacific region contributed 13%, or CHF 25 million, to Group net revenue. This was 2% off the comparative level of 2009 in local currencies but flat in Swiss francs. Straumann continued to post very strong growth in China and saw positive developments in Korea. Both of these markets benefited from the recent introduction of SLActive and the Bone Level implant range. However, the good result was dampened by the large Japanese market, where the Group continues to compete without its new generation products.

 

Net revenue in the Rest of the World jumped 26% in local currencies (34% in Swiss francs), driven by strong performances in Brazil, Mexico and Middle Eastern countries. With net revenue reaching CHF 7 million, the region contributed 4% to the Group total.

 

INNOVATION AND CLINICAL EXCELLENCE

 

Straumann Digital solutions

At several key dental meetings, the Group presented an array of integrated computer-based technologies under the new umbrella brand of ‘Straumann Digital Solutions’. Straumann offers state-of-the-art computer-guided surgery, intra-oral scanning, and CADCAM prosthetics to specialists, generalists and labs. The Group is the only leading manufacturer in implant, restorative and regenerative dentistry to offer all these services with seamless connectivity.

 

Computer guided surgery

The Group’s guided surgery system, which was acquired in 2009, was launched under the Straumann brand in Austria, Germany and Switzerland. Multiple new features have been added and the international roll-out is in progress.

 

Powerful intra-oral scanning

In the first quarter, Straumann began selling iTero intra-oral scanners in Europe as part of an exclusive regional distribution agreement with Cadent. Intra-oral scanning obviates the less precise process of conventional impression-taking by enabling the dentist to create a chair-side 3D image of the patient’s teeth using an optical scanner inside the mouth.

 

New CADCAM connectivity and functionality

Also in the first quarter, the Group released a further upgrade of its CADCAM software (5.0 IO), which includes a number of new features that improve workflows and functionality. Most importantly, it connects the iTero intra-oral scanning system with Straumann CADCAM.

 

Ultimate prosthetics

At several major dental meetings, Straumann also presented its new CADCAM system 6.0, including a new in-lab scanner, which is scheduled to launch by year-end. The new CADCAM offering will incorporate tooth-borne (inlays, onlays, etc.) and implant-borne restoration options (screw-retained bridges etc.).

 

Thus, Straumann will be able to offer a complete replacement tooth in conjunction with an integrated state-of-the-art digital system of solutions to support implant placement, restoration and lasting esthetic performance.

 

ITI World Symposium

The 2010 World Symposium of Straumann’s academic partner, the International Team for Implantology, was held in Geneva in April and exceeded expectations by attracting more than 4000 participants. This not only positions the Symposium as a leading scientific and educational meeting in the field, it also demonstrates the continued strong expansion of the ITI network. The clinical research presented included impressive long-term data on Straumann SLA implants. The results come from the first randomized controlled clinical trial to report 10-year data1 on a currently available screw-type dental implant with roughened surface technology.

 

At the Straumann exhibition stand, great interest was shown in Straumann’s innovative PEG membrane for guided bone regeneration, which complements the company’s regenerative range and is on track for full launch towards the end of this year.

 

Outlook (barring unforeseen circumstances)

With continuing uncertainty in the global economy, Straumann remains cautious about forecasting when sustainable, underlying growth will return to the market in which it operates. The Group assumes that this market will be either flat or will grow in the low-single-digit range in 2010.

 

Based on its clinically-proven innovative products, organizational strength, market presence, and differentiated services, the Group is convinced that it can deliver above-market performance. With the goal of simply doing more for customers and patients in 2010, it will continue to invest in all its business franchises, its innovation pipeline, and its marketing and sales organizations to create superior treatment solutions and services.

 

Taking this into account and assuming that there will be further currency headwind in 2010, the Group expects to achieve net revenue in Swiss francs and an operating margin at least in line with the 2009 levels.

 

1 K. Fischer: ‘10-year outcome of SLA implants in the edentulous maxilla'; presented at the ITI World Symposium in Geneva, Switzerland, April 2010