Dental Market Watch - January 2024

As the dental industry embarks on a new year, January 2024 marks the beginning of transformative trends and pivotal updates that are shaping the future of dentistry. From technological innovations and digital advancements to strategic investments, this month has already unveiled key market developments. This article aims to distill these significant updates, offering insights into the evolving landscape of the dental sector. Stay tuned for a comprehensive analysis of the latest trends and predictions that are setting the tone for the year ahead in the dental market.

Market Trends 

Christie & Co Business Outlook 2024 - Positive Outlook: Despite challenges like cost inflation, rising interest rates, and workforce issues, a positive long-term outlook for the dental market is maintained, with a resurgence in the independent dental market in late 2023. 68% among dental professionals expressing optimism and a keen interest in buying or selling practices.

Trends in Digital Dentistry for 2024: The dental industry is undergoing significant transformation with advancements in generative AI for diagnostics and treatments, and the widespread adoption of intraoral scanners. Developments in 3D printing resins are revolutionizing dental restorations, while the demand for digital consumer experiences and cloud computing is enhancing patient-dentist interactions and enabling remote management of dental tasks. 

2023 CAQH Index Report: A 50% increase in healthcare administration costs due to staffing shortages, hybrid work, cyber threats, and AI, despite automation saving costs. Potential annual savings of $18.3 billion through further automation and process improvements in medical and dental transactions.

Dental Industry Predictions for 2024: The dental sector is navigating challenges in staffing and high overhead costs, prompting a push for technology-driven efficiency and operational improvements. Concurrently, there's a trend towards technological investments to boost practice operations. The industry is also seeing a shift towards larger group practices and DSO affiliations, especially among younger dentists, indicating evolving practice preferences and the sector's dynamic nature.

The PepperPointe Perspective: The dental industry is witnessing a significant shift towards Dental Support Organizations (DSOs), fueled by private equity, alongside changing demographics with an increasing number of dental school graduates preferring DSO-supported practices.

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Advancements in 3D Printing Technology

Align Technology's acquisition of Cubicure: Enhancing direct printing capabilities for clear aligners and introducing innovative Hot Lithography technology for producing strong, temperature-resistant polymers.

The partnership between Eplus3D and Scheftner GmbH: Aiming to merge hardware expertise with medical-grade metal powder development to elevate dental manufacturing quality and safety.

Formlabs' introduction of new innovations: Such as a resin pumping system and new materials like polypropylene powder and premium teeth resin, to expand the versatility and efficiency of its 3D printing ecosystem.

Investments 

Neocis' $20M Funding: Neocis has received $20 million in additional funding to enhance its Yomi robotic surgical system, indicating the transformative potential of dental robotics in improving the precision and efficiency of implant dentistry. This investment reflects confidence in Neocis' ability to innovate and expand in the dental robotics market.

Straumann Group's Expansion in Costa Rica: With a $1.4 million investment, Straumann Group is establishing a regional distribution center and customer service office in Costa Rica. This strategic move is expected to create 200 jobs, capitalizing on Costa Rica's skilled workforce and its status as a key dental implant market in Central America, aiming to elevate regional dental care standards.

Peerlogic's $5.65M AI Technology Funding: Peerlogic has secured $5.65 million in funding to grow its AI-driven conversational intelligence platform for dental offices. This technology enhances patient care and office efficiency by analyzing call data to identify and leverage missed opportunities, showing significant growth and positioning Peerlogic as a frontrunner in incorporating AI into dental practice management.

Recent Innovations & Product Updates

Align Technology's iTero Lumina™: The iTero Lumina™ intraoral scanner introduces iTero Multi-Direct Capture™ technology, offering a wider field of capture with a significantly smaller wand, improving scan accuracy and speed.

Condor Technologies' Tray-Based Dental Scanner: Developed with Invis’Art, Condor Technologies' tray-based dental scanner aims to streamline digital dental impressions, promising a game-changer in direct in-mouth scanning.

Vivos Therapeutics' FDA Clearance: Following the FDA 510(k) clearance for its CARE oral appliances for severe obstructive sleep apnea (OSA) treatment, Vivos Therapeutics reported a significant uptick in dentist inquiries and sales pipeline growth.

Amann Girrbach's Ceramill Matron: As the market's first fifth-generation milling machine, it sets new standards in dental CAD/CAM technology with features that enhance productivity and precision in dental material processing.

Calcivis' Preventive Dental Imaging Technology: This novel imaging system for the early detection and management of dental caries represents a significant advancement in preventive dental care, with Calcivis expanding its presence in the U.S. market.

Swissmeda's Digital Denture and Cloud Imaging Solutions: The introduction of the Easy Digital Denture Solution (EDDS) and a cloud-based imaging system marks significant progress in digitizing denture processes and streamlining dental practice operations through cloud technology.

Financial Developments 

Align Technology's Fiscal Achievements: Align Technology showcased a 6.1% increase in Q4 revenues year-over-year, with fiscal year 2023 revenues up by 3.4%, totaling $3.9 billion. Notable milestones include reaching 17 million Invisalign® patients, 4 million Vivera™ retainers sold, and over 100 thousand iTero™ scanner units distributed. Additionally, the company has made strategic investments, including repurchasing $600 million of its common stock and launching the iTero Lumina™ with advanced scanning capabilities.

MB2 Dental's Expansion: MB2 Dental has seen significant growth, adding 163 practices to its network, resulting in a total of 663 practices. This expansion includes 150 new partnerships and 13 de novo locations. MB2 Dental also introduced Cerebro, an intranet platform, and Inside Desk, a revenue cycle management platform, alongside collaborations with leading dental AI companies to improve patient care.

Planet DDS's Exceptional Growth and Innovation: Planet DDS reported a transformative year with a 53% year-over-year growth in revenue, driven by strategic acquisitions like Cloud 9 and expanding its customer base by over 5,000 new locations. The company now manages 1 billion images and over 1,256 terabytes of customer data, supporting over $7 billion in production for more than 75 million patients. Innovations include launching Denticon Pay and Denticon Practice Analytics, integrated solutions that streamline payment processes and provide actionable data insights for dental practice management.

BIOLASE Reports Unaudited Revenue for 2023: Expecting a 1% growth over 2022 with revenues between $48.9 and $49.2 million. BIOLASE aims to capitalize on the dental laser market opportunity with a year-end cash balance of $6.6 million and plans to achieve its 2024 sales and profitability goals through operational optimization and expense management. For 2024, BIOLASE aims to grow revenue by 6-8%, improve operational losses by 50-60%, and expand its DSO customer base. The company reduced its workforce by 15% in January 2024 for cost savings of approximately $2.5 million and plans to report its full-year 2023 financial results in March 2024.

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