U.S. markets closed
  • S&P 500

    4,136.48
    -43.28 (-1.04%)
     
  • Dow 30

    33,926.01
    -127.93 (-0.38%)
     
  • Nasdaq

    12,006.96
    -193.86 (-1.59%)
     
  • Russell 2000

    1,985.53
    -15.69 (-0.78%)
     
  • Crude Oil

    73.23
    -2.65 (-3.49%)
     
  • Gold

    1,877.70
    -53.10 (-2.75%)
     
  • Silver

    22.40
    -1.22 (-5.17%)
     
  • EUR/USD

    1.0798
    -0.0113 (-1.04%)
     
  • 10-Yr Bond

    3.5320
    +0.1360 (+4.00%)
     
  • GBP/USD

    1.2056
    -0.0173 (-1.41%)
     
  • USD/JPY

    131.1500
    +2.5460 (+1.98%)
     
  • BTC-USD

    23,006.89
    -427.25 (-1.82%)
     
  • CMC Crypto 200

    535.42
    -1.43 (-0.27%)
     
  • FTSE 100

    7,901.80
    +81.64 (+1.04%)
     
  • Nikkei 225

    27,509.46
    +107.41 (+0.39%)
     

Henry Schein (HSIC) Expands Dental Offerings With New Pact

Henry Schein Inc. HSIC recently entered into a definitive agreement to acquire a majority ownership position in Biotech Dental. The acquisition aims to expand Henry Schein’s offering in several fast-growing product segments including clinical software and oral surgery and orthodontic products.

For investors’ note, Biotech Dental is a rapidly-growing provider of innovative clinical software and oral surgery and orthodontic products based in Salon-de-Provence, France

Transaction Details

Pending regulatory approvals, this transaction is expected to be slightly dilutive to 2023 earnings per share, excluding amortization. The dilution is mainly due to non-cash acquisition accounting adjustments for inventory. However, the financial terms of the deal were kept under wraps.

It is to be noted that Biotech Dental will continue to maintain its own brands and go-to-market strategies.

More on the News

Biotech Dental has a comprehensive range of solutions. These include Nemotec — an integrated suite of planning and diagnostic software that connects disparate devices to create a digital view of the patient’s oral health condition, Smilers brand of clear aligners and LaGalaxy — a complete, open and secure software platform where clinical and administrative tasks can be performed.

With these wide-ranging solutions, dentists and dental laboratories can take advantage of end-to-end integrated digital solutions within a single platform that help enhance case outcomes.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Biotech Dental’s business expertise and Henry Schein will support customers to enhance their surgical skills, achieve better patient outcomes and maximize business success.

Strategic Implications

Per management, Henry Schein will integrate Biotech’s Nemotec software as part of its solutions offering over time. It will include integrating Biotech’s software solutions with Henry Schein One’s practice management software solutions to develop an end-to-end clinical system and help dental practitioners streamline their clinical and administrative workflow.

The recent investment by Henry Schein is aligned to bring Biotech Dental’s full line of high-quality software, products, and services, including dental prostheses, clear aligners, dental implants, regenerative solutions, and biomaterials, to more dentists and dental laboratories as well as new geographies.

Industry Prospects

Per a report by Grand View Research, the global dental services market size was $359.5 billion in 2021 and is expected to expand at a CAGR of 4.4% by 2030.  The growing awareness about dentistry among people, the rising prevalence of dental caries & other periodontal diseases, technological developments in dentistry and the high demand for cosmetic & laser dentistry are the factors driving the market.

Recent Developments

In November 2021, Henry Schein One, a joint venture of Henry Schein, launched Dentrix Detect AI-powered and manufactured by VideaHealth -- an AI-enabled X-Ray analysis tool that integrates directly into Dentrix Practice Management Systems.

In the same month, Henry Schein Medical, the U.S. medical business of Henry Schein, expanded its SolutionsHub with Rimidi — a SaaS company that brings together remote patient monitoring tools, patient-reported outcomes and clinical decision support to help clinicians enhance patient care.

Price Performance

Shares of the company have gained 10.7% in a year against the industry’s fall of 10.1%.

Zacks Rank and Key Picks

Currently, Henry Schein carries a Zacks Rank #3 (Hold).

A few other better-ranked stocks in the broader medical space that investors can consider are ShockWave Medical, Inc. SWAV, Orthofix Medical Inc. OFIX and Merit Medical System MMSI.

ShockWave Medical, sporting a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 33.1% for 2023. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.

ShockWave Medical has outperformed its industry in the past year. SWAV has gained 35% against the industry’s 32.6% fall in the past year.

Orthofix Medical, currently carrying a Zacks Rank #1 (Strong Buy), reported third-quarter 2022 adjusted EPS of 13 cents, which beat the Zacks Consensus Estimate by a stupendous 550%. Revenues of $114 million outpaced the consensus mark by 2.7%.

Orthofix Medical has an estimated next-year growth rate of 58.97%. MMSI’s earnings surpassed estimates in the trailing three quarters and missed in one, the average being 129.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Merit Medical, currently carrying a Zacks Rank of 2, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.

Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ORTHOFIX MEDICAL INC. (OFIX) : Free Stock Analysis Report

Henry Schein, Inc. (HSIC) : Free Stock Analysis Report

Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report

ShockWave Medical, Inc. (SWAV) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research