Financial Markets Research: Sirona Dental Systems

Summary

Introduction

Digital imaging products and CEREC form the basis for growth for Sirona Dental Systems, while accounting for nearly two-thirds of revenues, and will therefore be essential to the newly formed combination of Schick Technologies and Sirona.

Highlights

The 'new' Sirona Dental Systems will be heavily dependent on its CEREC esthetics system and its digital radiography products to drive annual growth. However, we expect significant challenges to continued revenue growth.We expect the ongoing conversion from traditional x-rays to digital imaging to be rapid and extensive, but competition is on the rise.Despite a strong reputation, the high cost of CEREC is a significant impediment to low-volume practices, or those practices that are not 'cutting edge'.

Scope

• Analyzes the market outlook for Sirona's digital imaging and CEREC technologies, two high end dental technologies
• Datamonitor interviewed seven dentists, including four opinion leaders, in the course of research

Reasons to Purchase

• Predict the commercial potential for Sirona Dental Systems and its key technologies through in-depth analysis based on interviews with leading experts
• Anticipate likely changes in the future market dynamics for dental imaging technologies caused by the merger of Sirona and Schick Technologies

Contents

• Likely struggle for impressive annual growth despite strong reputation and technology
• Schick Technologies And Sirona Dental Systems
• Schick - Sirona merger
• Merger to lead to brand enhancement
• Cerec (Chair-Side Economical Restoration Of Esthetic Ceramics)
• Overview
• Dentists cannot get past the price of CEREC, despite its advantages
• Despite positive impressions and improved software, price is the deciding factor
• Some dentists not convinced of quality of restorations from CEREC
• With price and other concerns, penetration potential is limited
• Evolution4D to provide more options to dentists, but CEREC has history on its side
• Cerec Penetration Would Increase Significantly With Lowered Price
• Cerec Forecasts
• Digital Dental Imaging
• Overview
• Advantages of digital radiography well understood
• Schick Tech a leader in digital radiography, but competition is increasing
• Over 20% of dental practices have gone digital
• Users heap praise upon digital radiography; expect high penetration
• Siro Likely To Lose Market Share But Still Gain From Tremendous Digital Growth
• Impact of digital panoramic systems may provide additional upside
• Siro Digital Radiography Forecasts
• Appendix
  • Datamonitor Healthcare
  • Disclosure information
  • Ask the analyst
• List of Tables
  • Table 1: CEREC forecasts and growth, 2004-2010
  • Table 2: SIRO digital radiography forecasts, 2005-2010