US Implant Market TrendsUS Implant Market Trends

Louis F. Rose, DDS, MD.Louis F. Rose, DDS, MD.

TopicsTopics

What is a dental implant?

Present state of implant dentistry

Implant market trends

Nobel Biocare future plans

What Is A Dental Implant?What Is A Dental Implant?

Replace multiple missing teeth

Replace an edentulous arch

Dental implants are used to:

Revolutionary and unique, NobelActive™ Internal and External implants

Pre Op

Post Op

• There is a clear benefit to receiving dental implants

• Quality of life improves

• Diet and nutrition are positively impacted

• Positive impact on leisure activities

• Disadvantage of cutting down perfectly healthy teeth

G.Heydecke, J.M.Thomason, J.Lund, J. Feinc, Journal of Dentistry, 854-13/2/2005

Implant vs Conventional Bridges vs. Removable Dentures

Implant vs Conventional Bridges vs. Removable Dentures

• The industry has seen dramatic growth over the past 5 years

• However, the number of GPs treatment planning for implants has not increased at the same rate

• The economy has had a negative impact on case acceptance of the larger cases

• Uncertainty with the future value of one’s home• Uncertainty with the economic outlook

Present State of Implant DentistryPresent State of Implant Dentistry

• With a decline in growth, clinicians are looking for ways to maintain practice profitability

• Huge increase in the number of low cost dental implant suppliers

• The dental schools have responded by adding implant treatment to the pre-doctoral programs

• New clinical delivery models are emerging

What Is The Impact?What Is The Impact?

• There has been a huge increase in low cost suppliers over the past couple of years

• With slowing growth of the implant market, they offer the clinician a short term practice profitability opportunity

• The question remains whether they will be able to offer the scientific data and support necessary to maintain clinician relationships

Low Cost SuppliersLow Cost Suppliers

• Centers optimized for dental implant procedures• No other traditional or specialty dental services are provided

• Rely upon direct-to-consumer advertising to attract patients

• Tap into a market demographic not currently touched by the referral system

• 50% of their patients are reported to have not visited their dentist in the past 10 years

Dental Implant CentersDental Implant Centers

• The consolidation of private dental practices into the large group organizations is an ongoing trend

• Driven by insurance coverage

• Dramatically increases the number of patients who will be offered implants

Large Practice GroupsLarge Practice Groups

• By 2010 approximately 100 million Americans will be missing one or more teeth

• 36 million of them will be edentulous in one or both arches

Sources: Chester W. Douglass, DMD, PhD, et al, “The Journal of Prosthetic Dentistry,” January 2002; American Dental Association, 2006

Implant Market TrendsImplant Market Trends

Today’s Consumers Have:

The Pace of Change In The World Is Accelerating Rapidly

The Pace of Change In The World Is Accelerating Rapidly

• Higher expectations

• More information

• More choices

•More influence on the types of products and

services provided to them

Consider:

Impact of Change To Those Who Ignore ItImpact of Change To Those Who Ignore It

Rolling Stone Magazine, 2005; Reuters, May 2007

• Based upon a shift to online music, 48 million

fewer albums were purchased in 2005 than in

2004

• Sales declined 16% more in 2006

• The 75% of GPs who are not treatment planning for implants will be pressured to do so

• New graduates will be treatment planning• The large GP groups will be treatment planning• Consumers will be better educated

• Value-added services will become important to support these new trends

Breaking The LogjamBreaking The Logjam

Trends Affecting The Implant IndustryTrends Affecting The Implant Industry

Education and Research

Patient Friendly Procedures

Generational Changes

Direct to Consumer Advertising

• Dental school graduates are increasing to over 4000 a year

• Implants are taught as the standard of care

• Over 25% of GPs now treatment plan for implants

• By 2012 this figure is expected to increase by 35%

iData Research Inc. July 2007

Education And ResearchEducation And Research

Patients want:

Patient Friendly ProceduresPatient Friendly Procedures

Fast procedures

Minimally invasive procedures

Long lasting results

Good esthetics

• Transition from 2-stage to 1-stage procedures

• Immediate load implants

• Less invasive dental implant therapy

• Tilted implants, guided flapless surgery

• Advances in ceramic materials create a shift from

function to esthetics

Doctor Friendly ProceduresDoctor Friendly Procedures

• Major transition in the patient base

• 87 million baby boomers- turned 60 in 2006

• This generation is the major purchaser of elective

plastic surgery procedures and anti-aging remedies

• Baby boomers will inherit the largest inflation-

adjusted transfer of wealth in the history of man ($10

trillion)

Generational TrendsGenerational Trends

Business Week, Oct. 24, 2005;American Society of Plastic Surgeons, Business Week, March 18, 2005; www.genpolicy.com

• Medical, pharmaceutical and now dental advertising

is on the increase

• Consumer awareness of dental implants is increasing

• Patients seek more information regarding treatment

Direct To Consumer AdvertisingDirect To Consumer Advertising

• New CEO, Domenico Scala

• Straight shooter

• Transparent to the investment community

• His philosophy is to provide information, so people

understand what Nobel Biocare is doing and thus can

make good investment decisions

Nobel BiocareNobel Biocare

• Nobel Biocare will seek growth in the future by

driving the fundamentals upon which the company

was established

• Their products are based on solid scientific data

Nobel BiocareNobel Biocare

Educating general dentists to treatment

plan for implants, rather than surgically

placing implants

Growth Will Come FromGrowth Will Come From

• To develop relationships with general dentists

through the Procera restorative products on natural

teeth, e.g. porcelain

• Once the relationships are developed, the objective

will be to educate, train and move the general

dentists toward restorative implant dentistry

Nobel Biocare’s Focus Will BeNobel Biocare’s Focus Will Be

• Trends have emerged, which will accelerate the rate at which GPs get involved with treatment planning for implants

• Although the temporary slow down in growth has enabled the low cost suppliers to emerge, these trends will favor the value-added dental implant suppliers going forward

• Growth will be further fueled by an increase in consumer awareness

• With the supply side (clinical delivery) opening up, the strong growth seen in recent years should return…even making a weaker economy irrelevant

ConclusionsConclusions

Thank You!Thank You!