Initial Report March 22, 2007
Remedent, Inc. (OTCBB: REMI) strives to be a world leader in the research
and development, manufacturing and marketing of oral care and cosmetic
dentistry products. Remedent’s products are renowned for their technological
superiority and ease-of-use.
Introduction Symbol REMI
Industry Cosmetic Dentistry
Remedent Inc. is a top class manufacturer and
Market OTC Bulletin Board
distributor of cosmetic dentistry products, including
a full line of professional dental and retail “Over-The- Recent Price $ 1.60
Counter” tooth whitening products. 52-Week Price Range $ 0.95 - $ 2.75
The Company manufactures many of its products in Market Cap approx. $ 19.35 million
its facility in Deurle, Belgium as well as in China.
Distribution of their products is done using both its Remedent Inc.
own internal sales force and through the use of third
party distributors. Products are shipped to Europe, Xavier de Cocklaan 42
Asia and the United States. 9831 Deurle - Belgium
Phone +32 9 3217080
According to an American Academy of Cosmetic
Dentistry (AACD) survey people are increasingly http://www.remedent.be
undergoing cosmetic dental procedures to help them
look and feel their best. 70.2% of those inquiring
about cosmetic dentistry are not ‘the young and the
beautiful’ or even ‘baby boomers’ with disposable
income. They are everyone in-between 31 and 50 year enormous market can be conquered.
olds. That means they’re people in the workforce or
stay-at-home parents who just want to look and feel In our view, a number of new and upcoming products
better for themselves, and by association, their jobs will propel REMI’s stock to higher levels. Glamsmile,
and personal lives.
for instance, is likely to set of a revolution in the veneer
business. It is a radical improvement compared with
In the same survey, 48.3% of dental practices
reported annual cosmetic dentistry revenue of more traditional veneers as the product is user-friendly for
than $700,000, with an average of $661,000. At both dentist and patient and is relatively inexpensive.
the same time, a third of all practices reported they We believe Remedent has positioned itself as a force
have more than 2,000 active patients who spend on to be reckoned with in a strong growing oral care
average more than $400 per visit. This means an market. As more people realize that a bright, white
Company Report - Remedent Inc. - 1
smile has a tremendous impact on perceptions of one’s and its range of in-office whitening gels and the
attractiveness and one’s personality. Metatray system that can be used both for in-office
and home whitening treatments.
Tooth Whitening Procedure
Beginning in 2002, the Company’s focus was on the
Each tooth is made up of an inner dentin layer and needs of the professional dentist market in Western
a hard outer enamel layer. By eating, drinking or Europe. Leveraging their knowledge of regulatory
smoking another layer of foreign material gradually requirements regarding dental products in each market
accumulates, to form a thin film over the enamel and the management’s experience in understanding
layer. the needs of the professional dental community,
development was completed on the RemeCure plasma
A dentist can clean this film away through scraping curing light.
and chemical treatments. Even brushing your teeth
can remove some of it. The problem is however, The key differentiating advantages built into the
enamel is porous. This means staining agents don’t RemeCure light were the ability to have a single
just form a film on top of each tooth, they can also device utilized for two applications: (1) curing dental
work their way down into the enamel, where they composite materials in only seconds and; (2) for
can’t be scoured away anymore. single appointment, in-office whitening in less than
This is where true tooth whiteners come in.
Leveraging on the early success with the RemeCure
Basically, there are two main methods of bleaching. light, the Company introduced the RemeWhite In Office
The first involves applying a high concentration of Whitening System. This advanced whitening product
bleaching agent* for a short period of time, which is contains the profession’s highest concentration of
the so-called office bleach. This treatment produces bleaching agent, yet is so gentle it causes no burning
quick results. The bleaching gel typically contains up or sensitivity and gingival protection is not required.
to 35% hydrogen peroxide equivalent.
The alternative method involves using a thin mouth
tray or strip to hold a low concentration of bleaching
agent next to the teeth for as long as several hours a
day for a period of 5 to 14 days. This is a slower process
and is done at home. The bleaching agent is typically
less than 10% hydrogen peroxide equivalent.
* The bleaching agent is either carbamide peroxide,
which breaks down in the mouth to form hydrogen
peroxide, or hydrogen peroxide itself. With the
assistance of light and heat the hydrogen peroxide is
Remedent Inc. manufactures a series of patented
products for the dental and OTC market that cause no,
or little side effects, are cost effective and durable.
For the dental division the customers are dentists in
the domestic and international marketplace. In the
domestic market, Belgium, the company sells directly
to dentists and through independent dealers and Most in-office bleaching procedures use a light-cured
distributors. Key products are the Remecure system protective layer that is carefully painted on the gums
2 - Company Report - Remedent Inc.
and papilla (the tips of the gums between the teeth) so optimum results: pressure, light, peroxide, heat and
that no chemical burns can occur to those soft tissues. repetition.
This is not necessary with Remedent’s patented
system. RemeWhite contains a break-through The MetaTray kit consists of a proprietary, reusable
technology called Extracted Aqueous Barrier that mouthpiece that has embedded in the mouthpiece
protects gingival tissues and prevents tooth sensitivity both a heating element and an electroluminescent
by creating a chemical barrier that peroxide will not mesh that are powered by a rechargeable 9 volt power
cross. It does this by extracting moisture from tissues source providing heat and light similar to that which is
that contain high concentrations of water, like the delivered to the teeth by conventional dental lights.
gingival and dentinal tubules, while not preventing
hydroxyl radicals from penetrating and bleaching A major problem with tooth whitening is the
tooth enamel, which contains comparatively little instability of the hydrogen peroxide. To counter that
water. issue, Remedent developed a proprietary foam strip in
which the active ingredient is pre-injected. This way
it releases the peroxide to the tooth’s surface without
dripping or running. Another main advantage of the
strips is that they react as a sponge. As the mouth is
producing more saliva, the saliva is absorbed by the
foam and is pushing the peroxide out of the foam into
the teeth in a chemical reaction.
This also prolongs the release of peroxide, allowing
for a more gradual treatment thus minimizing
irritation to the gums and surrounding tissue. Most
importantly, since the MetaTray kit can be used at
home by the patient, foam strips with the appropriate
concentration of peroxide can be provided by the
dentist, thereby generating a continuing revenue
stream for the dentist while achieving high levels of
Remedent’s latest product for the professional
market is Glamsmile veneers. A traditional veneer is
a custom-made porcelain shell that is placed on top of
a tooth either to improve the aesthetics of a tooth, or
to protect a damaged tooth surface.
At least two visits to the dentist are required in the
RemeWhite is a timesaver for both patient and dentist, traditional veneering process. On the first visit, a
it’s much safer and makes teeth look up to 10 shades model of the tooth is taken. Then a dental technician
whiter in one hour. will create a veneer based on this model and return it
to the dentist for installation.
Additionally, the RemeWhite Home Maintenance Kit
was introduced to be sold by dentists to their patients, Placing a porcelain veneer is an irreversible process
featuring 16 pre-filled trays with a level of whitening because it is necessary to remove some enamel in
agent safe for home use yet stronger than most Over- order to put the shell snugly on the tooth.
The-Counter products. This obviously results in repeat
sales to users of the kit. Traditional veneers have three major disadvantages:
- It’s an irreversible process;
The next product for the professional dentist market - Because veneers are so thick, they can make your
is MetaTray. This is probably the most sophisticated teeth feel bulky and impede your speech;
whitening system on the market today, as it is the - They’re very costly. Prices range from $600 to
only device that utilizes all 5 parameters that lead to $1,200 per tooth;
Company Report - Remedent Inc. - 3
No more of that with Glamsmile. A few weeks ago Remedent held a first demo in
New York with some of the most renowned cosmetic
dentists in the city. All attendants were impressed
with the quality, user-friendliness and pricing of the
product. That Glamsmile may very well become the
breakthrough product for Remedent is evidenced by
the next valuation.
Determining the potential value of a new product
isn’t easy, yet very important. We take three steps in
determining the Glamsmile value.
Glamsmile is a unique patented product that may The first step in forecasting future sales is to identify
revolutionize the veneer market. the number of dentists that are willing and able to place
Glamsmile veneers. Currently only 2 to 3 percent of
Glamsmile veneers are ultra thin shields (2 to 3 dentists are able to place porcelain veneers. Because
times thinner than traditional veneers) made from a Glamsmile veneers are so much easier to put on, the
mixture of a hybrid composite and porcelain, which number of dentists can be increased 10-fold.
are attached to the front of your teeth. Glamsmile
veneers can even be attached to existing crowns and The Belgian cosmetic dentistry market has proven
bridge work without them needing to be replaced. to be a very good and reliable indicator of how the
Since the dentist does not alter the existing teeth rest of the market will react to a new product. When
structure there is absolutely no need for anaesthesia attending a demonstration of the product for the first
and there is no pain when the veneers are attached. time, about 5% of all dentists are interested to start
As a result the treatment is completely reversible. using Glamsmile immediately in their practice. As
Belgium has about 6,000 dentists, this means 300
Another advantage of Glamsmile, compared with dentists are likely to start using Glamsmile after a
traditional veneers, is that many more dentists are first demonstration.
able to place the veneers because the risk of failure is
minimalized. The second step is determining how many dental
arches a dentist will place in one year. This is
Only a highly skilled dentist is able to place traditional probably the single biggest source of error in this
veneers as the shells have to be perfectly positioned, process. Therefore, it is our feeling that it is best to
fitted and bonded one by one. If the first veneer is be conservative. We will only use eight dental arches
attached the slightest bit out of center, all following in our calculation, which is less than one per month.
veneers will be crooked as well. As a consequence the
patient is unhappy and the dentist has to order new Third and final step is the pricing of the product.
veneers and install them at his own expense. Remedent will sell a dental arch for about $1,000. If
we put all this together, we should be able to get a fair
When a dentist uses Glamsmile however, a three- conservative estimate of the potential annual revenue
dimensional digital file is made from the patient’s teeth. for Glamsmile in Belgium. 300 dentists, multiplied
Based on this file, multiple veneers can be generated by eight dental arches per dentist at a cost of $1,000
as a single unit in a tray. This single unit is placed for each arch makes $2.4 million revenue annually in
and aligned by the dentist in one go, which means Belgium alone.
that the process is rapid and ensures that you can go
out in public with a brand new smile just one hour This is one third of Remedent’s total revenue for
later. Thanks to the rapid attachment the treatment is fiscal year 2006.
also considerably cheaper than conventional veneers. Glamsmile, which basically has no competition at this
Porcelain veneers cost $40,000 to $50,000 for a moment, will initially be brought to market in the
complete set of teeth while Glamsmile veneers only United States, Italy, France, Belgium and Holland.
cost $6,000 to $8,000. A final major advantage of Glamsmile is that
4 - Company Report - Remedent Inc.
it will make the Company more independent
from advertisement campaigns and the timing of
distributors. With Glamsmile hundreds of dentists
will place orders on a constant basis.
In July 2003 the Company launched its first product
developed for distribution through drugstores
and specifically pharmacies. The product called
CleverWhite featured a unique non-peroxide formula,
thereby overcoming the European Union regulatory
ban on Over-The-Counter sales of peroxide compounds,
the active ingredient typically found in all United
States tooth whitening products. iWhite® also features a lower concentrations of the
whitening agent, to allow it to be sold in most over the
CleverWhite also utilizes a mouth tray with pre-filled counter distribution channels.
pouches. Those pouches are placed in the mouth tray
and activated once in the mouth with no dripping or Product Pipeline
other discomfort often associated with tray based
whitening systems. To be launched in a few weeks, the Company introduces
a revolutionary product called RemeSense aimed
at people who suffer from dental hypersensitivity.
Dentine hypersensitivity is an intense pain felt when
the dentin of the teeth is exposed to hot or cold foods
It’s generally accepted that the increased or decreased
flow of fluid in the dentinal tubules, which trigger the
nerves along the pulpal canal of the dentin, cause the
pain. This hydrodynamic flow can be increased by
cold, air pressure, dehydration, sugar, sour, etc.
The most inexpensive and effective treatment
for patients so far were toothpastes containing a
Remedent has not targeted their Over-The-Counter desensitizing active ingredient such as potassium
products at the supermarket channels in Europe, nitrate (KNO3) and/or stannous fluoride. Potassium
where the products would face price competition nitrate is commonly used in Sensodyne or Crest
from United States whitening products such as Crest Sensitive. Current treatments however can take
Whitestrips, but rather at the specialty pharmacy between 2 and 12 weeks and if positive results are
market that still thrives throughout Europe. As a achieved, the sensitivity re-appears after a while.
result, the Company believes that their products are
able to maintain higher perceived value within their RemeSense is a unique product as it offers instant
target market. relief. No more brushing your teeth for several weeks,
just buy the product, use it and your pain is gone.
In 2006, a variation of the Company’s MetaTray
product named iWhite was introduced to the We believe this product has tremendous potential
global retail distribution network. iWhite features as it scores very high on patient compliance. With
a mouthpiece similar to that used in the MetaTray RemeSense a patient is instantly relieved from his
products. However, the iWhite mouth-piece only uses pain and it doesn’t cost much more compared to a
the electroluminescent mesh and not the heating treatment with toothpaste.
element thereby reducing the power requirements to
a 3V battery. Mr. De Vreese said, “We are expanding our range of
Company Report - Remedent Inc.-5
products with a kit to treat sensitive teeth. The new As a result, the market has enjoyed a remarkable
product is called ‘RemeSense’, and it will be offered recovery, with sales increasing by almost 8 percent
to our existing retail channel. It is based on the same last year. The $7.4 billion oral care market has
technology currently used in our iWhite range of transformed from stodgy and mature to exciting
products. RemeSense has a huge market potential as and forward-moving, thanks to innovations in the
roughly every second European and every third North whitener, power toothbrush, and other segments.
American suffers from some form of tooth sensitivity.
Moreover, we have conducted a very successful Tooth whitening, has skyrocketed in popularity since
patient test that demonstrates the efficacy of the the beginning of the 2000s, with an estimated one-
treatment.” third of Americans having tried or inquired about
tooth whitening treatments. It’s popular for various
In its quest to improve oral hygiene Remedent will reasons. The most obvious one is because it makes
introduce a ground-breaking fully automated electric you feel great. It helps you improve your facial
toothbrush. appearance and overall personality to a great extent.
Good looking, white teeth give a very good impression
The toothbrush market was revolutionized the first about a person. With the spread of American culture,
time a few decades ago, with the arrival of the electric a “Hollywood smile” is becoming more popular
toothbrush. And although marketing campaigns worldwide. This trend ensures the market will continue
suggest that electrical toothbrushes give better dental to grow for many years to come.
hygiene than manual variants, independent research
doesn’t sustain that claim. With Glamsmile, REMI enters another booming
market, increasing 250% over the past five years.
The biggest problem with both electrical and manual The popularity of veneers has soared, as television
toothbrushes is human interference. Research shows viewers have seen what they can do for contestants
it takes about four minutes to brush your teeth on makeover programs. More and more people are
completely. The same studies reveal however, that willing to spend $500 to $1,500 per tooth to cover
most people only brush their teeth for 20 seconds. up their chipped, stained or worn down enamel, or
As a result not every tooth is brushed evenly and to give the appearance of straightness to a crooked
some teeth, in the back of the mouth, are sometimes smile.
Members of the American Academy of Cosmetic
”We are convinced if Remedent can bring this product Dentistry report that they are doing two and a half
to the market, it could become the second revolution times as many veneer procedures today as they did in
of the toothbrush.” the late 1990’s.
To bypass those problems REMI has come up with Competition
a fully automated toothbrush. This patented product,
which is expected to be on the market by the end of International markets including Europe, Asia and
2007, consists of a mouth tray with thousands of Latin America have followed the United States’ lead
tiny bristles. The bristles rotate in all directions all in expanding offerings in the areas of tooth whitening.
at ones, covering all teeth. This way every tooth is Leading the way in both the professional dentist
perfectly brushed in 20 seconds. and retail segments have been United States based
companies seeking to expand their distribution.
Impeding these efforts has been the inability of many
The maturity of the global oral hygiene market of these companies to fully understand the differences
means that future growth is becoming increasingly from both a distribution and a regulatory standpoint
dependant on product innovation. However with the that apply in each of the European and Asian
consumer’s image becoming all the more important, markets.
the latest market reports suggest that it is the pursuit
of a brighter, whiter smile that is key to pushing up Notwithstanding the formation of the European Union
profits. and its efforts to standardize regulatory and business
practices throughout Europe, these practices in reality
6 - Company Report - Remedent Inc.
vary widely from country to country. In addition, On February 15, 2006, Remedent entered into an
unlike the United States market where pharmacies agreement with Chefaro Pharma Italia S.R.L. to
and supermarkets have become homogenized as to exclusively distribute the iWhite® products in Italy.
retail product offerings and pricings, most companies
in Europe need to distinguish between the locally All agreements require ordering minimum quantities
owned pharmacy and the supermarket chains with of the products.
regard to product brands and pricing offered.
Competition in the professional dentist products
comes primarily from the larger United States based The Company’s second quarter, ending September
competitors including Brite-Smile, Rembrandt (a 30th 2006, was almost written in the black with a
subsidiary of Gillette Company, Inc.) and Zoom. All small loss of $98,000. In the third quarter, revenues
three of these companies offer light and whitening were down due to a substantial order that was shipped
solutions to the professional dentist community. a few days after the period ended. As a consequence
Despite these companies’ advantage with respect these revenues will be recognized in the last quarter
to size, resources and name recognition, Remedent of fiscal year 2007, which ends March 31st.
is able to continue to build market share for the
following reasons: Guy De Vreese, stated, “We are very pleased that
- better combined pricing strategy than the we have achieved significant market penetration
competition when considering net cost for in various European and Asian markets, and our
whitening materials and initial cost of light; selective efforts to grow our footprint in the United
- dual purpose light to maximize value of initial States are on track.”
“The Metatray offers all the advantages of an In-
- ease of use from automated functionality of office tooth whitening procedure. The combination of
light, speed and gel application method; heat, light and pressure of the foamstrips creates an
- superior gel formulation which maximizes extremely efficient procedure. The results I obtained
performance while minimizing sensitivity; are truly impressive.”
- home maintenance kit for improved patient
satisfaction. Evelyne Jacquemijns, Dental Surgeon
Distribution He added, “The iWhite over-the-counter business
has grown with the signing of new distribution
In only four years the Company has established contracts recently. These include deals with Pierre
dealers in 35 countries encompassing, Europe, Asia, Fabre, Chefaro Italy and Chefaro Spain, and Douglas
Latin America, the Pacific Rim and the Middle East. Germany. We estimate that total retailers served by
these distributors will be roughly 19,000 and we have
The strength of Remedent’s product portfolio is a goal of being in at least 48,000 retail outlets. This
evidenced by the quality of its distributors. These business is also expanding in China, with the signing of
big name companies don’t stick out their necks for a a distribution agreement with Sephora China, and we
product they don’t believe in. are signing a distribution agreement with Drugstore.
com to help increase its cyberspace presence.”
On December 21, 2005, the Company entered into
an agreement with Pierre Fabre Medicament S.A., De Vreese further said, “We continue to develop our
a corporation organized under the laws of France. professional treatment business. We have finished
Pursuant to the agreement, commencing on January revamping the new MetaTray in-office treatment. We
1, 2006, Pierre Fabre became the sole and exclusive see a shift of the business towards the cosmetic market,
distributor of the iWhite and MetaTray product in and our revamping addressed that need. In many
France, Guadeloupe, Guiana, Martinique, Mayotte, markets, including the US, we are actively supporting
New Caledonia, French Polynesia, La Reunion, St. this through a number of OEM relationships. In the
Bartholomew, St. Martin, St. Pierre and Miquelon, US, we are dealing with IMDS, a California-based
Wallis and Futuna. dealer that has started to target the cosmetic market.
In Europe, we are dealing with Universal Bright,
Company Report - Remedent Inc.-7
an organization that reaches out to the professional Robin List, Chief Executive Officer.
cosmetic treatment market.” From April 1, 2002, Mr. List has served as CEO and
as a director. From April 2001, Mr. List has served
Management a director of Remedent N.V. From January 1998
through April 2001, Mr. List was a director of New
At Remedent the skills of a group of executives BitSnap N.V., a Belgian company. In this position
and engineers who worked together previously in a Mr. List consulted for DMDS Ltd. From August 1995
multinational dental hardware firm are combined. to January 1998, Mr. List served as commercial
Their respect for one another’s capabilities creates director for WAVE Imaging B.V., a Dutch based
a very professional atmosphere, and their shared company that provided digital services. Mr. List
experiences generate a diverse yet cooperative resides in Belgium.
team effort not often found even in more mature
businesses. Philippe Van Acker, CFO.
These individuals are bottom-line oriented, with an Mr. Van Acker was appointed as Chief Financial
eye on profitability, time to market, and cost control. Officer as of March 30, 2005. From July 2001 to
During their previous association, they dominated March 30, 2005, Mr. Van Acker has served as a
the market for high-speed curing lights and intra- director of the Company’s subsidiary, Remedent N.V.
oral cameras in the worldwide professional dental
where he has also served as financial controller. From
1999 to 2001, Mr. Van Acker served as Director of
Finance for DMDS, Ltd. From 1992 to 1999, Mr.
Guy De Vreese, Chairman.
Van Acker held various positions with Pfizer Medical
From April 1, 2002, Mr. De Vreese has served as
Chairman of the Board. From June 2001 Mr. De
Vreese has also served as President of Remedent N.V.
Stephen Ross, Director, Secretary.
Mr. De Vreese served as President of DMDS, Ltd., a
Mr. Ross has served as director since August 2001
European subsidiary of Dental Medical Systems,
and as Secretary since April 2002. He also served
Inc. DMDS, Ltd. developed and marketed high-tech
as Chief Financial Officer from August 2001 until
dental equipment. In August 1996, Mr. De Vreese
founded DMD N.V., a Belgian company that was the March 2005. From February 1998 through January
independent European distributor for DMDS products 2001, Mr. Ross was CFO of Dental Medical
and was its Chief Executive Officer until DMD Diagnostic Systems, Inc., a company that developed
purchased its distribution rights in April 1998. Mr. and marketed high-tech dental equipment.
De Vreese later worked as CEO from 1996 through
February 1999 for Lident, N.V., a Belgian company
that merged with DMD and specialized in digital
photography and developer of imaging software.
Mr. De Vreese also served as a consultant providing
services to DMDS, Ltd. from February 1999 to June
8 - Company Report - Remedent Inc.
We believe that Remedent Inc. offers a great opportunity for investors in the oral care market.
The Company was able to attract a very select group The Company has a skilled management team with
of distributors. The mere fact that these giants are many years of experience in the dental care market.
willing to put there time and money on the line is a
positive sign. Remedent’s financials will significantly grow and
become more stable with a growing stream of revenues
Glamsmile, which is currently being launched, is from Glamsmile veneers.
likely to set of a revolution in the veneer business as
it basically has no competition, is user-friendly and is The Company is continuously in search for products
inexpensive compared with traditional veneers. that leverage its experience and it maintains a
dedicated RD staff.
According to a new market report, teeth whitening
and anti-ageing products continue to dominate the With today’s aging baby boomer population and the
top new product launches in the US. The findings increasing emphasis on youth and beauty, whitening
provide further evidence that enhancement of physical products appeal to consumers worldwide.
attributes continues to be the driving force behind
Remedent is on the threshold of a breakthrough with
a number of new exciting products coming to the
Xavier De Cocklaan 42
Phone: +32 9 321 70 80
Fax: +32 9 321 70 90
Company Report - Remedent Inc. - 9