RSA Conference Exhibitor List 2024 - Exhibitors Data
Dental Division Board Presentation Bob Guyatt
1. Dental Market Overview
I. SITUATIONAL ANALYSIS-DENTAL IMPLANT SYSTEMS*
In 2007 the global dental implant market, including Europe (Germany, Italy, Spain, France, Sweden, the
United Kingdom and Switzerland), the US, and Asia Pacific (South Korea, Japan, and Australia), was
valued at $2.1 billion. Europe represented 48% of the global market for implant and abutment revenues;
the US represented 33% of total global sales.
The worldwide dental implant market is expected to grow at a compound annual growth rate (CAGR) of
16%, achieving $4 billion by 2011. Over the forecast period Europe is expected to grow at a CAGR of
13%; the US at a CAGR of 21% and Asia Pacific at a CAGR of 16%.
Exhibit 1: Dental Implant Market, by Region, Global (US$), 2005-2011
As a As a Asia As a
Europe % of US % of Pacific % of Total
Year (US$M) Growth Total (US$M) Growth Total (US$M) Growth Total (US$M) Growth
2005 $773.0 51.3% $445.0 29.5% $290.2 19.2% $1,508.2
2006 $886.7 14.7% 49.4% $560.5 26.0% 31.2% $347.9 19.9% 19.4% $1,795.0 19.0%
2007 $1,011.1 14.0% 47.7% $693.6 23.8% 32.8% $413.1 18.8% 19.5% $2,117.8 18.0%
2008 $1,147.7 13.5% 46.2% $850.8 22.7% 34.2% $485.7 17.6% 19.6% $2,484.3 17.3%
2009 $1,298.9 13.2% 44.8% $1,034.0 21.5% 35.7% $565.5 16.4% 19.5% $2,898.4 16.7%
2010 $1,461.1 12.5% 43.5% $1,244.5 20.4% 37.1% $651.7 15.2% 19.4% $3,357.3 15.8%
2011 $1,633.7 11.8% 42.3% $1,482.9 19.2% 38.4% $743.6 14.1% 19.3% $3,860.2 15.0%
CAGR 12.7% 20.9% 15.8% 16.2%
('07-'11)
Notes:
(1) Numbers may not add to totals due to rounding.
(2) European market includes Germany, Italy, Spain, France, Sweden, the UK, and Switzerland; and the Asia Pacific market
includes South Korea, Japan and Australia.
(3) The US dental implant market comprises regular- (> 3.0mm) and small-diameter (≤ 3.0mm) implants, while the European and
Asia Pacific markets comprise only regular-diameter (> 3.0mm) dental implants.
Source: Millennium Research Group.
The leading competitive dental implant manufacturers comprised 75-80% of the global market over the
last two years.
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Board Presentation; Bob Guyatt
2. Exhibit 2: Leading Competitors in the Global Dental Implant Market- 2005 vs. 2006
Percent of Global Market Share
∆
2005 2006
Nobel Biocare 23% 25% 2%
Straumann 20% 17% -3%
3i 13% 11% -2%
Zimmer 9% 8% -1%
Astra Tech 5% 6% 1%
Dentsply/ Friadent Ceramed 6% 5% -1%
Lifecore Dental 3% 3% 0%
Other 21% 25% 4%
Total 100% 100%
Nobel Biocare’s decrease in the European market is a result of the negative press received as a result of
the reported failures in 2006 of their one piece implant. Straumann’s decrease in market share was the
result of a combination of the introduction of several new Straumann clones and the lack of an implant
designed for anterior placement. Astra Tech’s increase was a direct result of the introduction of a new
surface technology, OsseoSpeed, combined with the sales force expansion and the introduction of their
TiDesign prosthetic line extensions.
Exhibit 3: Leading Competitors in the European Dental Implant Market- 2005 vs. 2006
European Market Share
∆
2005 2006
Nobel Biocare 24% 23% -1%
Straumann 24% 22% -2%
3i 12% 11% -1%
Zimmer 6% 6% 0%
Dentsply Friadent Ceramed 9% 10% 1%
Astra 6% 6% 0%
Lifecore 3% 3% 0%
Nobel Biocare’s US market share increase in 2006 is a result of the impact of proprietary new product
introductions, a large US sales force, extensive education offerings and premium price points.
Exhibit 4: Leading Competitors in the US Dental Implant Market- 2005 vs. 2006
US Market Share
∆
2005 2006
Nobel Biocare 28% 32% 4%
Straumann 18% 18% 0%
3i 15% 12% -3%
Zimmer 14% 11% -3%
Astra 4% 6% 2%
Dentsply Friadent Ceramed 4% 3% -1%
Lifecore 3% 3% 0%
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Board Presentation; Bob Guyatt
3. Exhibit 5: Leading Competitors in the Asian Dental Implant Market- 2005 vs. 2006
Asian Markets
∆
2005 2006
Nobel Biocare 15% 18% 3%
Straumann 12% 7% -5%
Osstem 12% 19% 7%
3i 10% 6% -4%
Zimmer 9% 10% 1%
Dentium n/a 6%
JMM n/a 5%
Megagen n/a 4%
Astra n/a 3.7%
Dentsply Friadent Ceramed n/a 1.9%
Lifecore n/a 1.9%
The global revenue summary for Restore, Stage-1, and Renova suggest a combination of market
dynamics are at work: Products entering the maturity phase of their product life cycle in a competitive
market typically experience a decrease in revenue. In addition, as product designs become commoditized
and replicated by competitors, the lack of scarcity and product uniqueness drives down price points.
Transactional buyers by definition view implant systems as a commodity and as a result make purchasing
decisions based on price. The success of Prima shows the value of a patented design rationale and
branding of TiLobe™ Technology; combined with a positioning strategy that resonates with the extrinsic
target audience.
Exhibit 6: Lifecore Dental Global Revenue Summary; implant systems (tabular):
FY05 FY06 FY07 FY08 Proj
(000,000’s) (000,000’s) (000,000’s) (000,000’s)
Restore $19.6 $19.0 $17.6 $17.5
Stage-1 $ 9.1 $ 8.7 $ 7.0 $ 6.8
Renova $ 5.2 $ 5.9 $ 4.8 $ 4.5
Prima $ - $ 4.6 $14.0 $22.0
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Board Presentation; Bob Guyatt
4. Exhibit 7: Global Revenue Summary; implant systems (graphical):
$25,000,000
$20,000,000
$15,000,000 Restore
Stage-1
Renova
Prima
$10,000,000
$5,000,000
$-
FY05 FY06 FY07 FY08 Proj
II. SITUATIONAL ANALYSIS- US BIOMATERIALS
In 2007, the US market for dental biomaterials is projected to be valued at $115 million in revenues.
Comprised of dental bone graft substitutes (BGS), tissue regeneration (TR) materials, and dental
membranes, this market will experience strong growth over the forecast period, driven primarily by the
growing number of procedures requiring dental biomaterials. In the US, dental biomaterials are
increasingly used to complement a growing number of dental implant and periodontal procedures.
Comprised of bone graft substitutes, dental membranes, and tissue regeneration products, this market
will expand to reach $235 million by 2011.
Exhibit 8 Dental Biomaterials Market, by Segment as a % of Total US 2007:
Dental Bone Graft Substitute (BGS) products offer dentists the option of grafting nonautogenous bone
during dental surgery. Although autograft is the gold standard for use in dental bone grafting surgery, the
challenge in harvesting an autograft-often requiring secondary surgery-can be avoided by using a
substitute product. Dental bone graft substitutes are either derived from human cadaveric bone (allograft),
animal bone (xenograft), or synthetic material designed to replicate the properties of human bone. In
2007, allograft products are the most popular of these dental BGS materials, with proprietary and
nonproprietary allograft combined representing over 1/3 of total BGS revenues and will remain the most
popular dental BGS material through 2011.
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Board Presentation; Bob Guyatt
5. Exhibit 9: Dental Bone Graft Procedures, by Type, as a % of Total, US 2005-2011
Dental membranes represented the second-largest dental biomaterials segment in 2006. Dental
membranes help to facilitate a multitude of oral surgery procedures which include bone grafting and
tissue regeneration. Strong growth in both the bone grafting and tissue regeneration segments is
contributing to the growth of the dental membrane market.
Tissue Regeneration materials were the third-largest dental biomaterial market segment in the US. These
materials represent an important development in hard and soft tissue regeneration. Unique in their ability
to stimulate the development of tooth-supporting tissues, these materials are used either alone or in
conjunction with dental bone graft substitute (BGS) materials. Over the next 5 years, the US tissue
regeneration (TR) market will grow substantially at a compound annual growth rate (CAGR) of over 13%.
Exhibit 10: Tissue Regeneration Procedures, US, 2005-2011
In 2007 Bio-Oss by Osteohealth has maintained its leadership of the US market for dental bone graft
substitutes and the overall dental biomaterial market. Zimmer Dental’s Puros product earned the second
largest share of the dental bone graft substitute and dental biomaterials market.
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Board Presentation; Bob Guyatt
6. Exhibit 11: Leading Competitors of the Dental Biomaterials Market, US, 2007
Exhibit 12: Lifecore Dental Global Sales in US$ Summary; Regenerative products (tabular):
FY07 FY08
ACTUAL PROJECTED VARIANCE YR / YR
(000’s) (000’s) (000’s) CHANGE
CAPSET $ 196 $ 170 $ (26) -13%
TEFGEN $ 521 $ 610 $ 89 17%
CALMATRIX $ 938 $ 1.1 $ 162 17%
CALFORMA $ 943 $ 1.1 $ 157 17%
TOTAL $ 2,598 $ 2,980 $ 382 15%
Exhibit 13: Lifecore Dental Global Sales in US$ Summary; Regenerative products (graphical):
Regen
$3,500,000
$3,000,000
$2,500,000
$2,000,000
Regen
$1,500,000
$1,000,000
$500,000
$-
FY05 FY06 FY07 FY08 Proj
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Board Presentation; Bob Guyatt
7. III. LIFECORE DENTAL POSITIONING
Critical Issues
The market research indicates that the global market will continue to expand through the forecast period
of 2011; primarily as a result of an increase in patient awareness and clinician interest in the benefits
offered by dental implant therapy. Market drivers contributing to the expansion of the global market
consist primarily of new technology and education initiatives. The market limiters consist of the expense
of implant therapy; this is magnified by the lack of reimbursement in most countries. However, we believe
that helping the clinician convey the “dollarized value” of dental implant therapy will minimize the impact
of the price/reimbursement issue.
We have identified two critical issues impacting our business: 1) Commoditization and 2) Complexity. The
globalization of our economy and low barriers to entry for competitive products will potentially lead to the
commoditization of the dental implant industry. The complexity in managing the needs of our target
audience will become critical to maintaining high levels of customer satisfaction and retention.
Customer/target audience
One key to our success will be properly diagnosing, designing and delivering products and services to
meet the existing needs of our existing customers and desired target audience. We have identified three
distinct target audiences through a Scanning and Analysis of the dental implant industry:
1) Extrinsic. 2) Intrinsic. 3) Transactional.
Extrinsic Customer
The needs of the extrinsic audience are for unique product offerings and added-value services that take
the form of education initiatives designed to help them differentiate their practices. The extrinsic value
audience is relatively price-insensitive and considers the dental implant system they use as a surrogate
indicator of quality for their practice. The impact of a sales force within this category is elastic; price is
relatively inelastic.
Intrinsic Customer
The needs of the intrinsic customer are centered primarily on the dental implant system design rationale.
Price sensitivity is dependent upon the uniqueness of the design and the availability of similar competitive
offerings. The impact of a sales force within this category is elastic; price is relatively inelastic.
Transactional Customer
The needs of the transactional customer are primarily price related. Transactional buyers tend to view
dental implant systems as a commodity and differentiate and purchase products based on price. The
impact of a sales force for customers within this category is inelastic; price is elastic.
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Board Presentation; Bob Guyatt
8. Threats
There are three primary external obstacles to growing our business: 1). The proliferation of new market
entrants with a price-centric focus as the primary way to gain market share and contribute to the risk of
commoditization within the dental implant industry. 2). Latest technology competitive product innovations
which are a key preference of our extrinsic value target audience. 3).The acceptance of our desired
branding proposition; previous selling tactics have de-valued the Lifecore Dental brand and required that
we engage in a brand revitalization strategy aimed at establishing a partnership with the extrinsic value
target audience who pay added-value prices and show a high level of loyalty to the dental implant
manufacturer. Our brand revitalization strategy will insulate us from the competitive pressures such as
commoditization entering the dental implant market.
Opportunities
In the US market there are approximately 14,000 surgical specialists in practice. Through an internal audit
of Prima surgical customers located in the US we have identified that we currently have approximately
210 Prima surgical specialists, which we define as periodontists or oral surgeons. This represents
approximately 1.5% of the potential market for surgical specialists within the US.
The average Prima surgical specialist generated approximately $25,000 in revenue over a nine month
period. The average Prima surgical general dentist generated approximately $8,740 in revenue over the
same nine month period.
The buyers who comprise the dental implant market are becoming more colonized as the industry grows.
In response to this trend we are creating finely striated segmentation strategies to position our dental
implant systems to address the behaviors, preferences and needs of the Extrinsic, Intrinsic, and
Transactional buyers; this will concurrently minimize the risk of cannibalization of Prima, our flagship
dental implant system. Colonization of the three categories of buyers, Extrinsic, Intrinsic, and
Transactional, will allow us to exploit each of our four dental implant systems and position them to meet
the needs of each buyer category and allow us to develop a sustainable competitive advantage.
Dental implant surface technology both enhances the rate of osseointegration and the time it takes for
osseointegration to occur. Surface technology is also a surrogate indicator of quality for a dental implant
system. The new market entrants who focus on price have de-valued the RBM surface technology we
currently use on our dental implants. The “connect and develop” approach to product innovation available
to Lifecore will allow us to quickly respond to the preference for a dual surface roughening technology.
Properly positioning and branding this technology will allow us to connect with both the head and the
heart of our target audience.
Education initiatives and clinical documentation resonate with the extrinsic buyers within the dental
implant market and allow for value-added price points. Education initiatives and clinical documentation
are prerequisites for increasing our market share within the surgical specialist category; a category
responsible for placing 90% of the implants in the US market.
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Board Presentation; Bob Guyatt
9. Zirconia abutments are a surrogate indicator of quality for all implant systems and a fundamental
requirement for our Prima target audience. In addition, zirconia abutments are indicated in a majority of
anterior single-tooth replacement cases that involve patients with a thin tissue biotype.
Computer-assisted design/ computer-assisted manufacturing (CADCAM) technology allow for
patient specific restorations and minimize the inventory a restorative dentist must maintain. These
advantages will drive the increased penetration of custom-milled abutments globally. In Europe, 20%, or
approximately $118 million US, of all final abutments placed will be custom-milled by 2011, and in the US
this value will be 30%, or approximately $146 million US, for the same year.
Bone graft material is involved in a majority of procedures accompanying the placement of a dental
implant, such as a sinus lift. The US CAGR for bone graft substitutes is expected to approach 17%
through 2011. In 2006 1.4 million regular diameter dental implants were placed in the US representing a
17% increase over the previous year; over the next 5 years the number will grow with similar strength.
Weaknesses
Tactical product development in the past resulted in fundamental gaps within our Prima product line. Slow
response to the needs of the market in the area of surface technology and prosthetic offerings has further
limited our ability to align with the robust high volume, high influence extrinsic value customer.
The essence of selling is the transference of emotion, changing the normative behaviors of our sales
force will be required to re-brand Lifecore Dental. The normative behaviors of the sales force have
distanced Lifecore Dental from the target audience we desire to align with; adaptive behavior change
focused on the “dollarized value” selling approach will be required to effect the desired change needed.
The current view of Lifecore Dental by many constituents within our target audience as a “price brand” will
take time and evidence to overcome.
Strengths
A branded “Connect and Develop” innovation through exploitation strategy for our calcium-phosphate
ceramic dual roughening technique, Arcitexture™, will allow us to differentiate our dental implant
roughening surface technology from the nascent low price market entrants and compete with the leading
competitors that offer dual roughened premium priced dental implant systems. This exploitation strategy
will also allow us to manage for the intermediate and introduce Arcitexture™ to the market in a relatively
rd
short period of time and build for the future by developing the 3 generation of Lifecore Dental surface
technology. Arcitexture™ is scheduled for market introduction November 2007.
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Board Presentation; Bob Guyatt
10. Exhibit 14: Logo (pending trademark/FDA approval) for Lifecore Dental dual roughening
technology:
Clinical documentation validating the value proposition for the Prima System in reputable journals will be
introduced into the dental market in the 3 rd quarter of the current fiscal year. Innovation in education
featuring the Lifecore Team Day programs will be introduced in January of 2008. We have also re-
branded our Support Plus programs as the Lifecore Skills Series™. The Lifecore Dental Skills Series
consists of various Know HOW courses; Hands On Workshops are designed to meet the needs of our
target audience.
The addition of our Esthetic Contour Zi™ zirconia abutment to the Prima Implant System Esthetic
Contour™ portfolio of products, scheduled for release in October of 2007, will allow us to further
penetrate the high-end, extrinsic value oriented surgical specialist and their restorative base.
Exhibit 15: Esthetic Contour Zi™ abutment:
Another “Connect and Develop” strategy we have entered into involves a partnership with Denta
Structures™ Corporation located in Golden, Colorado. The proprietary technology offered through this
alliance will allow us to compete in the custom-milled abutment market and differentiate our custom-milled
titanium abutment technology under the Lifecore Dental brand as Lifecore DDS; scheduled for market
introduction in 2nd quarter fiscal year 2008.
Exhibit 16: Logo (pending TM/FDA approval) for Lifecore Dental custom-milled abutment
Lifecore DDS
“Your prescription for personalized esthetics”
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Board Presentation; Bob Guyatt
11. When evaluating the preferences and surrogate indicators of quality that resonate with our target
audience, it becomes evident that clinical documentation wrapped in business building education
initiatives are a prerequisite to expanding the extensity and intensity of business with our target audience.
In response to the findings of this research we introduced the concept of a Lifecore Advisory Board which
will allow us to quick prototype products in response to market trends and accelerate market introduction.
The Lifecore Advisory Board will be comprised of an elite hand-picked selection of high quality/high
influence clinicians from around the world.
Exhibit 17: Logo (pending trademark approval) for Lifecore Advisory Board:
In addition, our Stage-1 dental implant system is currently being enhanced to address the needs of the
intrinsic market it serves. These enhancements will strengthen Stage-1’s competitive position in the
marketplace and ensure that product performance is congruent with our commitment to purposeful
innovation. Market introduction is scheduled for May of 2008.
IV. STRATEGY & TACTICS
Positioning Statement
Focus on the extrinsic buyer while using Web 2.0 to protect our intrinsic and transactional business;
ensure brand authenticity, consistency and clarity within each of our product portfolios.
Objectives
Segment clinicians within the field of implant dentistry; teach the sales force to target the extrinsic value,
high volume/high influence surgical specialists and develop their referral base; position Prima as a
surrogate indicator of quality within the practice of our target audience.
Penetrate the specialist market to move from our current market penetration level for Prima of 1.7% to 5%
by the end of FY 08.
Position Restore, Stage-1, and Renova with the intrinsic value and transactional customer segments
within the field of implant dentistry.
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Board Presentation; Bob Guyatt
12. Position and expand through a “connect and develop” strategy the Lifecore regenerative line of products
as a means to establish business and build rapport with our target audience.
Strategy
Ongoing classroom based and field based sales training of the Lifecore Dental-Alpha, Theta, and Omega-
sales skills proficiency progression model (SSCPM).
Implement “manage your moves” dollarized value approach to selling by targeting specific surgical
specialists. Assign focus group presentation quotas to each sales team member and execute on the
focus group approach to selling concept by promoting the Prima value proposition and the Playbook sales
promotions.
Implement an internet driven campaign, restore@lifecore.com, stage-1@lifecore.com and
Renova@lifecore.com supported by in-house customer service to protect our existing customers.
The internet based approach for Restore, Stage-1 and Renova will allow us to save on the activity based
costs associated with transactional customers who are less sales representative centric. This will free up
our sales force of 41 to apply intensity to the promotion of the Prima Dental Implant System, manage their
moves and focus on the extrinsic target audience who are sales representative centric.
Create a force multiplier by bundling Lifecore regenerative materials with the purchase of dental implants.
This “special offer” bundling strategy will address one of the key factors, price, which is projected to limit
growth of this category of products while allowing us to establish a greater share of wallet with our target
audience. Engage in a scanning and analysis of the biomaterials market to identify potential strategic
partnerships to enhance our current portfolio of regenerative products.
* The sources used for the compilation of the information in this document included the Millennium
Research Group, industry experts, current customers and other corporate public information reports.
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Board Presentation; Bob Guyatt