Straumann moves to pole position in dental implants

* H1 profit down 3 pct to 82 mln Swiss francs

* Meets average estimate of 82.1 mln Sfr in Reuters poll

* Confirms full-year guidance

* Shares rise 4.3 percent

(Adds detail, background, shares, analyst comment)

By Katie Reid

ZURICH, Aug 19 (Reuters) - Switzerland's Straumann (STMN.S) has replaced Nobel Biocare (NOBN.VX) at the top of the global dental implants market after more dentists opted for its products during the first half.

Straumann's first-half revenue rose 4.2 percent to 392 million Swiss francs ($375.5 million), putting the bite on Nobel Biocare, which posted a 6.3 percent revenue fall as Straumann stole a march in key markets such as the United States.

The dental implant market is showing signs of recovery, with key players such as Zimmer (ZMH.N) and Biomet [LVBHAB.UL] also reporting more patients opting for the non-urgent treatments they put off during the financial crisis. [ID:nN22258939]

Nobel Biocare's quarterly results last week showed it failed to take advantage of this trend and looked set to lag the market over the next months, as patients hesitated about its more complicated and costly procedures. [ID:nLDE67904Q]

At 0856 GMT, Straumann shares were up 4.3 percent at 246.50 Swiss francs, going some way to reverse the 19 percent lost so far this year and easily outperforming the European healthcare sector. .SXDP.

OUTPACING THE MARKET

First-half net profit at Straumann slipped 3 percent to 82 million Swiss francs ($78.69 million), meeting the average estimate in a Reuters poll.

Straumann is striving to outperform the market this year and is aiming for full-year net revenue and an operating margin at least in line with the prior year.

The group expects the market will grow in the low-single-digit range in 2010, but it does not see it returning to double-digit growth before 2012.

"We think Straumann should continue to outgrow the market in the second half driven by strong product momentum, including the launch of its Roxolid implant, the ongoing roll-out of its bone-level implant in the US, and as it expands sales with new accounts won during the recession," analysts at Bank of America Merrill Lynch said in a note.

Most analysts view the industry's long-term prospects as bright, thanks to ageing populations in Europe and the United States as well as an increased awareness of the cosmetic advantages of implants and veneers.

Straumann is currently trading at around 19.6 times 2011 earnings, at a premium to Nobel Biocare at nearly 15 times. (Editing by David Cowell)

($1=1.042 Swiss Franc)

Thu Aug 19, 2010 4:57am EDT

Nobel Biocare still losing market share, stock tumbles

* Q2 profit 19.6 mln euros, misses poll

* Average estimate in Reuters poll was 22 mln euros

* Still losing market share

* Says market may return to growth in 2010

* Shares slump nearly 11 percent

(Adds analyst comment, shares, background)

By Katie Reid

ZURICH, Aug 11 (Reuters) - Struggling Swiss dental implant maker Nobel Biocare (NOBN.VX) will lose more market share this year and may soon surrender top spot as patients hold off on the more complicated treatments offered by the group.

The company's shares tumbled almost 11 percent, close to an 18-month low and standing at 16.85 Swiss francs at 0858 GMT. The stock has already slumped 46 percent this year.

Nobel Biocare has been losing market share for over a year and may be overtaken after quarterly results from Swiss rival Straumann (STMN.S) on Aug. 19.

Nobel Biocare's second-quarter sales edged up 1 percent, reversing a slump in the first quarter, but it is still trailing peers as sales in Spain and the United States remained weak.

"While marginal improvement in top line growth is evident, the reported sales performance and associated market share losses are still very worrying," analysts at Credit Suisse said in a note.

Nobel Biocare's net profit also fell short of expectations, sliding to 19.6 million euros from 28.2 million euros in the year-ago period.

MARKET RECOVERY

The dental implant market could return to growth this year but Chief Executive Domenico Scala cautioned a recovery was likely to be slow.

The group is hoping its restructuring efforts should allow it to return to at least market growth within the next 9-12 months.

There have been signs that the beleaguered market is starting to stabilise, with peers such as Zimmer (ZMH.N) and Biomet recently posting sales rises.

Demand for dental implants fell sharply during the economic crisis and Nobel Biocare was particularly hard hit due to its focus on more costly, larger case treatments and also because of its U.S. exposure.

Most analysts still view the industry's long-term prospects as bright, thanks to ageing populations in Europe and the United States as well as an increased awareness of the cosmetic advantages of implants and veneers.

Nobel Biocare is trading at around 15 times 2011 earnings, at a discount to Straumann at 20.5 times. (Editing by David Cowell)

Wed Aug 11, 2010 5:03am EDT