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
* 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
posted by Zo Heri at 11:42 AM
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