BASEL, Switzerland, April 26, 2006 (PRIMEZONE) --
-- Sales grow 23% in local currencies driven by solid European
performance and boosted by advanced ordering in Asia/Pacific
-- 'SLActive' launched in North America and well received in Europe
-- Group maintains full-year outlook
(in CHF million) Q1 2006 Q1 2005
Group Sales 158.9 125.6
Growth in % 26.5 16.4
Growth in local currencies % 22.5 18.9
Straumann, a world leader in implant dentistry and oral tissue regeneration, today reported 2006 first-quarter sales of CHF 159 million, representing an increase of almost 23% in local currencies (l.c.). 21% points of the growth were generated organically, while less than 2% points were related collectively to the acquisition of the Danish distributor and the takeover of distribution in Mexico and Australia. The strengthening of both the US dollar and the Euro against the Swiss franc added 4% points, bringing sales growth in Swiss francs to 27%.
Europe
European sales reached CHF 100 million, climbing 25% (26% in CHF) from the comparative period of 2005, which was dampened mainly by treatment delays in Germany due to the implementation of partial reimbursement. In the first-quarter of 2006, sales in Germany rose more than 20%, partly reflecting the low comparative basis. More than a third of Straumann's regional sales are generated in the German market. Sales in Sweden also picked up considerably from the low first quarter level of last year.
North America
North American revenues were up 15% in l.c. to CHF 37 million. This corresponded to a 28% increase in Swiss francs by virtue of the positive currency effect. The process of recruiting a new Head of the North American region is well underway and an appointment is expected by mid-year. Marianne Burgi, Member of the Group's Executive Management, is overseeing Straumann's North American business ad interim.
Asia/Pacific and RoW
Sales in the Asia/Pacific region jumped 35% to CHF 19 million, boosted by continued advanced ordering ahead of the announced Spring price increases. Elsewhere in the rest of the world, sales were in line with the previous first quarter.
SLActive launched in North America
The annual meeting of the Association for Osseointegration (AO) in Seattle, USA, in March provided an excellent platform for the North American market launch of Straumann's third-generation implant surface technology, SLActive. Since its initial introduction in Europe, the new surface has been well received and is now available on a broad range of Straumann implants.
Research update
SLActive
In all, more than 14 studies(a) on SLActive have been initiated, with particular focus on the initial healing processes. These add to the existing body of scientific data on SLA that supports the new surface.
The development program and distinct clinical benefits of SLActive were also reviewed at the AO. The new surface has shown outstanding clinical results and predictability. For example, in the multicenter clinical trial initiated in 2004 and involving 19 centers worldwide, more than 400 SLActive implants have been placed with a survival rate of 98%. This is remarkable in view of the extremely challenging treatment protocols involving immediate function/loading (211 implants) or early loading (190 implants).
To add further to the body of peer-reviewed published scientific evidence supporting SLActive, the results of a significant preclinical trial are in the process of being accepted for publication in a leading peer-reviewed journal(b). The findings demonstrate that osseointegration occurred up to twice as fast with the SLActive surface by comparison with the current gold-standard SLA surface.
Straumann Emdogain
In February, another peer-reviewed journal published the 5-year results of a long-term study in 82 patients treated with Emdogain, the easy-to-apply gel that helps to repair periodontal tissues and bone. The study showed statistically significant increases in tooth attachment after 1 year (p less than 0.001), which increased even further at 5 years (p less than 0.01) after treatment, endorsing the long-term effectiveness of regenerative periodontal surgery with Emdogain(c).
(a) SLActive Scientific Studies -- an overview STARGET Focus April 2006.
(b) Schwarz F, Herten M, Sager M, et al.: Histological and immunohistochemical analysis of early osseous integration at chemically modified and conventional SLA titanium implants. Preliminary results of a pilot study in dogs. Clinical Oral Implants Research (submitted).
(c) Heden G, Wenstrom J: Five-year follow-up of regenerative periodontal therapy with enamel matrix derivative at sites with angular bone defects. J Periodontol 2006;77:295-301.
Pipeline projects
Straumann's novel fully synthetic bone-graft substitute, Straumann Bone Ceramic, has been well received in North America since its launch there last September. This is due to the fact that it provides maximum space for new bone and offers outstanding handling convenience. The product roll-out in Europe was initiated in the first-quarter. Preparations are being made for the initial launch of another new product, 'Straumann Emdogain PLUS', in Europe next quarter. This is a combination of Straumann Bone Ceramic and Emdogain that provides combined tissue support and regenerative properties for filling wide defects in periodontal disease and tooth extraction sites. The latest clinical findings will be presented at the Europerio meeting in Madrid in June.
Other news
At their Annual General Meeting on 24 March 2006, Straumann shareholders approved all proposals of the Board of Directors, including the 7th consecutive increase in the ordinary dividend since the company became publicly traded in 1998. In light of the strong business performance in 2005, the shareholders approved a 25% increase in the dividend to CHF 2.50 per share, paid as of 31 March 2006. The shareholders also re-elected Oskar Ronner for a further three-year period as a Member of the Board. He continues to be the Vice-Chairman of the Board and heads the Board's Human Resource Committee.
Outlook
In view of the irregular ordering patterns in Asia/Pacific and taking into account the higher comparative baseline for Europe in the remaining quarters, Straumann is maintaining its 2006 guidance given in February: full-year sales are expected to grow slightly above the market, with profitability margins remaining stable and comparable to 2005.
Concerning forward-looking statements
This media release contains certain "forward-looking statements", which can be identified by the use of terminology such as "expected", "is overseeing", "ad interim", "underway", "continued", "further", "outlook", "guidance", "remaining stable and comparable", or similar wording. Such forward-looking statements reflect the current views of management and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Straumann Group ("Group") to differ materially from those expressed or implied. These include risks related to the success of and demand for the Group's products, the potential for the Group's products to become obsolete, the Group's ability to defend its intellectual property, the Group's ability to develop and commercialize new products in a timely manner, the dynamic and competitive environment in which the Group operates, the regulatory environment, changes in currency exchange rates, the Group's ability to generate revenues and profitability, the Group's ability to realize expansion projects or projects to establish subsidiaries in a timely manner, and the Group's ability to recruit and retain key employees. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this release. Straumann is providing the information in this release as of this date and does not undertake any obligation to update any forward-looking statements contained in it as a result of new information, future events or otherwise.
About Straumann
Headquartered in Basel, Switzerland, the Straumann Group (SWX: STMN) is a global leader in implant dentistry and oral tissue regeneration. In collaboration with the International Team for Implantology (ITI), leading clinics, research institutes and universities, the Group researches and develops implants, instruments and tissue regeneration products for use in tooth replacement solutions or to prevent tooth loss. The Group manufactures implant system components and instruments in Switzerland and the US and dental tissue regeneration products in Sweden. Straumann also offers comprehensive training and services to the dental profession worldwide. Altogether, Straumann employs approximately 1420 people worldwide and its products and services are available in more than 60 countries through the Group's 18 distribution subsidiaries and broad network of distribution partners.
Further reporting dates in 2006 11 August 2006 Half-year report; Analysts and media conference 25 October 2006 Q3 and 9M sales
Details of Straumann roadshows and other events for investors are published on www.straumann.com.
First-quarter sales by region
(in CHF million) Q1 2006 Q1 2005
Europe 99.9 79.6
Growth in % 25.5 12.9
Growth in local currencies in % 24.6 14.0
In % of Group sales 62.9 63.4
North America 37.0 28.9
Growth in % 27.8 11.4
Growth in local currencies in % 14.6 18.5
In % of Group sales 23.3 23.0
Asia/Pacific 19.1 14.1
Growth in % 35.4 46.7
In % of Group sales 12.0 11.2
Rest of the world 3.0 3.0
Growth in % 0 64.0
In % of Group sales 1.9 2.4
Total 158.9 125.6
Growth in % 26.5 16.4
Growth in local currencies in % 22.5 18.9