CAD/CAM - international magazine of digital dentistry

I 19 feature _ interview I CAD/CAM 2_2014 _Is there the risk that you might be creating more competition for yourself with this invest- ment? We would not have taken this step if the market situation had not required it. The trend towards products in the medium-price range has accelerated and there is already strong competi- tion, even without MegaGen. We are not adding more competition; rather, we are competing where we could not compete as Straumann. _What position is your company generally aiming for in the Asia Pacific region? We aspire to market leadership in the region. We are not there yet, partly because our Roxolid implants with the SLActive surface are not yet availableinthelargermarkets.Werecentlyreceived approval for SLActive Tissue Level implants in Japanandthesalesfiguresdemonstratetheextent of the potential of our innovative technologies. Achieving a leading position in Asia will cer- tainly have a positive influence on our global position. _What requirements will have to be fulfilled for you to exercise the option to convert and acquire a majority stake in MegaGen in 2016? We are keeping a close eye on the company’s development. MegaGen is a relatively new enter- prise. It is growing dynamically and has many ambitions that still have to be realised. We also want to see how the market develops and the extent to which MegaGen can penetrate certain areas. The company’s valuation is another item on our radar. If our expectations are met, we can convert the bonds into shares in 2016 or require repayment with interest. That is the flexibility that this option allows us. _Should you decide to convert the bonds into stock, another large international implant con- glomerate would be created. Is it only possible to survive in the long run as a large market player? The implant market is still very fragmented and the market share of larger corporations is actually declining. There are hundreds and hun- dreds of smaller providers, often founded by den- tal clinicians, that come and go because they do not have the capability to expand internationally. Few companies succeed in making this jump and remaining in the market for a longer period. Unlike in some industries, scale in the dental implant industry does not have inherent returns. What we are seeing is a consolidation in a larger context, as many distributors have started to include implants in their portfolios with the aim of becoming one-stop shops. This development needs careful scrutiny because implants involve other factors that only we as specialists can deliver. _Thank you very much for the interview. Georg Isbaner (left) in talks with Frank Hemm. (DTI/Photo Henrik Schröder, Germany) CAD0214_18-19_Hemm 16.05.14 12:08 Seite 2