What was the vision that united the diverse dental brands under Envista?
Our vision at Envista was inspired by our former parent company’s strategy of focusing on industries with long-term growth potential where we could positively impact quality of life. From 2004 to 2014, while still part of the Danaher Corporation, we strategically acquired 30 innovative dental companies that lacked the necessary scale. By 2015, under my leadership, we embarked on a mission to integrate these companies, sharing a unified vision for the future. This journey culminated in our decision to separate from Danaher, creating Envista with a clear goal: To democratize dental care by leveraging digitization to reduce waste and inefficiency in the dental workflow and enable more personalized patient care.
Can you provide an overview of Envista's portfolio?
Envista’s portfolio is centered around four key areas: diagnostics, implants, orthodontics, and consumables. We are a global diagnostics leader, offering advanced 2D and 3D x-rays, intraoral scanners, and a unified open architecture software (called DTX) that enables diagnostics, planning, and execution of dental procedures. These tools are crucial for accurate patient assessments and the development of personalized treatment planning. Our implant business provides permanent solutions for tooth replacement. In the field of orthodontics, we offer both traditional braces and the fastest-growing clear aligner in the industry. Lastly, our consumables sector supports daily dental operations, from infection prevention to restorative and endodontic products. These four pillars enable us to offer comprehensive solutions across the dental care spectrum, and our products are used in more than 1 million practices worldwide.
How does Envista integrate its diverse businesses to offer comprehensive dental solutions?
Envista stands out in the industry by providing a one-stop solution for comprehensive dental care and needs. This approach is especially valuable to large dental service organizations and educational institutions, which prefer a single provider for simplicity and efficiency. Our integration extends beyond commercial aspects, focusing on creating a unified digital and operational platform. This integration provides streamlined diagnostics, treatment planning and execution, with the potential for robotics to play a significant role. Our goal is to establish an open architecture system that seamlessly connects every step of the dental care process, from diagnostics to treatment and restoration, aiming to significantly reduce waste and enhance productivity and predictability across the industry.
To what extent has Envista already achieved horizontal integration and digitization in dentistry? Can you provide concrete examples?
In the last decade, there has been a significant shift from traditional film diagnostics to advanced 2D and 3D imaging in dental offices, increasing the amount of information we can capture about patients' dental health. This evolution necessitates robust IT infrastructure for data storage, a challenge for many dental practices. Envista has facilitated this transition by promoting imaging and diagnostics solutions on-site, as well as cloud storage and sharing capabilities. For example, we have streamlined our portfolio to focus more on integrated systems and invested in intraoral scanners and software development. These investments led to the creation of DTX Studio, an AI-driven diagnostic software that provides treatment recommendations for implant, orthodontic, and restorative work. This streamlined ecosystem demonstrates substantial progress toward digitization.
Fully realizing the benefits of digitization in dentistry is an ongoing journey, expected to span 10 to 15 years, driven by advancements in technology, AI, 3D printing, changing workflows, and the next generation of digitally capable dentists.
Considering the premise of democratizing dental care, is there potential for lowering the costs of dental services globally?
The dental industry's high cost is a significant barrier to democratization, rooted in the extensive education and financial burden required to become a dentist. With new graduates facing substantial debt, the cost of dental services remains high to cover these expenses. Additionally, the industry is constrained by the limited number of dentists entering the field, which currently matches the number retiring.
Envista envisions addressing these challenges through various innovations, such as virtual and simulation-based training, software enhancements to improve productivity and predictability of procedures, and technologies that expedite treatment processes, like one-hour implants. By minimizing manual labor and leveraging remote diagnostic tools, and integrating and leveraging an open operating software, we aim to increase productivity, reduce costs, and make dental care more accessible. This vision for the future is essential for the dental industry's transformation, necessitating a steadfast commitment to innovation and execution amidst external pressures.
How has the pandemic impacted the dental industry and Envista's operations?
The pandemic presented an unforeseen opportunity for the dental industry and, specifically, for Envista. This period allowed Envista to optimize its operations significantly. We streamlined our capabilities, built a factory, hired 2,000 people, and ramped up our clear aligner business. This strategic shift resulted in over $100 million in cost savings and improved margins. Moreover, the pandemic accelerated the adoption of digital tools in dentistry, facilitating remote monitoring, cloud usage, and file sharing. The post-pandemic period saw a spike in demand for dental services, aided by government incentives in countries like Germany and Japan, which encouraged dentists to digitize their operations.
Looking forward, what are Envista's plans for expansion and adapting to future trends in dental care?
Looking ahead,
Envista aims to deepen its engagement with emerging markets, recognizing the vast potential in regions with low dentists per capita and burgeoning middle classes seeking dental care.
We anticipate that government initiatives, insurance companies, and private equity will play significant roles in democratizing dental care globally. Our strategy focuses on leveraging digitization, personalization, and democratization to meet these needs. In the next five to ten years, we expect to further integrate software, AI, 3D printing, and cloud technologies to streamline operations and enhance patient care. The goal is not just pain management and preventive/elective care but also predictive models that consider genetic and lifestyle factors to treat conditions before they manifest. This approach aligns with our vision of reducing costs, improving quality of life, and establishing a proactive rather than reactive model of dental care.
