BIOLASE Enters Affiliation Agreement With Sun Dental Laboratories, LLC
Strategic Partnership to Leverage Sun Dental Labs' Significant
Customer Base as Market for BIOLASE to Sell Trios Intraoral Scanners
IRVINE, CA -- (Marketwired) -- 05/07/13 -- BIOLASE, Inc. (NASDAQ:
BIOL), the world's leading dental laser manufacturer and distributor,
announced today that BIOLASE has entered into an Affiliation
Agreement (the Arrangement) with Sun Dental Laboratories, LLC ("Sun
Dental Labs") to form a strategic partnership to sell the Trios(R)
family of intraoral scanners ("IOS") manufactured by Copenhagen-based
3Shape A/S. BIOLASE(R) is currently a non-exclusive distributor for
the Trios IOS in the United States and Canada, and in negotiations
for additional distribution internationally.
Federico Pignatelli, Chairman and Chief Executive Officer of BIOLASE,
stated, "We are extremely pleased with the opportunity to partner
with Sun Dental Labs, which currently has thousands of doctors
utilizing their digital dental laboratory network in the United
States alone. Their significant customer base represents nearly a 5%
market share of the dental offices in North America. This is a
tremendously valuable network and Sun Dental Labs has already
provided our sales force with several qualified referrals."
Under the Agreement, BIOLASE will provide the primary inside and
outside sales teams, installation and training services, and
after-sales support. Sun Dental Labs will provide access to its
expansive customer base of dentists and dental laboratory associates,
provide marketing material, schedule appointments for BIOLASE sales
representatives, and provide a rebate to BIOLASE Trios owners who
utilize its services. All IOS sold under this Arrangement will be
pre-programmed with Sun Dentals Labs' direct connect as the preferred
In consideration of this marketing alliance, BIOLASE's Board of
Directors granted Sun Dental Labs an initial warrant for 500,000
shares of common stock on April 26, 2013, at the market closing price
of $5.90 per share. The warrant will vest based on performance at a
rate of 1,000 per each Trios IOS sold in conjunction with the
Agreement. For the purposes of this Agreement, a sale is defined as a
Trios IOS that has been installed at the customer's place of business
and is fully operational, where the customer has been trained, and
the Trios IOS has been paid for in full by the customer. Any unvested
warrant shares will expire on April 24, 2014.
Fred Furry, Chief Operating Officer and Chief Financial Officer of
BIOLASE, said, "This presents a sound opportunity for BIOLASE. Not
only will this generate incremental sales of Trios IOSs, but it will
also create prospects for our core WaterLase(R) and diode laser
products, as well as our CBCT digital imaging equipment at hundreds
of high-tech dental practices. This warrant is purely
performance-based. By way of example only, if the Agreement
ultimately results in 500 Trios IOS's being sold over the next 12
months, then it would translate into approximately $16 million to $20
million in gross revenues and contribute significantly to the cash we
generate from operations over the next 12 months."
"Sun Dental Labs' preference of the warrant over a conventional
commission or discount also demonstrates the conviction that Sun
Dental Labs has in BIOLASE and the potential value Sun Dental Labs
sees in our stock. The warrant will also preserve BIOLASE's full
margin on the Trios IOS product line. The Agreement will also give us
an entry into the high-tech dental practices currently serviced by
Sun Dental Labs," concluded Furry.
Chuck Stapleton, Vice President of Global Operations of Sun Dental
Labs stated, "We have leveraged 3Shape's superior scanning and
software solutions into our dental technology manufacturing to
streamline productivity, decrease costs, and improve quality. We
believe that with BIOLASE supporting the Trios IOS, it will be just
as successful for the clinician in the dental office."
The Trios digital solution, which includes a hand-held scanner,
operator's control cart, and intuitive software, provides faster
impression taking, improved accuracy and clinical results, reduced
need for retakes, and less adjustment and grinding. Trios' unique
features include spray-free scanning, high accuracy optimized for an
extensive range of indications, clinical scan validation, online
communication with the dental laboratory, intuitive Smart-Touch user
interfacing. Color and laptop versions of the Trios were introduced
in the 2013 first quarter.
About Sun Dental Laboratories, LLC
Sun Dental Laboratories, LLC is
the leading provider of high-quality restorative dental products for
doctors and labs around the world. Sun Dental Labs is a full-service
dental lab using ADA Certified materials and the latest restorative
options fabricated with state-of-the-art technology. Sun Dental Labs
considers itself a leader in the dental technology space with its
branded portfolio of products that includes Sunflex(R) flexible
partial dentures, Suntech(R) Full Zirconia crowns and bridges,
Sunstone(R) Digital Models, and Suntech Custom Implant Abutments, to
name a few.
To learn more about Sun Dental Labs' products and services, please
About BIOLASE, Inc.
BIOLASE, Inc. is a biomedical company that
develops, manufactures, and markets lasers in dentistry and medicine
and also markets and distributes dental imaging equipment; products
that are focused on technologies that advance the practice of
dentistry and medicine. The Company's laser products incorporate over
340 patented and patent-pending technologies designed to provide
biologically clinically superior performance with less pain and
faster recovery times. Its imaging products provide cutting-edge
technology at competitive prices to deliver the best results for
dentists and patients. BIOLASE's principal products are dental laser
systems that perform a broad range of dental procedures, including
cosmetic and complex surgical applications, and a full line of dental
imaging equipment. BIOLASE has sold more than 22,500 lasers.
Other products under development address ophthalmology and other
medical and consumer markets.
For updates and information on WaterLase and laser dentistry, find
BIOLASE online at www.biolase.com, Facebook at
www.facebook.com/biolaseinc, Twitter at www.twitter.com/biolaseinc,
Pinterest at www.pinterest.com/biolase, Linkedin at
www.linkedin.com/company/biolase, Instagram at
www.instagram.com/biolaseinc and YouTube at
BIOLASE(R) and WaterLase(R) are trademarks of BIOLASE, Inc.
Suntech(R), Sunflex(R), and Sunstone(R) are trademarks of Sun Dental
Trios(R) is a trademark of 3Shape A/S.
For further information, please contact:
Porter, LeVay & Rose, Inc.
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