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BASEL, Switzerland: Dental manufacturer Straumann is ceasing its sales activities for Align Technology's intraloral camera iTero by beginning of next year. Despite the discontinuation of the distribution agreement, technical support for current users of the system in Europe will be provided for at least another 12 months, both companies said last week.
Further details about the transition and its impact on Straumann’s intraoral scanning staff are expected to be released by end of this month. In a first statement, Straumann’s President and CEO Beat Spalinger commented that the distribution of a single hardware brand during the last three years did not meet business expectations and, therefore, it was agreed to terminate the agreement with Align. He said that instead of selling intra-oral scanners directly, his company will concentrate on developing its CAD/CAM system CARES, which supports the use of several intra-oral cameras on the market including iTero.
Sales of intra-oral scanners currently contribute only one per cent to its annual net revenue, according to Straumann. The Swiss company signed a first agreement with the developing company of the device, Cadent, for the distribution in European markets in late 2009. This agreement was later extended to North America, for which Straumann gained non-exclusive distribution rights.
In April 2011, Cadent was then acquired by Align Technologies, a US-based manufacturer of removable orthodontic appliances, for a sum of US$190 million.
Align announced that it will continue to market iTero on a limited basis to customers in Europe directly in the future. Distribution and support in North America, where the sales force has been doubled this year, according to the company, will remain unchanged.
Align shares at the NASDAQ stock exchange fell slightly since the announcement and closed -0.67 on Wednesday. Stocks of Straumann continued their downtrend and dropped by more than 6 cent during this week.
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