BIOLASE Technology, Inc. (BIOLASE), a dental devices company, renewed and expanded its multi-year licensing and distribution agreement with Henry Schein, Inc. (Henry). As per the renewed agreement, Biolase sales and service organizations would continue to work closely with Henry in the marketing, sales and service of all professional Biolase dental laser system products, including the newly released high speed Waterlase MD Turbo hard and soft tissue dental laser system.
Distribution agreements with third parties are currently in force in Korea, Japan, China, Taiwan, Singapore and Brazil among others.
BIOLASE Chairman George V. d’Arbeloff said, “A combination of factors, including economic trends, the deterioration of credit markets and the pending launch of the new high speed Waterlase(R) MD Turbo(TM) domestically and abroad, led us to forge an arrangement with our principal marketing partner that ensures our mutual success in the coming months and years. In creating this long-term partnership for our businesses, the Board of Directors and I greatly appreciate the commitment and dedication of Henry Schein throughout this process.”
Stanley M. Bergman, chairman and chief executive officer of Henry said, “We have seen BIOLASE products help our customers build their practices with a better patient experience. We are very excited about the introduction of the high speed Waterlase(R) MD Turbo(TM) and its improved cutting speed. We remain committed to lasers in the field of dentistry and our relationship with BIOLASE.”
Additional elements of the new agreement include immediate purchases of the new high speed Waterlase(R) MD Turbo(TM) and related upgrades, initial orders for some of the new geographies in the agreement and guaranteed bi-monthly minimum purchase levels for lasers and associated equipment. The minimum purchases total $42.7 million over the initial 14-month term starting in February, and each of the two additional optional 12-month terms in the agreement have growth escalation minimums between 7.5% and 20% over actual or minimum sales, whichever is greater.
BIOLASE chief executive officer David Mulder said, “The new agreement with Henry Schein eliminates certain elements of uncertainty that were present in our past agreements. It establishes a more predictable and stable baseline revenue stream for BIOLASE, and coupled with our plans for a lower overall cost structure, we have established a solid foundation from which we can generate cash flows and long-term growth.”