Biolase Technology, a medical device company of dental lasers, has amended its licensing and distribution agreement with Henry Schein, a provider of healthcare products and services to office-based practitioners.
Within the UK, Australia, New Zealand, Belgium, Luxembourg, Netherlands, Spain, Germany, Italy, Austria, and North America, all dental sales will continue to be provided exclusively through Henry Schein.
The amended agreement provides strong incentives for Henry Schein to focus on its core customer base, and the purchase minimums have been agreed based upon that focus. In addition to the Henry Schein core customer base, Biolase will have strong incremental sales and margin incentives to penetrate additional dental offices. The agreement also allows for higher sales organization incentives, financing programs and increased luminary and educational events.
The new purchasing arrangement provides for minimum purchase commitments for laser equipment totaling $18m over a twelve-month term, plus a large portion of additional laser equipment sales generated by Biolase’s increased focus into the additional accounts not traditionally focused on by Henry Schein.
The extended and amended agreement provides for a one-year term, and either Biolase or Henry Schein may request termination of the agreement upon 60 days’ advance written notice to the other party. The agreement may be extended by Biolase and Henry Schein for an additional six months, upon mutual agreement of the parties.
David Mulder, CEO of Biolase said: “Since partnering with Henry Schein in 2006, our sales of diode lasers, consumables, and services have more than doubled, and we have enjoyed a deeper penetration into a solid base of Henry Schein accounts. We expect that penetration to continue, but are looking for additional upside by rapidly expanding Waterlase penetration into the rest of the North American marketplace. We are excited that the extended agreement will expand our reach, while maintaining the strength and support of the Henry Schein organization.”