Dental Products Market Analysis – August 2014

Geographic expansion and advanced technology help drive acquisitions in the dental products market.

The dental products market is expected to grow at an annualized rate of around 7%, reaching $27.6 billion by 2015. The market for dental implants and dental biomaterials is expected to grow at 6% and 10.5% respectively from 2010 – 2015.¹

Revenue multiples are currently tracking at a median of 1.9x, while EBITDA multiples have a median of 13.9x. Since 2012, these have seen 73% and 31% increases, respectively.

Since the acquisition of Astra Tech by DENTSPLY in August 2011 and the acquisition of BioHorizons by Henry Schein in December 2013, there has been further consolidation among the top players in the market. In April 2014 Zimmer announced an agreement to acquire Biomet for $13.4 billion. Two months later, Nobel Biocare, the world’s second-biggest maker of dental implants, announced a possible sale of the company.

Pharma Business Services Industry Perspective – August 2014

Changing dynamics in the pharmaceutical industry are driving a growing demand for outsourced services.

Research and Markets valued the global healthcare business process outsourcing (BPO) market at $92 billion in 2013. The market is expected to reach $188 billion by 2018, growing at a CAGR of 10.8%. The industry for outsourced business services includes payer, provider, and pharmaceutical outsourcing segments. Of these, pharmaceutical outsourcing represents the largest segment. Within the pharmaceutical outsourcing segment there are clinical research organizations (CROs), contract manufacturing organizations (CMOs), and companies that provide non-clinical, business support services.

Pharmaceutical business process outsourcing groups provide non-clinical services such as medical communications, marketing, operational and analytical support, and compliance and regulatory services. When it comes to drug development, the process from initial analysis of the opportunity to bringing the drug to market involves several steps. There are opportunities to outsource elements of each one and many pharma services companies are well equipped to take on several of them.

According to KPMG, the most highly outsourced steps within the drug development process are discovery, development, and launch/marketing. Regulatory support is also a key across each one of the above steps, and is increasingly being outsourced as well.

Areas expected to experience the most growth in the near future include marketing, sales analytics, drug development support and compliance and regulatory services. These represent areas that are less functional in nature, and more strategically important.