Business Summary 28-FEB-03
This medical technology company develops, makes and markets advanced dental, cosmetic and surgical products. BioLase Technology's principal products are water- and laser-based systems that focus on use in dentistry. The company holds patents and has received FDA clearances for applications in markets other than dentistry, such as dermatology, BLTI's business plan at the end of 2001 focused on the dental market, because of the significant market potential and the company's leading position in that market.
The company's Waterlase system produces laser pulses that rapidly energize water to remove enamel and dentin for cavity preparation (dental hard tissue). By adjusting the air-water spray level, the laser can be used for soft tissue procedures as well. The company believes its recent FDA clearances to market the Waterlase system for root canal therapy and bone applications should have an incrementally positive effect on sales growth in 2002. However, the full benefit of these clearances may not be realized until years beyond 2002, as practitioners learn to apply the technology to complex procedures.
During 1999 and 2000, to meet the expanding demands for soft-tissue and whitening cosmetic dentistry applications, BLTI designed a semiconductor diode laser system, now marketed as the LaserSmile system. The LaserSmile system incorporates a diode semiconductor laser for a broad range of dental soft tissue and cosmetic procedures. For cosmetic whitening, a special arched photon hand piece is used to direct the laser light to a full quadrant of the teeth being treated. A proprietary gel is applied to the teeth; the gel is activated by the precise wavelength of the laser. The process provides rapid activation of the gel, significantly reducing the time required for the procedure. Because of the efficiency of the system, procedures can be performed at lower energy levels, minimizing sensitivity effects on the teeth. BLTI received FDA clearance to market the laser for a variety of soft-tissue medical applications in June 1999. In 2001, the company received FDA clearance to market the LaserSmile system for cosmetic teeth whitening. LaserSmile was launched in the third quarter of 2001.
The company markets both laser systems in the U.S. and in more than 20 countries internationally, principally in Europe and Asia. Domestic sales are made through a direct sales force, while international sales are made through a network of independent distributors. BLTI also makes a wide variety of accessories and disposable products that add functionality to its two laser systems.
In December 2001, BLTI formed BIOLASE Europe GmbH (BEG), a Germany-based subsidiary. In February 2002, BEG acquired a laser manufacturing facility in Germany, and began manufacturing operations at that location. The company expects BEG and the new facility to help it expand sales in Europe and neighboring international regions. |
