It is estimated that global revenues from dental x-ray solutions declined by a mid-single-digit (e.g. -5%) during the third quarter, relative to Q3 2019. Although OEMs reported an improvement in sales activity during the quarter, sales remained materially lower for the year. It is estimated that cumulative 2020 sales were lower by a low-double-digit (-18%), compared with the same period in 2019.
The sales contraction during the quarter and first nine months was driven by lower equipment sales across all product categories as out-patient environments such as dental clinics were severely impacted by the Coronavirus pandemic. The implementation of public health measures meant that the majority of dental clinics deferred spending decisions or delayed planned installations. Equipment OEMS including Envista (Danaher), Dentsply and Vatech all reported an improvement in market conditions during the quarter, relative to the second quarter. For these OEMs combined, sales declined by approximately USD $50m (-5.3%) during the third quarter and USD $553m (-19.8%) during the first nine months. At the end of the second quarter, Genoray announced that it had secured a large contract to supply dental x-ray equipment to a confidential partner based in China. The contract amounts to USD $23.4m across 2020 and 2021. Despite this large contract, Genoray also reported lower cumulative sales from its dental CT, panoramic and cephalometric x-ray solutions.
A number of capital raises were completed during the first nine months of 2020. In May, Envista issued USD $518m of convertible senior notes due 2025 in order to support the company’s liquidity position. In addition, Pearl, the developer of an AI-based platform for the dental industry, raised USD $11m in a Series A round. Based in Santa Monica, the company’s technology is designed to help dentists analyse x-ray images, manage data entry and generate reports. The company is coming to market with three products: “Second Opinion”, which scans x-rays and identifies pathologies and anatomy to ensure a proper diagnosis; “Practice Intelligence”, which delivers advanced analytics for dental practices and groups to deal with patients more effectively; and “Smart Margin”, which provides feedback on intra-oral scans for dental restoration and manufacturers.
Global sales growth for dental x-ray continues to be dependent on the evolution and dynamics of Coronavirus pandemic. Although outpatient environments where severely impacted during the second quarter, there are encouraging signs of a recovery trend and it is anticipated that this will continue into the fourth quarter, assuming that there is not a wide-spread resurgence of the Coronavirus. Sales projections for the Americas, mainly the United States, as well as Western Europe remain more uncertain as the risk of a resurgence is greater. The market in Asia has recovered more quickly and we are cautiously optimistic about future sales strength from this region in the coming quarters.
Extract from Global Market Sales Report
 Vatech Group, Envista ‘Equipment & Consumables’ segment, Dentsply ‘Tech & Equipment’ segment: for financial results see appendix