Dentsply's Full Recovery Timeline Looks Uncertain as Tough Market and Competition Put Pressure

Dentsply Sirona is one of the world’s largest manufacturers of dental equipment and supplies. It has a strong presence in dental computer-aided design/computer-aided manufacturing and has long reaped the benefits of being a first mover. However, lucrative economics and a rising appetite for cosmetic procedures have attracted a large number of competitors over the last decade and put the company on defense. To adapt and compete in an increasingly fragmented market, Dentsply has invested more in Cerec, its flagship chairside workflow system. Since 2019, it has launched a new scanner, milling machine, 3D printer, and a cloud solution that integrates different parts of the workflow. The firm also expanded its partnership with 3Shape, an intraoral scanner and dental CAD/CAM software manufacturer, and enabled workflow integration. We appreciate this strategic move because Cerec has historically been a closed system, and we believe opening up its workflow could expand Dentsply's end markets and allow doctors who use third-party equipment to adopt the firm’s offerings more easily.