Ladies and gentlemen, good afternoon. Welcome to the Straumann 2015 Third Quarter Sales Report Webcast and Conference Call for Financial Analysts, Investors and Journalists. I'm Selena, the Chorus Call operator. I would like to remind you that all participants will be in listen only mode and the conference is being recorded. After the presentation, there will be a Q and A session.
The conference must now be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Mr. Marco Gadola, CEO. Please go ahead, sir.
Thank you. Good morning or good afternoon, ladies and gentlemen, and thank you for joining us for this webcast and conference call on Straumann's 2015 9 months and third quarter results. I know that some of you have a busy program with other companies to cover and we appreciate that you have taken the time to join us. We will be referring to the presentation slides that were published on our website this morning. And as usual, we ask you to take careful note of the disclaimer on Slide 2 regarding forward looking statements.
I will begin with a brief review of the highlights, after which Peter Haeckel will take you through the numbers. I will follow with an update on our growth and strategic initiatives, other news and the outlook. After that, the lines will be open and we will be glad to take your questions. We will begin with Slide 4. The main news this morning is that we have succeeded in driving momentum in quarter 3, most notably in our largest market, Europe.
And bearing any foreseen circumstances, we are well on the way to delivering our full year targets. In the 1st 9 months of 2015, group revenue grew 9% in organic terms, which means excluding acquisition and currency effects. In local currencies, our growth actually reached 18%, while net revenue amounted to CHF585 1,000,000 of which CHF46 1,000,000 were contributed by Neodent. In Q3, we posted organic revenue growth of 8%. As I mentioned, the continued strong performance in Europe had a large part in this, but our best performer was Asia Pacific, driven by double digit growth in China and Japan.
From a product perspective, our new generation bone level tapered implant was a key growth contributor and is now available in more than 50 markets across 6 continents. Since the initial launch roughly a year ago, we have sold more than 100,000 bone level tapered implants. To mention 3 strategic highlights, we have made further progress in unlocking emerging markets, opening a subsidiary in Russia, completing our new distribution model in China and opening hubs to serve a number of new markets in Latin America. So, we are looking forward to realizing these and other exciting growth opportunities. On the basis of our performance so far this year, I can comfortably say that we are well on track to delivering our fully organic growth and EBIT targets.
And with that, I would like to hand over to Peter for the performance details.
Thank you, Marco, and good morning or good afternoon, everyone, from my side. Looking at Slide number 6. You can see on the left that our 9 month revenue in 2014 would have been CHF 28,000,000 lower at this year's currency rates. The negative currency effect was due mainly to the sharp depreciation of the euro after it was unpacked from the francs by the Swiss National Bank in January. The acquisition effect added CHF43 1,000,000, bringing the adjusted 2014 revenue to CHF 539,000,000 Using this as a comparison base, our net revenue in the 1st 9 months of 2015 increased nearly 9% in organic terms.
You can also see that all our regions developed positively with the largest contributions of €14,000,000 in each case coming from Asia Pacific and EMEA. As Marco mentioned, APAC was also region, delivering double digit growth both in Q3 and over 9 months. In spite of the sluggish economy in its key market Brazil, Latin America still managed to register healthy organic growth of 9% over the 1st 9 months. The next two slides give you some more details on the regional performances in Q3. In Europe, the Middle East and Africa, organic growth reached 9% and was fueled by double digit increases in Iberia, France and Sweden.
Austria, Italy and the region's largest subsidiary, Germany, all performed well. We are pleased with the positive uptake of our HOTES biomaterials range. And having completed our 1st year of distribution, we have clear evidence that our strategy is paying off and that the comprehensive range of GBR product complements our implant business extremely well. In North America, revenue continued to grow solidly at 6%, albeit slower than in the previous quarters. This mainly reflects the strong comparative quarter in the prior year when revenue grew 11%, benefiting from the launch of BLT.
This year in Q3, we saw pleasing developments in our business with clear jaws, and I'm glad to say that Straumann and Neodent now account for 80% of the implants placed by the clinic network and the upward trend continues. Asia Pacific has posted fairly consistent mid teen distribution network in China. The leading growth contributors in Q3 were China, which continues to develop dynamically and Japan, where we believe we gained further market share, thanks to SELActive and our bone level implant. In addition, BLT made an initial contribution to sales having recently received marketing clearance. Moving on to Latin America and the lower chart in Slide 8.
The growth rates shown for 2014 include both Straumann and Neodent on a pro form a base, so that you can make a meaningful comparison with 2015. The dental markets in the region are suffering from the weak economic environment and political uncertainty. The tooth replacement markets in Brazil have been sluggish throughout the year and helped the region back in Q3. Nevertheless, we still managed to improve modestly on the strong comparative period of 2014 when business resumed after the Soccer World Cup. During our first half road show, we received several questions expressing concern about the possible impact of the economy on the dental markets in Brazil.
My response to this is that predictability in our business is generally low, and it is difficult to make projections in the current environment. However, we believe that based on our current figures, the rollout of BLT in Q4, our geographic expansion and our new CATKAM CAM business in Latin America, our growth will improve in the remainder of the year, providing that the business climate does not deteriorate further. Looking at the business performance by segment on Slide number 9. Growth was driven mainly by implants, including RockSolid and BLT. 2 thirds of our growth in the 1st 9 months were generated by implants.
The restorative business, including Capgem Prosthetics and Digital Equipment, posted another quarter of robust growth. Demand was especially strong for customized debottments and barrier base. Straumann's fastest growing business has been Biomaterials, driven by the rollout of the Bootes range in Europe and the success of our new regenerative solutions sold in the U. S. Under license.
And with that, I'll hand back to Marco. Thank you, Peter. Please turn to Slide 11.
With the acquisition of Neodent and the growth of our premium business, Latin America has become an increasingly important part of our global business. It generates more than 10% of our revenue and a quarter of our employees are based there. In volume terms, it is one of the largest regions and still offers considerable opportunity for further growth. Because of this, we have decided to include the Head of our Latin American region, Matthias Schupp in the Group's Executive Management Board with effect of January 1, 2016. Matthias has been at Straumann since 2007 when he joined us from Procter and Gamble as Regional Manager of Western Europe.
In 2013, he was appointed Head of Sales LatAm and joined the management of Neodent, of which he became CEO earlier in 2015. He is Chairman, aged 50, and has a strong track record in country and regional management in various industries. One strategic initiative that Matthias and his team have been driving this year is our expansion into new regional markets. In quarter 3, we opened a subsidiary in Colombia and adapted our go to market model in Mexico. Next month, we expect to open a further subsidiary in Argentina and all three locations will serve as hubs for both our premium and value brands in the surrounding countries.
To address the large underpenetrated market for tooth replacement in Russia, we have opened a subsidiary in Moscow, which gives us greater control over the business. Russia is an attractive market, but investment is needed to expand our business. We are therefore adding sales personnel in addition to incorporating our former distributor and his team. We have also been investing in Asia, as you know. As you can see in Slide 13, our new milling center in Narita near Tokyo has just gone into operation.
This is our first production facility in Asia and it enables us to offer customers in Japan CAT CAM solutions ranging from single tools to full arch restorations as well as drill guides. Production could be expanded in future to offer these services to clients elsewhere in the region. Moving on to Slide 14, I am delighted to say that our biggest expansion project to date is now complete. As we have pointed out on previous occasions, the Chinese market is underpenetrated and is expected to more than triple in the next 5 years. Having taken over distribution in China last year, we have established a network of 20 independent distributors to cover a much broader geographic spread.
We have also added more than 70 consultative sales reps of our own in addition to marketing, training and education functions. This will enable us to address the fast growing private practice sector more effectively by strengthening our leadership position in the public clinic sector. By running our own operation, we have greater control over our customer base and being closer to the market, we are able to adapt quickly. Moving on to Slide 15. For almost a year now, we have been sharing our optimism and excitement with you regarding our bone level tapered implant.
With its fast healing SL active surface and the superior strength of RockSolid, we are offering a very attractive differentiated product with broader treatment possibilities. This is why we have been able to sell more than 100,000 of the new implants in the 1st year. BSD currently accounts for 1 in every 8 Straumann implant sold and more than 4,000 customers now use it, a quarter of whom are new customers. And you can see some of their reactions in our video report from the EAO at the link shown at the bottom of the slide. In recent years, there has been a marked increase in the popularity of simple cost effective Tybase abutments, most of which are produced by copycat manufacturers.
We have responded to this trend by introducing our own Vario based family of abutments. Our aim is to ensure that patients with our implants also receive prosthetics with strong original connections, which are produced to our specifications and are covered by our warranty. The range now includes a specially designed barrier base for CEREC users, allowing dentists to produce chairside restorations with stronger connections. We have just entered an agreement with the owner to ensure that our Vario base is fully supported by the CEREC system, which will be the case when the software update is completed early in 2016. We are pleased to say that we are the 1st premium implant player have such an arrangement with Sirona.
In addition, Sirona lab customers will be able to use Straumann's centralized milling option as a trusted partner in Sirona's in lab workflow. Slide 17 shows you how the Vario base for CEREC and other products that we have introduced this year support our strategy to be the total solution provider in tooth replacement for dentists and labs. Turning on to Slide 18. At the EOD this year, new data were reported from a large retrospective study of patients treated in Sweden with dental implants produced by various companies. 427 patients with 1578 implants were evaluated the occurrence of peri implantitis.
The outcome was very favorable for our implants and the lead author Doctor. Jan Dergs noted that strong implant showed the lowest rates of early implant loss and presented with lower rates of moderate or severe peri implantiasis than other implants evaluated in the study. The new data have been accepted for publication in the Journal of Dental Research and we are excited about sharing this news with dentists and patients around the world. Looking at Slide 19, we received some positive news yesterday from the International Trade Commission in the U. S.
With regard to the patient patent infringement claim brought by Noble Biocare against InstaDent and Neodent. The ITC charge has determined that the main patent relating to key features of the novel active implant design is not valid. The good news for customers is that we can continue to sell Neotense attractively priced high quality alternative to Noble Active in the U. S. And that brings us to Slide 20 and our outlook, which is of course barring any unforeseen circumstances.
In summary, we have not changed our guidance. Based on the development so far, we expect full year organic revenue growth to be in the mid to higher single digits. And despite investments, we expect our operating profit margin to be in the low 20% range. And follow-up questions to 2 and then to rejoin the queue. So operator, can we have the first question please?
We will now begin the question and answer The first question comes from Mr. Michael Junglin from Morgan Stanley. Please go ahead.
I have two questions. Firstly, on the sales growth guidance and then secondly on Brazil. On the sales growth guidance, I'm confused why you would still leave in your guidance the word mid to higher single digit growth because effectively the mid sort of implies to me that the Q4 could be a very weak quarter. If it's mid for the full year, it'd be somewhere in the area of 0% growth and that would be tragic, I would imagine, for the share price. So why have you chosen to leave the word mid in there?
Are you guiding us down for the Q4? Question number 2 is on Brazil. How much of the slowdown in your business is the economy? And how much do you think the lower number of selling days impacted sales growth in the Q3? Thank you.
Maybe I can take the first part of the question and Peter, you can take the second part on Brazil. Very valid point, Michael. We are not expecting a weaker 4th quarter. To the contrary, Brazil, for example, we expect clearly a stronger Q4 or in general Latin America compared to the Q3. So, I agree with you this mid expression is quite misleading.
So, we may consider to now it's already the 4th quarter we come up again, so we cannot change it for the next quarter. But I think it's a valid point. So it's kind of misleading. We are not expecting a weaker 4th quarter.
And before we answer Brazil, just a follow-up on that. So when you say a stronger Q4, you mean the organic constant currency growth rate would be stronger than what you've observed in Q3?
For Brazil?
For Brazil. And just
I just mentioned Brazil and Latin America in general, yes.
What about for the Q4 then?
We don't guide on a quarterly basis. I just wanted to follow-up on what you just said. So we are not expecting a 4th quarter, which would actually bring the full year growth rate down to 5%.
Understand. Thank you. And then Brazil itself, please, economy selling days?
So I take the questions on the selling days in Brazil. If you look at the Q2 this year, there we had 3 more selling days. In the Q3, we had one less selling day in Brazil. So you can make the math, but that will not have a material impact on the growth rate. I think the more important fact is to consider that comparative base in 2014 was a very strong base because business resumed thereafter the World Soccer Championship in the Q2.
And as I have laid out in my comments, we expect again a tick up of the growth rate in the Q4 in Latin America due to several initiatives that we started. On the one hand, the launch of the BLT implant, the start of the CATfam business in Brazil, the expansion projects in Colombia and Neolens business in Mexico as well.
And final follow-up on the Brazil part of the business. Should we be concerned that now that you've taken control of Nudent that a Swiss company owning a Brazilian company with perhaps some lack of Brazilian knowledge of the founder is perhaps starting to have a temporary negative impact on that business?
The founder is still the President of the Board. He is still employed by the company in his function as medical advisor and in charge of development product development as well as training and KOL management. So, he is still heavily involved in the areas where we feel he can best contribute to the future of the company.
Great. Thank you.
The next question comes from Anasuya Sharma from JPMorgan. Please go ahead.
Good afternoon. Thanks for taking my questions. I have 2. Firstly, Q4 in Europe is going to have quite a difficult comp given the VAT increase in Spain last year. What are your expectations for growth in Q4 in Europe?
And secondly, how permanent is the distributor change impact in Latin America? Has that sort of washed through? Can you give us an estimate of how much of that impacted the LatAm organic growth in Q3?
On your first question, you're right. We had a very strong Q4 in Europe in 2014. However, we also believe that the Q4 of this year will actually be will be solid. We just launched in the Q3 BLT in many countries in Europe. So this will actually help us to also deliver a strong Q4 in Europe.
Will it be as strong as the second and the third one? Today, obviously, it's too early to comment on this.
Your second question was about the impact of a change in distributors in Brazil. Neodent stopped the relation with the distributor they had within Brazil and took over their business by themselves. That has a certain temporary negative impact on the growth rate in the Q3, but that will was also only a temporary impact because during that transition, the old distributor had sell off with inventory and we had to transfer the customer relationship. There won't be a negative impact in the Q4 again due to that fact. The order of magnitude of that impact was a low around 1 percentage point on the growth rate in the Q3.
Okay, perfect. Thanks for that.
The next question is from Mrs. Carla Benfiger from Bank Vontobel. Please go ahead.
Good afternoon. Could you maybe comment a bit on the China destocking effect? Is it correct to assume that you have not seen it yet and that we will see that now going forward in Q4? And maybe a follow on on the BLT question regarding Europe. As far as I know, you didn't roll out BLT just at the beginning of the quarter.
Could you maybe give us a bit of feeling how much of the growth is related to BLT and how much is just the general market situation and the big bang initiative? Thanks.
So I'll take the first question concerning the destocking impact in China. We already have seen part of that impact in the Q3. Our new route to market was completed at the end of the Q3, so we expect a bigger impact on the 4th quarter due to that destocking impact. However, we cannot really control that because that is under the control of the former distributor, And we don't have a full transparency how much he has already sold off and how much he's going to sell within the next couple of weeks.
And on your question in terms of how much of the growth is related to BLT. Honestly, I cannot give you a precise number. The only thing I can tell you is that obviously has contributed positively to the development. Based on the numbers of competitors who commented on their development in Europe. We have clearly gained share in Europe in Q3.
I cannot tell you because there is obviously also some cannibalization for between bone level straight and bone level tapered, especially in markets like Spain, like Italy or France. So, just to isolate how much is really purely related to the BLT in launch and how much is has been the impact of cannibalizing the existing bone level straight vault franchises is not possible. But obviously, it has very positively contributed to the growth in Europe.
Okay. Thanks.
Next question comes from Mr. Yi Dan Wang from Deutsche Bank. Please go
ahead. Thank you very much. It's Yi Dan from Deutsche Bank. Just a quick question on the BLT. Very interested in hearing you saying that 4,000 customers use the product.
Can you give us some sense of what the penetration of the product is in your existing customer base, so excluding the 1,000 or so new customers that you have there? And then secondly, what percentage of your revenues do the 50 countries that already have BLT account for as a percentage of the group? And thirdly, I think when you launch the bone level straight implants, you had you benefited from that for a few years. Can you give us an update of what the penetration of that product is now? That would be great.
Thank you.
Yes. What I can tell you, Yi Dan, is that out of the 4,000 BSD customers roughly 1,000 are new customers. So this number we can obviously share with you. I am honestly, I'm a little bit reluctant to tell you how many active customers we have. I don't want to disclose this information.
But obviously, 3,000 of our existing customers have already purchased BLT, which is still a relatively low percentage of our customer base, but I cannot give you an exact percentage there. Your second question was, can you repeat that one on the boat level straight? Also here, it's actually it's more than 40%, let's put it that way. So more than 40% of our customer base is using a bone level tapered implant and are now combining the straight with the tapered one. And our key product still and sometimes we forget to mention this fact, our key product still is the tissue level implant.
So still more than 60 obviously some hardcore tissue level believers who will never who would never and will never place a board level implant. And when you look at what I just commented during the presentation that the DIRKS study and the peri implantitis issue, obviously, the tissue level implant is when it comes to preventing peri implantitis still by far the best clinical option. And your third question was sorry, can you repeat that one?
Yes. So it was relation to the again the bone level tapered implant? Just to follow-up on that before
I go to the third question.
Are you able to at least tell us what proportion of your implant revenues these 4,000 customers or the actually, I'm more interested in the 3,000 customers that you already had contributed to the group? And how long do you think it would take you to cover the rest?
What I can tell you, YiDang, is that it's roughly 12% of our implant volumes, which we have sold throughout the 1st 9 months of bone level tapered implants. So this information we can share with you.
Right. So you're not able to tell us like the proportion of your revenues coming from the 3,000 existing Straumann customers. It's okay if you can't tell us. No, obviously, it's an interesting number.
This is the information which will contribute to anything because at the end we have as I pointed out before, we have some cannibalization between bone level straight and bone level tables.
Okay. All right. I'll take it offline. Thank you.
Okay. Thank you. Next one.
The next question comes from Chris Greeter from Credit Suisse. Please go ahead.
Thank you. Good afternoon. Just two questions. Hi, Marco. Basically, on Europe, if I remember right, in August, now you were still a bit more cautious with respect to these growth trends.
And now in Q3, it was even better than in Q2. Basically, what has been so which country or which basically customer group or so? What has been particularly strong relative to your expectation back then? The second question is on North America. Basically, I think Peter mentioned that 80%, if I got that correct, 80% of implants to now clear choice are now yours.
So it seems like the pickup there has now gained momentum. And I acknowledge that there was a much tougher comparison base in Q3 versus Q2. But basically, are you satisfied with the growth pace that the organization has over there? That will be it.
Okay. Your first question, very strong performance, much better than expected came out of Spain and of Italy. We had an incredible Q3 in Spain and also the Italian business developed much stronger than what we would have anticipated. And the 3rd country, which really developed extremely strong in the Q3 was France.
And do you think that this is market related or is it in your
No, it also has to do obviously with the bone level tapered launch. Spain, Italy, but also France are tapered markets. So much more than, for example, Switzerland or Germany. And it obviously has helped us to gain share and to drive growth. You have to be cautious in Spain and I think it has already been mentioned during the call, the VAT change in Spain as per January 1, 2015 triggered an extremely strong Q4 in 2014.
So we have to be a little bit more cautious when we look at the Q4, especially when it comes to Spain. On the U. S, are we 100% happy? Honestly, no. I think we could even perform better.
Fact however is that we gained again share also in the Q3. And like in the second one and for the second one, we know that for sure due to the based on the DIMDC data, so the market data, the market share data developments which we have. But we believe that also in the Q3 we gained share. It has been mentioned that the comparable basis, so Q3 2014 was high. We grew by 11% in Q3 of 2014.
But to be 100% honest and straightforward, is 6%, are we fully happy with that? I think its potential is even higher. So we could even have grown more if we would have completely our act together in the U. S.
It's kind of interesting to see that now actually, no, it's no I mean, except Latin America, no, it's actually the slowest growing part your company, so which I mean to me is a bit surprised.
Yes. On the other hand, 6% is also not too bad. Hello. Still have been all extremely happy with the 6% growth in the quarter in North America. But to honestly and openly answer your question, I personally believe there is even more potential for us.
No, I mean, we are complaining on high levels. I fully acknowledge. Thank you.
The next question comes from Veronika Dubajova from Goldman Sachs. Please go ahead.
Good afternoon. This is Meg Treynor on behalf of Veronika Dubajova. I have two questions. The first is, could you please discuss how you're thinking about your capacity for M and A while you're still integrating the NeuGen business? And could you possibly suggest which areas might be of most interest to you given your current footprint?
My second question is just following on from your previous commentary on the U. S. Market. If you could possibly give us an update on the progress of your partnership with Paterson? Thank you.
On M and A, the Nail Den business is fully integrated already. So that's actually a normal course of business. So there is there are no construction sites anymore when it comes to other pieces of our business. So, that's like all the pieces of our business. So, that acquisition has been digested.
When it comes to future M and A activities, it's always highly speculative to talk about M and A projects, because at the end, the decision to sell a business is not triggered by us. That's always the other party. So, obviously, there are still some interesting assets, which might come to the market at one point in time. And in case this will be the case, then at least at these assets, we will have a deep look into. So, in other words, we are not just sitting still and are actually taking the position that whatever comes to the market in terms of interesting M and A opportunities we will pass on.
To the contrary, we are we would be eager to have a look at it. On your second question on the U. S, the partnership with Patterson, also here, I'm straightforward and clear. It has not delivered yet up to what we expected initially. When we entered into the partnership and the contract with Paterson, We are currently in discussions with Paterson Management in terms of changing the model and potentially rewinding it and changing it, so that at the end, the corporation will yield benefits to those parties.
But so far, the expectations have not been met yet.
Thank you very much. That's very helpful.
We have a follow-up question from Mr. Michael Jungling. Please go ahead.
Thank you. I have 2 more questions. On Europe specifically, do you think it is possible to grow organically in the Q4? Secondly, when it comes to M and A, the headlines show that MIS is potentially for sale. Is that a business that you would look at?
And then I have a new question, but perhaps those 2 first.
Okay. Sure. Absolutely, we believe that it's possible to grow organically in Europe in Q4. Yes, we would not be happy if we would see negative growth coming out of Europe. You know, VLT is a potential of VLT has by far not yet been exploited.
On your second question, yes, we also know that the owners of MIS are potentially considering to put this asset on the market. MIS is an attractive asset. We are talking here roughly 900,000 to 950,000 implants at the global scale. So obviously, this is an asset we could not just say we don't look at. It would actually help us to live up to our ambition to also in the value segment become the number one company globally.
And then a question on Neodent. Can you comment on the success that you've had so far in Southern Europe and in the US, excluding ClearChoice, the implementation of Neodent as a second brand in those markets?
We have been extremely successful with the Neodent portfolio in countries like Italy, Spain, Portugal and the U. S, that's where we have our direct incident sales force marketing the Neodent product range. When it comes to full arch restoration, this type of indications, we have, for example, also gained a large chain in Italy just recently. Not the same size as ClearChoice, but also substantial volumes. This chain is doing more or less the same work ClearChoice is doing in Italy.
And we also are gaining or have gained larger accounts besides Neodent in the U. S, besides ClearChoice in the U. S. And also in Spain. So we see that Neodent is for many large specialists when it comes to full large restorations a very good alternative to for example the novel Biocare range.
So, would you assess that and then that the Neodent strategy of a second brand is working for you? Have you gained confidence? And will you roll it out further?
Oh, yes. Absolutely. As mentioned, we are going to sell the Neodent range in Colombia, in Mexico. And we are also looking at other markets like China, like Russia, like also India. We are looking at other markets in Europe.
So, we believe that Neodent has the potential to become a global brand based on our experiences so far in the countries I just mentioned before. And it's not necessarily interestingly enough, it's not because of the price, it's because of the product features primarily. The price obviously also then helps to close the deal, but from a pure product feature point of view, many of our customers, they tell us this is a much better product than many of the competitive products they used to work with before.
That's very helpful. Thank you.
Last question.
The last question comes from Yi Dan Wang. Please go ahead.
Okay. Just a quick follow-up on the on your comment just now on Neodent. As you look at these businesses, can you comment on what the net benefit to your business of having Neodent and also having the Straumann brand? So taking ClearChoice as an example previously was a pure premium priced account. And now it seems that Neodent is contributing quite significant or it's taken up quite a significant portion of the volume.
So if you could comment on that, that would be great. Thank you.
Obviously, the Clear Choice account was not our account before. So everything we sell into Clear Choice independently of the mix, if we sell Straumann or Neodent is incremental revenue and incremental gross margin and EBIT for us. So for us this is actually a great opportunity. Obviously, the price ClearChoice pays for the Neotend implants, we assume we don't have transparency on that, but we assume that they don't pay the same price for implants as they used to pay for the implants of the former incumbent.
Okay. Perhaps would you be able to give us the mix of the volumes between that you're getting between the Odent and the Straumann brand in the Clear Choice accounts?
I can give you an indication and can tell you that actually the majority of the implants you sell into Clear Choice are still nails
on implants.
Okay. Yeah. So basically for what I'm more interested in finding out is that as we observe you continue to expand the Neodent brand, should we expect that as the market develops more and more of the volume will go to Neodent go to the Neodent brand versus the Straumann brand? Or is this purely really a full arch restoration product?
No. Obviously, you cannot compare Neogen to Straumann. We have, for example, from a material point of view, we have rock solid, the FDSL active surface. We have now 10 year clinical studies on some of our implants. We have the tissue level implant, which is still more than 60% of our volumes.
There is and that's also what we see in actually the customer platform of our InstaDent customers or Neodent customers, there is very little cannibalization between Neodent and Straumann. So what we actually sell under the InstroDent umbrella is incremental revenue for us. So it's not cannibalizing the Straumann franchise.
Okay, great. Thank you.
Okay. So, thank you once again for your interest and participation in this call. If we were not able to answer all your questions, please contact our Investor Relations department. You can find our reporting and events calendar at the end of the presentation. And in particular, we would like to draw your attention to our visit today in Brazil on the 2nd December when Neodent will open its doors with investor community for the first time.
This will give you the opportunities to see its implant and CAT scan manufacturing facilities in Curitiba and we hope very much that you can join us. So, until we meet next time, I wish you a pleasant day and goodbye. Thank you.
Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call and thank you for participating in the conference. You may now disconnect your lines. Goodbye.