3D Systems last week announced a comprehensive strategy for the dental market, and the implications are interesting.
The company has been challenged to become profitable over the past several years, and has taken a number of steps, including some notable reductions in expenses.
Over the past several years they’ve done significant work in the healthcare area, offering specific hardware and software solutions for that industry.
The company has done significant business in the dental sector for many years, but the latest announcement seems to suggest they’re doubling down on this industry. They write:
“3D Systems announced its expanded focus and technology roadmap tailored to deliver the largest range of solutions for a growing digital dentistry market. The portfolio will include solutions for alignment, protection, repair, and replacement of teeth – the broadest portfolio available from any additive manufacturing solutions provider.”
In addition they revealed that they’ve secured a contract to produce clear dental aligners through 2028, which amounts to a massive near-quarter billion dollar deal. This alone caused the company’s stock price to jump upwards significantly, as we discussed in our weekly 3D print company leaderboard report.
3D Systems already had a pretty good set of products and services for the dental market, but now they are adding new services, such as the production of personalized night guards. They expect that the use of night guards will dramatically increase over the next several years, and they will be right there ready to address that need.
Dental has always been a sweet target for 3D printer manufacturers due to the need for personalized products and the expectation of relatively high cost products. Because of that there are many dental 3D print solutions on the market.
However, 3D Systems appears to be implementing an interesting strategy: provide as much function as possible. This could be a very interesting approach, as it leverages existing customers. Consider the case where an existing dental client now wants to add another 3D printed service to their operations. It would be far, far easier for them to just add more products from 3D Systems than it would be to organize use of a competitor’s products.
I believe 3D Systems just might finally break through their financial challenges with this new and expanded dental strategy.
Via 3D Systems
