With the new policy to reduce senior patients’ payment for dental implants, companies are raising expectations for sales growth from the third quarter.
Major dental implant companies in Korea are Osstem Implant, Dentium, and Dio. Except for the market leader Osstem Implant, the two firms suffered a decline in sales this year.
Osstem Implant’s domestic sales in the second quarter increased 7.5 percent from a year earlier to 51.7 billion won ($45.6 million), out of its total revenue of 112.7 billion. However, those of Dentium and Dio fell 14.3 percent (11.4 billion won out of 47.3 billion won, and 26.2 percent (9.3 billion won out of 23.2 billion won), respectively, over the cited period.
In the first-half performances, too, Osstem Implant’s revenue went up 14.3 percent. However, those of Dentium and Dio declined 10.1 percent and 6.6 percent, respectively.
As the insurance coverage for dental implants started to expand in July, patients delayed receiving procedures, which led to a decline in local sales, observers said.
Osstem Implant, however, is confident about competing against rivals, as its flagship product TS3 showed robust sales growth in the first half.
“Our sales surged in the first half. Considering the positive effect of the healthcare policy in the second half, we will be able to enlarge our market share,” an Osstem Implant official said.
As of July, the government cut down the senior patients’ payment for dental implants from 50 percent of the cost to 30 percent. The senior is defined as people aged 65 or more.
Analysts said the policy would benefit dental implant companies, along with the population’s aging.
As of Wednesday, Osstem Implant’s stock price plummeted 25.7 percent to 43,900 won, compared to 59,100 won on Jan. 2. During the same period, Dentium also plunged 26.6 percent to 83,300 won, and Dio, 22 percent to 27,550 won.
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