Henry Schein Inc.'s (HSIC - Free Report) dental division recently entered into an exclusive agreement with Zyris Inc. to distribute its full-line of easy-to-use dental isolation products. The financial terms of the deal however have not been disclosed.
The latest agreement adds strength to Henry Schein’s efforts to expand the global footprint of its Dental arm, which currently comprises nearly 65% of the company’s total revenues.
Zyris Isolation Products at a Glance
The complete line of Zyris Dental Isolation System is considered to be unique as it provides isolation, illumination, retraction, suction, and patient safety, all at the same time. This line of solutions can enhance infection control protocols and aerosol management, thereby providing a safer and more efficient patient experience. Its hands-free, high-volume evacuator (HVE) devices, and mouthpieces connect to a dental chair’s HVE line help with a number of things including continuous suction throughout the entire procedure; retraction of the patient’s tongue and cheek and airway protection from water, blood, saliva and debris associated with dental surgery.
Specifically, Henry Schien will be the exclusive distributor of Zyris products like Isolite 3, Isovac 2, Isodry and the company’s patented single-use Mouthpieces.
Is the Deal a Strategic Fit for Henry Schien?
Amid the pandemic-driven healthcare scenario, the dental treatment sector is in need of accurate aerosol management techniques to minimize the threat of coronavirus. In such a situation, we expect this dental isolation line of Zyris to show strong customer acceptance and broaden Henry Schien’s customer base. Per the company, as dentists are gradually reopening their practices now, it is essential to offer them solutions that enhance infection prevention protocols.
Developments Within Dental Business
In August, Henry Schein One, a joint venture of Henry Schein and Internet Brands, announced an exclusive sales and marketing relationship with eAssist Dental Solutions (eAssist), a developer of a fast-growing virtual dental billing outsourcing service.
In this regard, despite pandemic-led business disruptions in the second quarter of 2020, the Henry Schein One dental software business has been progressing well. A few of Henry Schein One software solutions enabling patient engagement related to appointment bookings as well as developing and operating virtual waiting rooms has received favorable customer responses. Software sales witnessed gradual improvement as the second quarter progressed, in line with the resumption of dental practice operations.
Henry Schein also announced the acquisition of Dentally, which is a cloud-based U.K. dental software provider. Through this buyout, Henry Schein aims to expand its international presence and enhance its practice management software solution portfolio.
Share Price Performance
Over the past six months, Henry Schein has outperformed the industry. The stock has gained 20.4% compared with the industry's 14.1% growth.
Zacks Rank & Key Picks
Currently, Henry Schein carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are QIAGEN N.V. (QGEN - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Hologic, Inc. (HOLX - Free Report) .
QIAGEN’s long-term earnings growth rate is estimated at 22.3%. It currently sports a Zacks Rank #1. (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher’s long-term earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).
Hologic’s long-term earnings growth rate is estimated at 15.5%. The company presently sports a Zacks Rank #1.
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