Henry Schein (HSIC) Baird 2024 Global Healthcare Conference summary

Dental and medical market trends

• Dental market remains stable globally, with patient visits steady and some challenges in high-end procedures due to financing and interest rates.

• Equipment sales are impacted by higher interest rates, but U.S. and Canadian markets are stable; Europe shows mixed performance with some legislative impacts.

• Australia, New Zealand, and Brazil are strong markets, with temporary slowdowns due to tax changes or incentives.

• Inflation in 2022 and 2023 created tough comparables, but no deflation is expected; pricing promotions have slightly depressed sales.

• Software business is shifting from on-premise to SaaS, providing long-term revenue stability.

Product and technology developments

• Launch of the Tapered Pro implant addresses a key product gap, with expected positive impact in the coming months.

• New product launches, including Detect AI and insurance verification tools, are gaining traction and expected to drive growth.

• Technology offerings are expanding, with a focus on AI integration and digital transformation in dental labs.

• No significant product gaps remain in the technology segment, but ongoing innovation is anticipated.

Impact of cyber incidents and recovery

• Cyber incidents, including the Change Healthcare event, temporarily disrupted claims processing and equipment purchases.

• Quick transition to new claims processors led to customer gains in the software segment, particularly for the Ascend system.

• Call centers experienced temporary overload, but the company expects to retain new customers due to rapid response.

• International recovery from cyber events lagged slightly, but sequential improvement is underway.