Biolase Boosts U.S., Foreign Sales to Gain
By VITA REED
Biolase Technology Inc. isn’t one of the biggest medical device companies when it comes to raw sales.
But the San Clemente-based company is one of the fastest growing, moving up a spot to No. 3 on this year’s list.
The dental laser maker posted three-year sales growth of 449.8% through June 30.
Biolase’s revenue grew to $22.9 million this year vs. $4.2 million for the 12-month period ended June 30, 1999.
Through the first half of the year, Biolase’s sales have climbed 67% to $12.4 million. Its net income of $788,000 in the first half of the year beat the prior year’s loss of $920,000.
The company says it is on track to post 2002 revenue of $27 million and the company’s first full-year profit.
Its third-quarter sales were released late last week,Biolase said it expected to post a 50% sales increase to $7.1 million vs. a year ago.
Biolase’s growth has come through the introduction of new lasers as well as improvements to current ones, according to Chief Executive Jeffrey Jones.
Biolase’s flagship product is the Waterlase, a hard- and soft-tissue laser cutting system that came on the market in 1996.
Waterlase uses electromagnetic energy to transform atomized water droplets into smaller energized water particles to remove hard and soft tissue.
“We just got a submarine approval from the FDA for root canal,” Jones said. He says Biolase’s root canal lasers can cut a tooth’s enamel, remove pulp and shape the canal in preparation for the filling.
Waterlase machines that are equipped with technology to handle root canals are called Endolase. Those that handle bone-based procedures are called Osseolase.
“We give them different settings for their hand pieces,” Jones said.
He said the company expects demand for Biolase’s dental laser technology to grow.
According to Biolase, the prospective U.S. dental laser market is estimated at $1 billion; the company projects worldwide potential to exceed $5 billion.
Competitors include Corpus Christi, Texas-based American Medical Technologies Inc., Walnut Creek-based BriteSmile Inc. and Israel’s Lumenis Ltd.
Although Biolase primarily has relied on sales to U.S. customers, it’s making some inroads into international markets, Jones said.
Earlier this year, the company got the OK to start trading on the Nasdaq Europe exchange.
“As the level of interest in the company increases, a European listing is a logical step,” he said.
In February, Biolase formed Biolase Europe, which features an ISO 9000-certified facility in Germany. That plant produces the Waterlase and LaserSmile systems. Its sales, manufacturing and service operations target Europe and adjacent regions.
“We have put in the infrastructure to sell more internationally,” Jones said.
Besides lasers, Biolase also produces what it calls specialized biomaterials for medical and dental specialties.
To keep pace with its sales growth, Biolase has boosted its company-wide staff by 20% in the past year to 118 workers. It employs 73 workers in San Clemente.
Biolase began developing and shipping laser-based dental systems in 1991; it went public in 1994.
