If laser surgery is good enough for the eyes, why not the teeth?
That’s the reasoning behind Irvine-based Biolase Inc. (Nasdaq: BIOL), which is trying to revolutionize dentistry in the same way LASIK transformed eye surgery.
“You’d never hear of a surgeon going back to that” old way of using scalpels for eye surgery, Chief Executive Todd Norbe told the Business Journal.
Biolase is trying to smile in the midst of lagging sales, which fell 29% in the second quarter to $8.7 million, mostly because of a discontinued and unprofitable imaging business. It’s burned $6.6 million in cash in the second quarter. It had $3.7 million in cash as of June 30, compared with $8 million on Dec. 31.
The company on Sept. 5 filed to raise $9 million at 96.5 cents each.
After Norbe took over in August last year, its shares more than doubled to $2.85 in March. Since then, its shares have tumbled to 94 cents and a $20.6 million market cap.
Norbe predicted the company, which reported losses for the past four years, will be EBITDA positive by the December quarter. It employs 190 people, according to its website.
Smile!
The company estimated the market opportunity is in excess of $50 billion. Some 60 million people in the U.S. alone have gum disease. Each year, 30,000 people are diagnosed with dental cancer. About one-third of the population avoids going to the dentist because of anxiety.
“Think about it from a child’s standpoint,” Norbe said.
Biolase says it offers a drug-free alternative because the lasers are so precise that no analgesics are needed and it’s virtually painless. Additionally, the lasers actually have a “healing ability” to the enamel of teeth and “the laser goes in there and clean all of that [plaque and bacteria] in there—it creates a prewash effect, and it removes all that disease and infection.”
Biolase’s product, called Waterlase, uses a combination of water and laser energy to provide clinicians cool and efficient cutting of hard tissue, soft tissue and bone. The company said it has 153 issued patents and 80 pending patents.
Norbe has a long history in dental industry. Most recent, he was president of the North American unit of KaVo Kerr, a subsidiary of the Danaher Corp. KaVo delivers dental instruments, imaging solutions and dental treatment units worldwide. Previously, he was vice president and general manager of the Metrex Medical, Sybron Dental Specialities, which was acquired by Danaher in 2006.
Biolase, which began selling Waterlase in 1996, said it has sold 40,000 laser systems in 80 countries. Still, only about 7% to 8% of the dentists are now using the procedure. Each 1% increase represents about $60 million in potential revenue, the company said.
“We would like to see the standard of care like what it is for Lasiks,” he said.
