It was a challenging 12 months for some of Orange County’s dental companies with one filing for bankruptcy protection and another going out of business.
The Business Journal’s fifth annual list of dental companies showed that OC employee headcount decreased 5% to 5,270 as of July. Last year, employee counts remained flat.
“While staffing remains a challenge across the industry, especially for clinical roles, the outlook is optimistic,” Planet DDS Chief Executive Eric Giesecke told the Business Journal.
Local headcount at the Irvine-based provider of cloud-based dental software stayed unchanged with a Business Journal estimate of 50, ranking it No. 10 on the list.
Giesecke noted that one of the industry’s biggest challenges is the slow adoption of modern technology, which is why the firm is investing more in AI. This year, it launched AI Assist, which provides real-time analysis on patient x-rays.
This week’s list includes a varied collection of makers of implants and braces, dental support organizations, software firms servicing dental practices, as well as dentistry-focused device makers.
Companywide, employee counts decreased 6.8% to 130,638; that compares to no change last year and a 2.7% increase in 2022.
The eight companies that reported revenue collectively saw a 3% increase in sales to $6.8 billion; a year ago, they increased 2.5%.
Challenging Market in CA
PDS Health, formerly Pacific Dental Services, remained the second-largest dental company in Orange County with 1,293 employees, up 4% from last year.
“Our growth in Orange County reflects the momentum we’re seeing across the state,” PDS Health founder and Chief Executive Stephen Thorne IV told the Business Journal.
Thorne said that the company hired talent across all departments including clinical, operational and support as it expands into more comprehensive care.
Last year, it rebranded to PDS Health and moved headquarters to Henderson, Nevada.
Its support center in Irvine is still the largest within its network.
“The dental industry in Orange County remains strong, and there’s a deep talent pool here, but I’d be remiss if I didn’t say I’m concerned about the broader business environment in California,” Thorne said.
He said that California is the most challenging market they operate in due to regulatory complexity, cost pressures and workforce constraint, but that they’re “committed to continuing to serve this state.”
Market Delistings
Last October, Foothill Ranch-based Biolase Inc. filed for Chapter 11 bankruptcy. Shares were off more than 99% in the year leading up to filing.
Sonendo Inc. entered a purchase agreement to buy the assets of Biolase for $14 million but lost the bid to South Korean dental implant company MegaGen Implant Co.
Prior to filing for bankruptcy, Biolase had been struggling; it was delisted from the Nasdaq four months prior due to its share price falling below the $1 minimum listing standard.
Biolase currently has 49 local employees and 99 companywide.
“Following the integration into a new company, there was some reorganizations, and we are actively recruiting to fill multiple roles across various departments,” a spokesperson told the Business Journal.
Laguna Hills-based Sonendo, No. 8 on the list, has been struggling to stay afloat as well.
The company, known for its trademarked GentleWave root canal therapy solution, has been undergoing a financial restructuring since being delisted from the New York Stock Exchange last year. Its 2024 sales declined 8.4% to $31.7 million (OTC: SONX).
InBrace Goes Out of Business
Dropping off the list is Irvine-based orthodontics firm InBrace, which went out of business this year.
In April, several dental offices announced online that they’d stop offering InBrace’s products.
The company cited two main reasons, an inability to secure additional funding and macroeconomic challenges, for shutting down.
“Despite the progress we’ve made and the lives we’ve touched, the funding environment has presented challenges we could not overcome,” InBrace said in a message to providers.
InBrace’s invisible braces technology was co-invented by Dr. John Pham, who developed the idea for its flagship product during his orthodontics residency at the University of Southern California. Pham previously won the Business Journal’s Excellence in Entrepreneurship Award in 2022.
InBrace had about 100 employees in Orange County before going out of business. The company’s Irvine and Tustin customer center and training facilities appear to have closed, according to online reviews.
Pham didn’t respond to requests for comment.
Research Director Desmond Celo contributed to this report.
