Biolase Technology and Henry Schein have amended their licensing and distribution agreement, the companies announced. Within the U.K., Australia, New Zealand, Belgium, Luxembourg, Netherlands, Spain, Germany, Italy, Austria, and North America, all dental sales will continue to be provided exclusively through Henry Schein.
The new purchasing arrangement provides for minimum purchase commitments for laser equipment totaling $18 million over a 12-month term, plus a large portion of additional laser equipment sales generated by Biolase's increased focus into the additional accounts not traditionally focused on by Henry Schein. In addition, Henry Schein will purchase other categories of products, such as consumables, parts, and services as needed, without any minimum or cap.
"For perspective," Biolase said in a press release, "the total nonlaser revenues of Biolase for 2009 were $11.6 million. Under the previous agreement, minimum purchase commitments totaling $42.7 million for all laser equipment, products, and services in all applicable markets through the 14-month period ending March 31, 2010, will be satisfied."
"Since partnering with Henry Schein in 2006, our sales of diode lasers, consumables, and services have more than doubled, and we have enjoyed a deeper penetration into a solid base of Henry Schein accounts," said Biolase CEO David Mulder in the release. "We expect that penetration to continue, but are looking for additional upside by rapidly expanding Waterlase penetration into the rest of the North American marketplace."
The extended and amended agreement provides for a one-year term, and either Biolase or Henry Schein may request termination of the agreement upon 60 days advance written notice to the other party. The agreement may be extended by Biolase and Henry Schein for an additional six months, upon mutual agreement.
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