Biolase and Henry Schein expand licensing and distribution agreement

Biolase Technology, a dental laser company, has renewed and expanded its multi-year licensing and distribution agreement with Henry Schein, a provider of healthcare products and services to office-based practitioners in the combined North American and European markets.

Under the renewed agreement, Biolase sales and service organizations will continue to work closely with Henry Schein in the marketing, sales and service of all professional Biolase dental laser system products, including the newly released high speed Waterlase MD Turbo hard and soft tissue dental laser system – an all-tissue dental laser system – and the ezlase diode laser system.

Under the agreement, Schein will continue to be the exclusive distributor of the complete line of Biolase dental laser systems, accessories and services within the US and Canada, and will assume that exclusive role in the UK, Australia, New Zealand, Belgium, Luxembourg, Netherlands, Spain, Germany, and Austria.

In addition, Henry Schein will have the rights to distribute in all other countries where agreements do not currently exist through December 31, 2009. Distribution agreements with third parties are currently in force in Korea, Japan, China, Taiwan, Singapore and Brazil among others.

Additional elements of the new agreement include immediate purchases of the new high speed Waterlase MD Turbo and related upgrades, initial orders for some of the new geographies in the agreement and guaranteed bi-monthly minimum purchase levels for lasers and associated equipment.

Biolase has also announced plans to make additional reductions in its corporate cost structure. The recent actions conclude the shut-down of the company’s direct selling efforts abroad, where the company was previously losing $4 to $5 million per year.

David Mulder, CEO of Biolase, said: The new agreement with Henry Schein eliminates certain elements of uncertainty that were present in our past agreements. It establishes a more predictable and stable baseline revenue stream for Biolase, and coupled with our plans for a lower overall cost structure, we have established a solid foundation from which we can generate cash flows and long-term growth.