If You Have an iPhone or iPad, Update to Apple iOS 15.6.1 NOW!!!

 This patch has been available for a week or two so this isn't immediate breaking news, but it is still critically important enough for me to make this post.

The latest update to the mobile software Apple iOS 15.6.1 needs to be downloaded and installed ASAP.  The update fixes a couple of really serious security holes that bad guys are exploiting in the wild.

Unfortunately, until you update hackers have the ability to basically jail break your phone.  This would give criminals full access to everything on your device.  That means passwords, banking info, all of your data.

So *please* perform the update.  I know some of you like to wait a bit and make sure there are no problems that come with an update, but this one is critical.  If you would like to learn more, there is a great post on the Sophos website about it.

Down But Not Out...

 Believe it or not, dentistry can really take its toll on you physically.  Since most of my regular readers are from the profession, I know that you understand what I'm talking about.  For the non-dentists out there, just take my word for it.

Spending multiple hours per day in a static posture while performing precision procedures really does beat you up from a physical standpoint.

Anyway, enough with the lecture about the woes of my chosen profession.  My point here is that I injured my back over the weekend and it is taking me a while to bounce back.  Due to that, my blog is going to take a week off from posting as I recover and try to still see patients.  It's just that moving much more slowly doesn't give me as much free time as I normally have.

I'll be back in full force next week!  For those of you in the United States, have an incredible Labor Day 
Weekend!

Carestream Takes Next Step to Implement Previously Announced Recapitalization

 Files Voluntary Chapter 11 Petitions and Prepackaged Plan of Reorganization; Company Expects to Complete Court-Supervised Process in 35-45 Days

Carestream to Continue Operating and Serving Customers as Normal

What follows below is a press release.  It seems that Carestream has continued to fall on hard times.  Back in the day this was Kodak's medical division.  They sold more medical grade film than anyone else on the planet, but they refused to adapt when the digital came along.  As many companies do, they clung to their old way of making money using the idea of "we've always done it this way" and change swept over them like an avalanche.

After you read the press release below, you should read a short but great article from Bloomberg.com on this situation. 

Press Release

Carestream Health (“Carestream” or the “Company”) announced it is taking the planned next step to implement the previously announced recapitalization process with its lenders by voluntarily filing for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Company’s lenders have overwhelmingly voted in favor of a “prepackaged” restructuring plan, which contemplates implementing the agreed recapitalization that has been filed with the Court. The recapitalization contemplated by the prepackaged plan will eliminate approximately $470 million of debt, representing a total debt reduction of $250 million more than the Company’s previously announced recapitalization agreement. This process will significantly strengthen Carestream’s balance sheet and position the Company for continued success.

Carestream expects to continue operating normally throughout the court-supervised process and remains focused on serving its customers and working with suppliers on normal terms. With the overwhelming support of its lenders, the Company expects to move through this process on an expedited basis and complete the recapitalization in approximately 35-45 days. Certain of the Company’s existing lenders have committed to provide a $80 million debtor-in-possession financing facility to reinforce the Company’s liquidity and fund the costs of the process. Carestream entities outside the United States are not part of the Chapter 11 process and are operating as normal.

“We are commencing the final stage of our recapitalization process, which will significantly enhance our ability to navigate a dynamic market,” said David C. Westgate, Chairman, President and CEO of Carestream. “Since announcing our recapitalization process in April, our lenders have remained overwhelmingly supportive, and we have worked constructively with them to complete the transaction. As our talks evolved, we determined the best course of action was to implement the agreement through an expedited court-supervised process. With a clear path to completion, we expect to emerge from this process as a stronger partner to our customers, with significantly reduced debt and new owners who also continue to believe in the future of Carestream.”

Mr. Westgate continued, “Carestream has strong market opportunities ahead. I am confident in the strength of our core business and our ability to maintain market leadership moving forward. I would like to thank our customers and partners for their unwavering support. I also want to thank our talented team across the globe, whose commitment to serving our customers has been steadfast throughout this process.”

Carestream has filed customary motions with the Court seeking authorization to support its operations during this process. The Company expects suppliers to be unimpaired by this process and intends to pay suppliers in full for goods and services provided before, on or after the Chapter 11 filing date.

Additional information is available by calling Carestream’s Restructuring Hotline, at 877-709-4750 (toll-free in the U.S.) or 424-236-7230 (for calls originating outside the U.S.). Court documents and additional information about the court-supervised process are available on a website administered by Carestream’s claims agent, KCC, at www.kccllc.net/Carestream.

Complete Specialty Solutions Completes Funding Round and Launches Stream Dental Software Platform

 Industry First In-House Specialty Software Platform for DSOs & Traveling Specialists

Complete Specialty Solutions (CSS), the nation’s leading in-house specialty solutions provider to DSOs, today announced the commercial launch of its proprietary software platform Stream Dental for managing the complex operational workflow associated with in-house specialty services. “We are honored to launch the Stream Dental platform in partnership with leading regional and national DSOs and a network of experienced specialists,” said Santosh Patel, president of CSS. The company has a long history of operating specialty services reaching over 200 offices through its large specialist network. Recognizing the accelerating trends of DSOs seeking to bring specialty services in-house along with specialists seeking alternatives to the burdens of practice ownership, CSS is launching the industry’s first comprehensive software solution to elevate in-house specialty performance with a focus on growth, compliance, patient experience, and specialist engagement.

The Stream platform was originally created in 2019 as an internal solution to digitize and hardwire best practice workflows and communications within the CSS network of 200+ practices where CSS operates all aspects of in-house specialty services as a fully managed solution. “Based on the experience and insights from providing over 20,000 cases across all major specialties, we’ve been able to develop a unique platform for managing workflow and optimizing results from specialty services programs. We look forward to sharing these capabilities with DSOs and traveling specialists across the country,” said Patel.

Key capabilities of the Stream platform include:

• Enhanced referral capture and tracking with CRM capabilities

• Multi-channel, specialty-specific patient engagement 

• Specialist apps for enhanced planning and clinical collaboration

• Robust enterprise analytics and decision support

• Comprehensive safety, risk management and compliance support across clinical ops & HIPAA 

• Supports both in-house and external specialty referral workflows

MB2 Dental – Justin Puckett, President 

“Great specialty tech platform that provides immediate growth and operations improvement.  The CSS team is deeply committed to building the best-in-class tech for all aspects of in-house specialty.  This was a no-brainer.”

Dental Care Alliance – Jennifer Goodwin, Regional Manager

"The technology and dashboards Complete Specialty Solutions has designed have made the referral process and scheduling specialty procedures turnkey. It's simple and quick for all team members. No paper or sticky notes to get lost.  All referrals in one place!"  

CSS is also announcing a funding round led by Indicator Ventures, BP Capital, and Old Three Hundred Capital. The company will use the funding to bring Stream Dental to more DSOs and specialists across North America. The funding will also enable CSS to expand its product offering and enhance its customer experience for dental practices, specialists, and patients. “Complete Specialty Solutions is a game changer for the dental industry,” Said Baiyin Murphy, general partner at Indicator Ventures. “They have a keen understanding of the operational rigor it takes to bring specialty services closer to the dental offices and patients leading to better outcomes and profits. Their approach is a triple-win for specialists, dental offices, and patients alike.”

“We’re very excited to launch the industry’s first and only SaaS platform focused on elevating in-house specialty performance, which can often represent up to half of a DSOs overall revenue,” said Omar Alvi, CEO of CSS. “Through our years of experience operating all aspects of in-house specialty services, we’ve identified the most significant pain points and opportunities and are now bringing these capabilities to all DSOs and traveling specialists across the country. We’re committed to investing heavily in the ongoing expansion of our software capabilities to deliver increasing benefits to DSOs, specialists, and patients.”

About Complete Specialty Solutions (CSS)

Based in Houston, TX, CSS is the nation’s leading provider of fully managed specialty services for DSOs, powered by Stream Dental, its proprietary technology platform that digitizes and hardwires critical workflows and communications required to maximize the specialty services opportunity. CSS provides a turn-key solution that immediately expands clinical capabilities with enhanced quality of service, while increasing revenue and profits with zero up-front investment. For more information, visit www.completespecialty.com.

ONDIEM AND ADAA ANNOUNCE PARTNERSHIP

 

As staffing costs rise, onDiem drills down to improve bottom lines

onDiem is excited to announce a strategic partnership with the American Dental Assistants Association (ADAA). This collaborative partnership will have a significant impact across the entire dental echo system. At the core of this partnership is a mutual commitment to support dental assistants in thriving in their careers by providing access to resources, continuing education, and career development opportunities.

This partnership will also aid practices in navigating dentistry's nuanced and unprecedented staffing challenges. onDiem and the ADAA will work together to make onDiem's Digital ID the trusted, single source of verification and credentialing to ensure safety and compliance across the industry. onDiem's Digital ID streamlines navigating individual state boards for requirements and certifications for dental assistants— reducing risk and human resources.

“ADAA and its members are excited and happy to be forging a collaborative relationship with onDiem and its staff,” says Susan Camizzi, President of ADAA. She adds, “We look forward to working with the group to further assist and support dental assistants nationwide in their careers and education as an integral and very important part of the dental team.”

“onDiem’s mission is caring for those who care for others; this ethos aligns perfectly with the ADAA’s mission of advancing the careers of dental assistants— and their profession overall— in matters of education, professional activities, and credentialing,” states Joe Fogg, CEO onDiem.

About onDiem Founded in Portland, Oregon, in 2017, onDiem's staffing platform connects dental practices and dental professionals in all 50 states to meet real-time staffing needs. onDiem distinguishes itself from other staffing platforms by offering employees, not contractors for temporary shifts. They eliminate the burden of staffing compliance, so practices can focus on maximizing production and revenue. onDiem dental professionals enjoy healthcare benefits, employer-paid taxes, and insurance coverage, along with the ability to set their own work schedule and hourly rates. With a free account, dental professionals can look for temporary and permanent job opportunities, and practices can create posts for new temp shifts, search for professionals in their area, and communicate with candidates directly. Today the platform serves over 32,000 dental professionals and over 13,000 dental practices.

About ADAA The American Dental Assistants Association is the oldest, largest group representing professional dental assistants. Established over 90 years ago, the ADAA provides continuing education to dental assistants through home study courses, professional journals, and local, state, and national meetings with educational agendas. It encourages education, registration, and certification for dental assisting professionals while providing a network of personal services for its members. Services such as insurance programs, salary and other surveys, and travel and leisure services.

In most areas, the ADAA is served by the state association and often a local component as well. Membership in the ADAA provides membership in all these-national, state, and local.

Philips Sonicare Power Flosser Available in Corded *and* Cordless Models

 

I'm really excited about this product.  Philips has been a tremendously popular brand in oral healthcare for decades.  As Tech Editor and Chief Dental Editor for Dental Products Report, I've been fortunate to be able to use and evaluate many powered brushes over the years.  

In the last 5-10 years, the dental profession has begun to really embrace the oral irrigator.  For years there were concerns that using water or some other liquid under pressure to clean between the teeth would not provide as good an effect as floss.  However, now studies have proven that just isn't true.

Because oral irrigators have gained widespread acceptance in the profession, we have seen a large increase in the number of both manufacturers as well as more model choices from those manufacturers.  Choice is good!  I love having options with the devices I use and I truly believe that my patients want choices as well.  We routinely recommend oral irrigators to our patients. 

Since around March of this year (2022) I have been using and evaluating the newest top of the line tooth brush and oral irrigator from Philips Sonicare.  My evaluation of the 9900 Prestige sonic toothbrush was postage a while back, but I have also been working with the Philips Sonicare Power Flosser as well.

We all *know* that we should floss.  We all know it contributes to better oral health and that better oral health directly relates to better *overall health*.  However, humans are funny creatures.  Just because we *know* something is good for us doesn't mean we always do it.

Flossing can be difficult.  Sometimes it requires coordination someone just doesn't have.  Sometimes people have hands that are difficult to maneuver in our mouths for flossing (I happen to be one of those people).  Ever since I was a student and learned about the Butler Flossmate, I've used one.  The problem is, not everyone wants to or *will* floss.

How do you solve that problem?  With the Sonicare Power Flosser!  The unit, in an in-vitro study, 180% more effective for healthier gums than manual floss.  I have been incredibly impressed with the unit.  I am especially impressed with the Quad Stream technology pictured below...

This nozzle breaks the water or other liquid into 4 wide streams that really provide a thorough clean.  I love how my teeth feel after I've used the Power Flosser.  The unit I've been using the the countertop design. 

The device has 2 flossing modes, Clean and Deep Clean while each of those modes has 10 adjustable intensities.  The unit also comes with 2 different nozzles.  There is a Standard Nozzle that provides a single stream.  This is the nozzle that most people think of when they think of an oral irrigator.  The unit also comes with the previously mentioned Quad Stream nozzle.

I have found that I prefer the Quad Stream nozzle on setting 7.  I have quite a few crowns in my own mouth and I prefer that setup which makes my mouth feel "squeaky clean" after using.  This unit also comes with a 550ml reservoir which is about 18.6 oz.  I found that I usually use one reservoir for the upper and another for the lower.  Now, I'd like to state that I'm a dentist so I am probably a little more "overboard" on the cleaning aspect.  Most people could probably get by on just one 550ml.  I also use the unit prior to brushing with the Prestige 9900 as I like to get anything from between my teeth prior to brushing.

Some people have voiced concerns to me that irrigators can be messy.  I don't feel that is true.  I use my unit with my head over the sink and my face turned down.  Basically my face looking into the sink.  That way as the water leaves my mouth it drips directly into the sink.  Also, any overspray (which is minimal) goes in the sink as well.  The handle that actually goes into your mouth has an on/off switch which you can toggle back and forth so that you never have the unit running when it is outside the mouth.

Recently, Philips has released the Power Flosser Cordless.  If you are concerned about mess or overspray, then be concerned no more.  I advise patients that are concerned about making a mess to simply step into the shower and use the cordless unit.  Heck,  your shower is made to get wet!  The cordless unit has a 250ml reservoir and a USB charger.  It also has 2 modes with each having 3 intensities.

I've been very impressed with my Power Flosser and I recommend it to my patients.  If you give it a try I'm sure you'll be as impressed as I am.  This product is *highly recommended*! 

\

\

Russia Using Dolphins to Help Protect Black Sea Fleet

 Today's post is a short one, but that's because the *real* story is from the link below.

With all of the news and suffering coming out of the Russian invasion of Ukraine, I happen to stumble on this story.  It was published in April, but the info is still really interesting.  The Russian navy is using dolphins to help protect their fleet in the Black Sea.

I happen to know someone who worked with the U.S. Navy for a while in a similar program.  These are not very secret programs, but the two powers have trained dolphins to patrol around ships and look for underwater threats such as divers or other similar under water threats.

With their ability to detect things in the water, paired with their intelligence,  dolphins are well equipped to detect threats and engage threats if necessary.

It's interesting to see the dolphin cages in these photos...  Here is the link.  

More Financial Rumblings from the Dentsply Sirona Accounting Debacle

 

As regular readers will know, I've been following with interest the problems associated with 'accounting irregularities' in the previous Dentsply Sirona administration.   

The company has now announced that their former Chief Accounting Officer, Ranjit Chadha, will be terminated effective on September 2, 2022.

Here is the info that was filed with the United States Securities and Exchange Commision as of August 9, 2022:

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On August 4, 2022, DENTSPLY SIRONA Inc. (the “Company”) and Ranjit S. Chadha, the Company’s Chief Accounting Officer, mutually agreed upon the separation of Mr. Chadha from the Company, effective September 2, 2022 (the “Termination Date”). From August 4, 2022, until the Termination Date, Mr. Chadha will be an inactive employee but is expected to remain available for executive transition requests.

On August 9, 2022, the Company hired Richard M. Wagner to serve as its Chief Accounting Officer, as well as the principal accounting officer for purposes of the Company’s filings with the Securities and Exchange Commission, which appointment will be effective August 15, 2022. From August 4, 2022 until Mr. Wagner’s start date, the Company’s interim Chief Financial Officer, Barbara W. Bodem, will serve in the additional role of principal accounting officer.

Mr. Wagner, age 54, is joining the Company from his position as Chief Accounting Officer, Vice President and Corporate Controller of Hillrom Holdings, Inc., a position he held since 2018. Previously, he was Vice President and Controller, Lighting, at Cree, Inc. from 2017 to 2018. Prior to Cree, Inc., Mr. Wagner served as Vice President and Corporate Controller of DENTSPLY International Inc. from 2011 through and following the Company’s merger with Sirona Dental Systems, Inc. until 2017. Mr. Wagner is a Certified Public Accountant. He received his B.S. in Accounting from Penn State University.

Pursuant to his employment letter, Mr. Wagner will be paid an annual base salary of $400,000 and a one-time sign-on bonus of $100,000 (subject to repayment under certain circumstances). He will also receive an initial grant of restricted stock units (“RSUs”) with a grant date fair value of $150,000, vesting over a period of three years after the date of grant at the rate of one-third per year.

Mr. Wagner will also be eligible for (i) a target annual bonus of 40% of his base salary (on a pro-rated basis for 2022) as part of and subject to the conditions of the Company’s Annual Incentive Plan, and (ii) an annual equity award with an expected grant date fair value of $240,000 (on a pro-rated basis for 2022) in the following components: (a) 25% in the form of stock options vesting one-third per year over a three-year period, (b) 25% in the form of RSUs vesting one-third per year over a three-year period, and (c) 50% in the form of performance restricted stock units (“PRSUs”) with vesting based on achievement of the performance metrics and cliff vesting simultaneously with the PRSUs granted to other members of executive management. Additionally, Mr. Wagner is eligible to participate in the Company’s benefits programs offered to executive employees.

Mr. Wagner does not have any family relationship with any director or executive officer of the Company, or person nominated or chosen by the Company to become a director or executive officer, and he has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.

Join Me for a Discussion of Soft Tissue Lasers in Dentistry

 Join me tomorrow evening at 6:30 Central time for a discussion of soft tissue lasers and what they can do for your practice.

The program is sponsored by AMD and is certified for one hour of continuing education credit.

If you'd like to register, here is the link.  

DEXIS Imaging Launches DEXIS Days Month-Long Series of No-Cost Virtual Educational Events

 DEXIS Days are coming!  I'm honored to be included as part of an All Star group of professionals that will be providing educational events throughout September.  Here are all the details you need to be part of it!

Leading innovator of dental imaging technologies, sensors, and Cone Beam CT systems, DEXIS Solutions announces the launch of DEXIS Days, slated for the month of September 2022. A transformational virtual experience, DEXIS Days connects dental professionals to weekly no-cost webinars and presentations focused on thought leadership, Continuing Education, and training across a broad spectrum of digital dental technologies as well as practice strategies.

Between September 6 and September 30, 2022, doctors and staff will have the opportunity to attend multiple weekly webinars covering a wide range of topics for building a digital workflow and driving practice success. Topics will include intraoral scanning, intraoral x-ray, CBCT, treatment planning, AI-assisted diagnosis and treatment, in-practice 3D printing, and more.

Led by experienced dental professionals and subject-matter experts, DEXIS Days webinars will deliver actionable insights and value for practitioners seeking to advance their knowledge, proficiency and confidence with the latest digital dental technology and to more fully realize the advantages of an integrated, efficient digital workflow.

“DEXIS has a long history of dental imaging expertise and innovation,” explains JC Kyrillos, President at DEXIS solutions. “In developing our solutions, we’ve always listened to the input and needs of the practices and doctors who use them. We’re also committed to sharing expertise and best practices with the dental community, through training, thought leadership, and Continuing Education opportunities. DEXIS Days is an extension of that commitment.”

Offered through convenient virtual webinars and presentations, DEXIS Days will delve into subject matter most relevant to today’s practices, including:

• Easing the transition to digital dentistry

• Developing an efficient implant workflow

• Incorporating CBCT into any practice

• Practice radiation safety

• Retaining and engaging staff

• Leveraging Assisted Intelligence, software advancements, and navigated surgery

• Using 3D imaging for diagnosis, treatment planning and case presentation

• And more

Among the lineup of presenters are highly respected and renowned dental professionals who are leaders in their areas of expertise, including Dr. Chris Salierno, DDS, Dr. Pamela Maragliano-Muniz, DMD, Dr. Katya Archmbault, DMD, Dr. Martin Jablow, DMD, Dr John Flucke, DDS, and others.

“In planning the curriculum for DEXIS Days, we incorporated feedback from practices and carefully considered the topics that would be of most value to them,” says Brian Gooch, VP – Global Product Management and Marketing at DEXIS solutions. “Whether they attend some or all of the webinars, dental professionals will emerge from their DEXIS Days experience with learning, insight, guidance and resources they can use right away to advance their practice and patient outcomes.”

To learn more about DEXIS Days, view the complete curriculum, and register, click here.

AI Upgrades to Owandy’s QuickVision 3D Software Now Guide The Placement of More Than 100 Dental Implant Brands

 Owandy Radiology Inc., a global leader in the manufacture of dental radiology hardware and imaging software, recently upgraded the capabilities of its comprehensive  QuickVision 3D Implant Planning Software to include sophisticated Artificial Intelligence (AI) functions and the expansion of its substantial dental implant library.

QuickVision 3D: Now Powered by AI

According Owandy company spokesperson, Boris Loyez,  “We’ve implemented new features into QuickVision 3D software with the help of our internally-developed AI platform, which enables the auto-matching of a *.dicom and a *.STL file to easily create customized surgical guides. Now more than ever, QuickVision 3D software is a perfect match with the Owandy I-Max 3D compact wall-mounted cone beam unit, and the combination of our hardware and software truly makes the I-Max 3D a game-changer within the cone beam industry.”

100 Dental Implant Libraries and Counting

In addition to adding advanced AI capabilities, Owandy has been aggressively expanding the number of implant manufacturer libraries in QuickVision 3D Implant Planning Software which now includes most of the leading brands such as Bicon, BioHorizons, Camlog, Dentsply-Sirona, Nobel Biocare, Ritter, Straumann, Sweden & Martina, Zimmer Biomet, and more.

“Owandy’s new intuitive AI platform, extensive implant library, and open architecture enables QuickVision 3D to be used with any 3D intraoral scanner on the market to enhance the digital workflow capabilities and overall efficiency of virtually any modern dental implant practice, adds Loyez.”

For more information about the Owandy' QuickVision 3D and its full line of products, visit www.Owandy.com, call 516-858-5695, or send an e-mail to sales@owandyus.com. 

Distributor and DSO inquiries are always welcome.

About QuickVision 3D Implant Planning Software

Owandy’s world-renown QuickVision 3D generates panoramic images, cross-sections and bone models from axial images that can be used to identify the mandibular canal, as well as show the 3D bone model. QuickVision 3D can also be used to simulate implant placement on 2D and 3D models. What’s more, the software can easily design surgical guides by identifying the patient’s main anatomical characteristics. In addition, to secure the implant planning procedure, it will also detect any potential collisions, and several other clinical details. There is also a dedicated program for complex endo cases and thanks to the cephalometric addition, orthodontists can also benefit from QuickVision 3D.

About Owandy Radiology, Inc.: 

Headquartered in France, and serving North America from Roslyn, New York, Owandy Radiology is a global leader in the manufacture of dental radiology hardware and imaging software. Its products are distributed through dental dealers across the USA, and in more than 100 countries world-wide, on every continent. For more information, visit www.Owandy.com.

For those of you who don't know, Dentsply Sirona has been under investigation for some shady accounting practices that were pulled off by executives that have since been terminated.  Be that as it may, the company is having to dig out from under these dark business clouds.  In the long run, the company is going to be fine, but this kind of news is not something you expect from the largest dental manufacturer in the world...

Here is the latest press release from the company.  

DENTSPLY SIRONA Inc. (“Dentsply Sirona” or “the Company”) (Nasdaq: XRAY) today is providing a business update.

As previously disclosed, the Audit and Finance Committee of the Company’s Board of Directors (the “Audit Committee”) is conducting an internal investigation regarding certain financial reporting matters. The investigation is ongoing and therefore the Company expects that it will not be in a position to file its Quarterly Report on Form 10-Q for the period ended June 30, 2022, (the “Second Quarter 10-Q”) by the August 9, 2022, deadline.

Select Preliminary Second Quarter 2022 Results

The Company’s operational performance improved sequentially in the quarter with net sales and adjusted EPS expected to be above preliminary first quarter 2022 results. While net sales declined year-over-year due to the unfavorable impact of foreign exchange, the business delivered organic sales growth driven by solid European regional performance and demand in strategic areas of the business, most notably, CAD/CAM, Equipment & Instruments, and Restorative and Preventive Consumables.

As anticipated, in the second quarter, the Company saw normalizing dealer inventory levels in the U.S. as well as realized benefits from recent product launches and pricing adjustments. The Company continued to experience macro headwinds including ongoing supply shortages and softness in sales in China due to COVID-related shutdowns.

As a result, Dentsply Sirona expects to report second quarter 2022 net sales of greater than $1,005 million. Additionally, diluted EPS is expected to be at or above $0.26 and adjusted EPS at or above $0.60.

The second quarter gross margin and adjusted EPS were favorably impacted by the timing of certain expenses which will be reflected in the third and fourth quarters.

For the full year 2022 outlook, the Company’s assumptions outlined on May 10, 2022, remain intact with the exception of foreign exchange. Management expects to provide an updated full year 2022 outlook after filing its Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 (the “First Quarter 10-Q”) and the Second Quarter 10-Q (collectively with the First Quarter 10-Q, the “Quarterly Reports”).

Consistent with the Company’s commitment to return cash to shareholders, Dentsply Sirona's Board of Directors declared a quarterly cash dividend of $0.125 per share of common stock, an indicated annual rate of $0.50 per share. The dividend is payable October 14, 2022, to holders of record as of September 30, 2022.

Investigation Update 

The Audit Committee continues to work diligently with independent counsel and advisors to complete its previously announced investigation as soon as possible. However, the Company cannot predict the duration or outcome of the investigation. Due to the pendency of the investigation, the Company has not yet filed its First Quarter 10-Q and does not believe it will file its Second Quarter 10-Q on a timely basis. In the course of the investigation, the Company has also evaluated certain other accounting practices. As a result of this review, the Company anticipates certain adjustments will be made to the previously announced preliminary first quarter financial results, and the Company is currently evaluating whether fiscal year 2021 reported financial results also require adjustments.

The Company will work to finalize its financial statements and review of internal controls and procedures, including the evaluation of any deficiencies in internal controls over financial reporting, as soon as practicable.

As previously disclosed, the Company has voluntarily contacted the SEC to advise it that an internal investigation is underway, and the Audit Committee intends to provide additional information to the SEC as its investigation proceeds. The Company intends to fully cooperate with the SEC regarding this matter.

Nasdaq Compliance Update 

On May 18, 2022, the Company announced it received a written notification from The Nasdaq Stock Market (“Nasdaq”) on May 12, 2022, indicating that the Company is no longer in compliance with Nasdaq Listing Rules because the Company had not timely filed its First Quarter 10-Q. In response to the notification and pursuant to the Nasdaq Listing Rules, the Company submitted a plan to regain compliance and it targeted filing the Quarterly Reports by August 14, 2022. The Nasdaq staff granted the Company an extension of time through August 14, 2022, in which to file the Quarterly Reports. The Company has notified Nasdaq that it no longer expects that it will be able to file the Quarterly Reports by August 14, 2022, and will submit an updated compliance plan to Nasdaq. If Nasdaq accepts the updated plan to be submitted by the Company, Nasdaq can grant an extension of time for shares of the Company’s common stock to remain listed for up to 180 calendar days from the First Quarter 10-Q’s original filing deadline to regain compliance, which would be November 7, 2022.

Notice Regarding Preliminary Results

The Select Preliminary Second Quarter 2022 Results included above in this press release are based upon preliminary financial results. These preliminary financial results are based upon information available to management as of the date of this press release. The Company’s actual results may differ from these results due to final adjustments and developments that may arise or information that may become available between now and the time the Company’s financial results for the three months period ended June 30, 2022, are finalized, and included in the Company’s Second Quarter 10-Q. During the course of the Audit Committee’s investigation, the Company may identify items that could cause its actual results to be different from these preliminary financial results. The Company’s independent registered public accounting firm has not audited, reviewed, compiled, or performed any procedures with respect to the preliminary financial results, nor has it expressed any opinion or any other form of assurance on such results or their achievability, and assume no responsibility for, and disclaim any association with, such results.

About Dentsply Sirona 

Dentsply Sirona is the world’s largest manufacturer of professional dental products and technologies, with over a century of innovation and service to the dental industry and patients worldwide. Dentsply Sirona develops, manufactures, and markets a comprehensive solutions offering including dental and oral health products as well as other consumable medical devices under a strong portfolio of world class brands. Dentsply Sirona’s products provide innovative, high-quality and effective solutions to advance patient care and deliver better and safer dental care. Dentsply Sirona’s headquarters is located in Charlotte, North Carolina. The Company’s shares are listed in the United States on Nasdaq under the symbol XRAY. Visit www.dentsplysirona.com for more information about Dentsply Sirona and its products. 

Forward-Looking Statements

All statements in this press release that do not directly and exclusively relate to historical facts constitute “forward-looking statements.” These statements represent current expectations and beliefs, including statements regarding the Audit Committee’s ongoing internal investigation and the preliminary financial information for the second quarter ending June 30, 2022, and no assurance can be given that the results described in such statements will be achieved. Such statements are subject to numerous assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those described in such statements, many of which are outside of our control. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the novel coronavirus (“COVID-19”) pandemic and the impact of varying private and governmental responses that affect our customers, employees, vendors and the economies and communities where they operate. For a written description of these factors, see the section titled “Risk Factors” in Dentsply Sirona’s Annual Report on Form 10-K for the most recent fiscal year. No assurance can be given that any expectation, belief, goal or plan set forth in any forward-looking statement can or will be achieved, and readers are cautioned not to place undue reliance on such statements which speak only as of the date they are made. The Company does not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of press release or to reflect the occurrence of unanticipated events.

Non-GAAP Financial Measures

The Company has provided certain measures in this press release that are not calculated in accordance with US GAAP and therefore represent Non-GAAP measures. These Non-GAAP measures may differ from those used by other companies and should not be considered in isolation from, or as a substitute for, measures of financial performance prepared in accordance with US GAAP. These Non-GAAP measures are used by the Company to measure its performance and may differ from those used by other companies.

Management believes that these Non-GAAP measures are helpful as they provide another measure of the results of operations, and are frequently used by investors and analysts to evaluate the Company’s performance exclusive of certain items that impact the comparability of results from period to period, and which may not be indicative of past or future performance of the Company.

Organic Sales

The Company defines "organic sales" as the reported net sales adjusted for: (1) net sales from acquired businesses recorded prior to the first anniversary of the acquisition, (2) net sales attributable to disposed businesses or discontinued product lines in both the current and prior year periods, and (3) the impact of foreign currency changes, which is calculated by translating current period net sales using the comparable prior period's currency exchange rates.

Adjusted Operating Income (Loss) and Margin

Adjusted operating income (loss) is computed by excluding the following items from operating income:

(1) Business combination related costs and fair value adjustments. These adjustments include costs related to consummating and integrating acquired businesses, as well as net gains and losses related to the disposed businesses. In addition, this category includes the post-acquisition roll-off of fair value adjustments recorded related to business combinations, except for amortization expense of purchased intangible assets noted below. Although the Company is regularly engaged in activities to find and act on opportunities for strategic growth and enhancement of product offerings, the costs associated with these activities may vary significantly between periods based on the timing, size and complexity of acquisitions and as such may not be indicative of past and future performance of the Company.

(2) Restructuring program related costs and other costs. These adjustments include costs related to the implementation of restructuring initiatives, including but not limited to, severance costs, facility closure costs, lease and contract termination costs, and related professional service costs associated with specific restructuring initiatives. Other costs include legal settlements, asset impairments, executive separation costs, and changes in accounting principle recorded within the period. The Company is continually seeking to take actions that could enhance its efficiency, consequently restructuring charges may recur but are subject to significant fluctuations from period to period due to the varying levels of restructuring activity and the inherent imprecision in the estimates used to recognize the impairment of assets, and as such may not be indicative of past and future performance of the Company.

(3) Amortization of purchased intangible assets. This adjustment excludes the periodic amortization expense related to purchased intangible assets, which are recorded at fair value in purchase accounting. Although these costs contribute to revenue generation and will recur in future periods, their amounts are significantly impacted by the timing and size of acquisitions, and as such may not be indicative of the future performance of the Company.

(4) Fair value and credit risk adjustments. These adjustments include the non-cash mark-to-market changes in fair value associated with pension assets and obligations and equity-method investments. Although these adjustments are recurring in nature, they are subject to significant fluctuations from period to period due to changes in the underlying assumptions and market conditions. The non-service component of pension expense is a recurring item, however it is subject to significant fluctuations from period to period due to changes in actuarial assumptions, interest rates, plan changes, settlements, curtailments, and other changes in facts and circumstances. As such, these items may not be indicative of past and future performance of the Company.

Adjusted operating margin is calculated by dividing adjusted operating income by net sales.

Adjusted Net Income (Loss)

Adjusted net income (loss) consists of the reported net income (loss) in accordance with US GAAP, adjusted to exclude the items identified above, the related income tax impacts, and discrete income tax adjustments such as: final settlement of income tax audits, discrete tax items resulting from the implementation of restructuring initiatives and the vesting and exercise of employee share-based compensation, any difference between the interim and annual effective tax rate, and adjustments relating to prior periods.

These adjustments are irregular in timing, and the variability in amounts may not be indicative of past and future performance of the Company and therefore are excluded for comparability purposes.

Adjusted Earnings (Loss) Per Diluted Share

Adjusted earnings (loss) (EPS) per diluted share is computed by dividing adjusted net income (losses) attributable to Dentsply Sirona shareholders by the diluted weighted average number of common shares outstanding.

LightForce Welcomes Roger George to Company Board

Former Invisalign Exec Joins LightForce to Help Drive the Second-Wave of Orthodontic

Digitization

 LightForce, makers of the world’s only fully customizable 3D

printed braces system, announced today that industry veteran, Roger George, has been appointed

to the company’s Board of Directors. Mr. George served as Senior Vice President of Global Legal

and Regulatory Affairs at Align Technology, helping that company scale during a pivotal time in their

growth. In particular, he became an established expert in establishing, prosecuting, and protecting IP

in the dental industry.

“Roger has been in the orthodontics space for over 15 years and understands what it means to

focus an organization for rapid growth,” said LightForce CEO Alfred Griffin. “His industry

knowledge, functional expertise, and leadership experience in a hypergrowth environment will

all be invaluable to the LightForce team and the Board as we pursue our mission to create a

new standard of care for braces.

“Based on my experience, I see a tremendous opportunity in front of Alfred and the LightForce

team,” said Mr. George. “Clear aligners demonstrated that customized treatment plans based

on 3D-scans and sophisticated software were the future of orthodontics; however, the vast

majority of patients continue to be treated with braces. It’s truly exciting to join LightForce as

they drive the second-wave of digitization and customized braces therapy to address this huge

segment of the orthodontic patient population.”

About LightForce

LightForce is a digital platform providing orthodontists with fully customized, 3D printed tooth-moving

tools. Founded in 2015 by Dr. Alfred Griffin, DMD, PhD, MMSc, along with Dr. Lou Shuman, DMD,

CAGS, LightForce is revolutionizing the specialty through advanced manufacturing and technology.

After five years of extensive research and development, LightForce launched its first product to the

Orthodontic market- the world’s only fully customized 3D printed bracket system and digital

treatment software. Learn more at www.lf.co.

National Institutes of Health Uncovers Potential New Transmissioin Route of Norovirus... through Saliva

 An interesting announcement from NIH recently.  They have discovered that in laboratory animals (mice) a class of viruses, collectively called enteric viruses, can be passed through saliva.  This is a new discovery as previously this mode of transmission was unknown.

These viruses are well know to cause diarrhea in humans.  Outbreaks of this on cruise ships have been documented in the past.  These viruses can cause serious problems with dehydration as a great deal of fluid is lost when a human is affected with strong bouts of diarrhea.  This can even lead to death in some instances.

This discovery could be incredibly important if it is proven to also happen in humans.  Outbreaks caused by enteric viruses can often quickly pass from one host to another in close confines (like a cruise ship).  If humans also show these viruses in saliva, that means that the can be passed by coughing, sneezing, even talking; which would explain why they tend to spread so rapidly.

Human testing needs to be done to truly be sure, but this is a fascinating development.

If. you'd like to read the entire article regarding this discovery, follow this link to the National Institutes of Health.  

You Can't Outrun the Long Arm of the Law

 

It always amazes me when someone tries to scam the federal government in a healthcare setting.  There are entire governmental entities whose existence is solely based on looking for oddities in the billing numbers.  It amazes me even *more* when those numbers are massive... as in $1.2 billion massive!  

It seems that there was a healthcare system in Texas that was running a huge kickback scam between hospitals, labs, and doctors.  The problem is, that when you do that kind of thing and then try and bill federal programs... you are violation of federal laws... and when you violate federal laws, the Department of Justice gets involved.  Two things most of us don't want is either the DOJ or a team from 60 Minutes asking to speak with us.

So I offer today's post as advice to anyone thinking of cooking up some similar scam.  You might get away with it for a while, but when you get that call from the DOJ, things are NOT going to be going your way for 10 or more years; if you get my drift.

The full announcement is here, but this is an interesting part of the indictment.

21 Charged, Including Hospital and Lab CEOs, in Connection with Multistate Healthcare Kickback Conspiracy

$32 Million Paid to Date in Civil Settlements

TYLER, Texas – The Department of Justice announced criminal charges against 36 defendants in 13 federal districts across the United States for more than $1.2 billion in alleged fraudulent telemedicine, cardiovascular and cancer genetic testing, and durable medical equipment (DME) schemes.

In connection with this national effort, the U.S. Attorney’s Office for the Eastern District of Texas has charged 21 individuals, including doctors, laboratory executives, hospital executives, and marketers for their involvement in healthcare kickback and money laundering conspiracies.  Former True Health Diagnostics LLC CEO Christopher Grottenthaler, former Boston Heart Diagnostics Corporation Susan L. Hertzberg, former Rockdale Hospital d/b/a Little River Healthcare CEO Jeffrey Paul Madison, and others are defendants in a False Claims Act lawsuit captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.).  Additionally, 33 doctors and healthcare executives have agreed to pay over $32 million in order to resolve False Claims Act allegations for their involvement in the scheme.  The criminal and civil cases allege that the defendants unlawfully enriched themselves by paying and receiving illegal kickbacks in exchange for laboratory referrals. 

3M Announces Plans to Create Long Term Value Through Spin-Off of Health Care Business

 

This is a pretty major announcement.  3M, which has a huge position in the dental market, is looking at spinning off that portion of their business into a new company.  All of the divisions that 3M has in the healthcare sector will be spun off & combined into a new company called "Health Care" that currently accounts for $8.6 billion in sales.  What follows the press release provided by 3M.  This is an interesting move...

3M (NYSE: MMM) today announced its intent to spin off its Health Care business, resulting in two world-class public companies well positioned to pursue their respective growth plans.  The New 3M will remain a leading global material science innovator serving customers across a range of industrial and consumer end markets, and Health Care will be a leading global diversified healthcare technology company focused on wound care, healthcare IT, oral care, and biopharma filtration.

"Today's actions advance our ability to create value for customers and shareholders," said 3M chairman and chief executive officer Mike Roman. "Disciplined portfolio management is a hallmark of our growth strategy. Our management team and board continually evaluate the strategic options that will best drive long term sustainable growth and value. The decision to spin off our Health Care business will result in two well-capitalized, world-class companies, well positioned to pursue their respective priorities."

As leading standalone companies, each is expected to benefit from:

• Enhanced agility and focus to better position for long term success;

• Ability to tailor capital allocation strategies and make company-specific investment decisions to drive innovation and growth;

• Compelling investment profiles appealing to different investor bases; and,

• Distinct boards and management teams comprised of world-class leaders with relevant expertise and track records driving value creation.

New 3M: A Leading Global Material Science Innovator

New 3M, with $26.8 billion in sales in 2021, will remain a leading global material science innovator, powered by an operating model rooted in science and technology, manufacturing, global capabilities, and iconic brands. The company will continue to leverage its unique and differentiated innovation to capitalize on customer opportunities aligned with key global megatrends such as electronics, safety, mobility, digitization, home improvement, and sustainability.

New 3M expects to continue to deliver profitable growth, generate robust cash flow, and return capital to shareholders while maintaining a strong balance sheet. New 3M will continue to prioritize strategic opportunities, including investments in growth, productivity, and sustainability while maintaining a proactive approach to portfolio management. 3M anticipates that there will be no changes to the Company's capital allocation priorities through the completion of the separation.

Health Care: A Leading Global Diversified Health Care Technology Company

Health Care, with approximately $8.61 billion in sales in 2021, will be a diversified healthcare technology leader with a deep and diverse portfolio of trusted brands, global capabilities, and leadership in attractive end market segments such as wound care, oral care, healthcare IT, and biopharma filtration. Health Care will be better positioned to deliver industry-leading innovation that enables better, smarter, and safer healthcare for patients worldwide.

Health Care will focus on growth, grounded in its strong track record of profitability. With robust cash flow generation, Health Care will be well positioned to pursue its strategic objectives.

Transaction Details

Health Care is currently expected to be spun off with net leverage of approximately 3.0x – 3.5x EBITDA and to be positioned for rapid deleveraging. Additionally, New 3M expects to retain a stake of 19.9% in Health Care, which will be monetized over time.

The spin-off is intended to be tax-free for U.S. federal income tax purposes. The Company expects to complete the transaction by year-end 2023. The transaction is subject to satisfaction of customary conditions, including final approval from the 3M Board of Directors, filing and effectiveness of a Form 10 registration statement with the U.S. Securities and Exchange Commission, receipt of a tax opinion, receipt of a private letter ruling from the Internal Revenue Service, satisfactory completion of financing, and receipt of other regulatory approvals.

3M will retain responsibility for non-Health Care related litigation, including those related to Combat Arms Earplugs and PFAS.

Advisors

Goldman Sachs & Co and PJT Partners are serving as financial advisors and Wachtell, Lipton, Rosen & Katz is serving as legal counsel on the spin-off of 3M's Health Care business.

Update on Pending Food Safety Transaction with Neogen

3M intends to complete the transaction through a split-off with a targeted closing date of September 1, 2022, subject to approval by Neogen shareholders, receipt of required regulatory approvals and the satisfaction of other customary closing conditions.

Taking Action to Efficiently and Equitably Resolve Combat Arms Earplugs Litigation

In a separate press release issued today, 3M announced it is taking steps to resolve litigation related to Combat Arms Earplugs. Aearo Technologies and related entities ("Aearo Technologies"), all of which are wholly-owned 3M subsidiaries, have voluntarily initiated chapter 11 proceedings. With this change in strategy, this process is intended to resolve claims related to Combat Arms Earplugs in a manner that is more efficient and equitable to all parties, including plaintiffs with claims that are determined to be entitled to compensation. 3M and its other businesses have not filed for chapter 11 and will continue to operate as usual. Aearo Technologies' operations are also expected to continue operating in the ordinary course.

To access the press release, please visit our press release page here.

Q2 2022 Earnings Results and Conference Call

In a separate press release issued today, 3M announced its second-quarter 2022 results and updated its outlook for the full-year 2022.

3M will conduct an investor teleconference at 9 a.m. EDT (8 a.m. CDT) today. Investors can access this conference via the following:

• Live webcast at http://investors.3M.com.

• Live telephone:

◦ Call 800-762-2596 within the U.S. or +1 212-231-2916 outside the U.S. Please join the call at least 10 minutes before the start time.

• Webcast replay:

◦ Go to 3M's Investor Relations website at http://investors.3M.com and click on "Quarterly Earnings."

• Telephone replay:

◦ Call 800-633-8284 within the U.S. or +1 402-977-9140 outside the U.S. (for both U.S. and outside the U.S., the access code is 21999290). The telephone replay will be available until 11:30 a.m. EDT (10:30 a.m. CDT) on August 1, 2022.

1

Includes Food Safety (~$0.4B), expected to be divested by Sept. 1, 2022, that will no longer be part of the Health Care business.

Forward-Looking Statements

This news release contains forward-looking information about 3M's financial results and estimates and business prospects that involve substantial risks and uncertainties. You can identify these statements by the use of words such as "anticipate," "estimate," "expect," "aim," "project," "intend," "plan," "believe," "will," "should," "could," "target," "forecast" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans or prospects. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic, political, regulatory, capital markets and other external conditions and other factors beyond the Company's control, including natural and other disasters or climate change affecting the operations of the Company or its customers and suppliers; (2) risks related to public health crises such as the global pandemic associated with the coronavirus (COVID-19); (3) foreign currency exchange rates and fluctuations in those rates; (4) liabilities related to certain fluorochemicals, including lawsuits concerning various PFAS-related products and chemistries, and claims and governmental regulatory proceedings and inquiries related to PFAS in a variety of jurisdictions; (5) legal proceedings, including significant developments that could occur in the legal and regulatory proceedings described in the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2021, as updated by the Company's Current Report on Form 8-K dated April 26, 2022, and any subsequent quarterly reports on Form 10-Q (the "Reports"); (6) competitive conditions and customer preferences; (7) the timing and market acceptance of new product offerings; (8) the availability and cost of purchased components, compounds, raw materials and energy (including oil and natural gas and their derivatives) due to shortages, increased demand or supply interruptions (including those caused by natural and other disasters and other events); (9) unanticipated problems or delays with the phased implementation of a global enterprise resource planning (ERP) system, or security breaches and other disruptions to the Company's information technology infrastructure; (10) the impact of acquisitions, strategic alliances, divestitures, and other unusual events resulting from portfolio management actions and other evolving business strategies, and possible organizational restructuring; (11) operational execution, including scenarios where the Company generates fewer productivity improvements than estimated; (12) financial market risks that may affect the Company's funding obligations under defined benefit pension and postretirement plans; (13) the Company's credit ratings and its cost of capital; (14) tax-related external conditions, including changes in tax rates, laws or regulations; (15) matters relating to the proposed spin-off of the Company's Health Care business, including whether the transaction will be completed, or if completed, will be on the expected terms; the risk that the expected benefits will not be realized; the risk that the costs or dis-synergies will exceed the anticipated amounts; the ability to satisfy the various closing conditions; potential business disruption; the diversion of management time; the impact of the transaction (or its pendency) on the Company's ability to retain talent; potential impacts on the Company's relationships with its customers, suppliers, employees, regulators and other counterparties; the ability to realize the desired tax treatment (including whether an Internal Revenue Service private letter ruling will be sought or obtained); the risk that any consents or approvals required will not be obtained; risks associated with financings that may be undertaken and indebtedness that may be incurred in connection with the transaction; and (16) matters relating to the voluntary chapter 11 proceedings of the Company's subsidiary Aearo Technologies and certain of its affiliates (the "Aearo Entities"), including legal risks related to the chapter 11 proceedings; potential impacts to the Company's reputation and its relationships with customers, suppliers, employees, regulators and other counterparties and community members; potential impacts to the Company's liquidity or results of operations, including risks related to the amount that will be necessary to fully and finally resolve all of the Company's obligations to make payments to resolve such claims under the terms of its funding and indemnification agreement with the Aearo Entities; and the Aearo Entities' ability to navigate the chapter 11 proceedings to obtain approval and consummation of a plan of reorganization. Changes in such assumptions or factors could produce significantly different results. A further description of these factors is located in the Reports under "Cautionary Note Concerning Factors That May Affect Future Results" and "Risk Factors" in Part I, Items 1 and 1A (Annual Report) and in Part I, Item 2 and Part II, Item 1A (Quarterly Reports). The Company assumes no obligation to update any forward-looking statements discussed herein as a result of new information or future events or developments.

The Battle Between Smile Direct Club and Invisalign Continues...

 In a reopened case arising from prior NAD decisions, The National Advertising Division (NAD) of BBB National Programs determined that SmileDirectClub, LLC's claim that its treatment costs "60% less than Invisalign," without further qualification, was overly broad. Therefore, NAD recommended SmileDirectClub (SDC) modify the claim to clearly and conspicuously disclose that SDC aligners do not correct the same range of issues that might be addressed with Invisalign.

The claim at issue, which appeared on several of SDC's webpages, was challenged by Align Technology, Inc., maker of Invisalign clear aligners.

2020 Challenge

In a 2020 challenge brought by Align, NAD had recommended that SDC's "60% less than braces" and "60% less than other brands" claims both be discontinued. Based on NAD's recommendation, SDC agreed to discontinue those claims.

2021 Challenge

In 2021, SDC petitioned to reopen the matter pursuant to NAD/NARB Procedures. NAD granted the petition to re-open based on its review of a new survey of 200 practicing orthodontists conducted by a third-party market research company to address the concerns NAD had expressed in the prior decision.

NAD determined that SDC's survey constituted reliable evidence. However, NAD determined that without additional information, a consumer could take away an overly broad and potentially misleading message from the advertiser's "60% less than braces" claim. Therefore, NAD recommended that the advertising should be modified to:

• Make clear that SDC consumers may not obtain the same results as those that could be obtained from braces.

• Clearly disclose the basis of the price comparison, including that the average typical price was derived from a survey of orthodontists asking the price for treatment of mild-to-moderate malocclusion with braces as well as the additional services included in the average typical price (i.e., costs associated with diagnostics and exams).

• Make clear that the SDC price being compared is its one-time single payment price, not the higher SmilePay monthly payment price, and does not include the cost of any additional services, such as retainers.

Further, NAD recommended that SDC discontinue the claim "60% less than other brands" because its survey did not ask respondents which brand of aligners they prescribe, making it unclear how much of the market is represented by the responses.

In its advertiser statement, SDC agreed to comply with the 2021 decision.

Reopened Proceeding

Subsequently, SDC commissioned a new survey (Second Survey), which was modified to address the concerns raised by Align in the 2021 reopened matter. SDC then launched new advertising claiming "60% less than Invisalign," with a disclosure stating:

"60% less than Invisalign" claim is based on Single pay vs. average fees (including diagnostics and in-person exams) for treatment of mild-to-moderate malocclusion with Invisalign as reported in a national survey of practicing dentists and orthodontists. Price comparison does not include additional costs, such as retainers. As treatment is highly individualized, results may not be the same.

Because of this new advertising, Align initiated a compliance challenge against SDC and SDC responded by petitioning to reopen both the 2020 and 2021 decisions so that NAD may consider its new evidence. NAD agreed to reopen this case to review the new evidence and consider whether SDC can support the express claim that its treatment is "60% less than Invisalign."

NAD determined that the methodology of SDC's Second Survey was reliable. However, NAD found that without further qualification, reasonable consumers can take away an overly broad message from the advertiser's "60% less than Invisalign" claim.

Further, although NAD recognized that SDC's disclosure was intended to follow guidance from the 2021 decision, NAD concluded that the disclosure is inadequate to inform consumers that SDC aligners will not correct the same range of issues that might be addressed by Invisalign. NAD explained that merely stating that treatment is individualized will only alert consumers to the fact that everyone may see different results, not that the 60% less comparison is comparing two services that differ in the malocclusions that they treat.

Therefore, NAD recommended that SDC modify the "60% less than Invisalign" claim to clearly and conspicuously disclose that SDC aligners do not correct the same range of issues that might be addressed with Invisalign.

In its advertiser statement, SmileDirectClub stated that "it will comply with the NAD's recommendations." The advertiser further stated that while it "disagrees that its qualified '60% less than Invisalign' claim sends any overly broad messages . . . as a strong supporter of the self-regulatory system, SDC will modify its disclosure to comply with the NAD's recommendations."

All BBB National Programs case decisions can be found in the case decision library. For the full text of NAD, NARB, and CARU decisions, subscribe to the online archive.

About BBB National Programs: BBB National Programs is where businesses turn to enhance consumer trust and consumers are heard. The non-profit organization creates a fairer playing field for businesses and a better experience for consumers through the development and delivery of effective third-party accountability and dispute resolution programs. Embracing its role as an independent organization since the restructuring of the Council of Better Business Bureaus in June 2019, BBB National Programs today oversees more than a dozen leading national industry self-regulation programs, and continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-directed marketing, and privacy. To learn more, visit bbbprograms.org.

About the National Advertising Division: The National Advertising Division (NAD) of BBB National Programs provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. NAD reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and leveling the playing field for business.