Growth Strategy Entrepreneurship Ppts

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					                                                   Outline

                                                   • Background & Career Path
                                                   • Primer on Implant Dentistry
                                                   • The BioHorizons Story
                                                     – Early struggles
                                                     – Building blocks of growth
                            Steve Boggan           • BioHorizons Today
                                                   • Lessons Learned
                       President and CEO
                                                   • Questions and Answers




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                                                   Implant Dentistry Replaces the Patient’s Natural
Background & Career Path                           Anatomy to Repair Function and Aesthetics

•   1982 graduate of Tupelo High
•   1986 B.S. Biological Engineering, MSU
•   1989 M.S. Biomedical Engineering, UAB
•   Joined Dow Corning Wright in 1989
    – Various positions in R & D
    – Moved to product management in 1993
• 1995 M.B.A. University of Memphis
• Joined BioHorizons in 1995
    – Became CEO in 1999




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Why Implants?                                      Attractive Growth Profile
                                                                                                $ in Billions

• Becoming the standard of care                                                                                              18.7               0.2
                                                                                                                             1.6                0.8
• Proven to preserve bone                                                                                                    2.6
                                                                             11.6
                                                           0.3
• Preserve facial form and function                        0.6                1.3                                            7.5
                                                                              1.7
                                                                                                                                                0.7
• Restores smiles and patient’s confidence                                    5.0
                                                          0.3                                                                5.3
                                                                              2.4
• Predictable long-term results of implant
    supported prosthesis                                                    2007                                             2012
                                                      Implants – 2007 – 2012 CAGR: 17%   Biologics – 2007 – 2012 CAGR: 17%   Crowns – 2007 – 2012 CAGR: 8%

    – over 98% success rate for dental implants       Bridges – 2007 – 2012 CAGR: 8%     Dentures – 2007 – 2012 CAGR: 5%     Veneers – 2007 – 2012 CAGR: 8%

                                                      Other – 2007 – 2012 CAGR: (3%)
                         IMPLANTS ARE THE FUTURE



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                                                                                                                                                              1
      Single Tooth Replacement                 Partial Tooth Replacement




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      Overdentures for Edentulism
                                         BioHorizons Early Years

                                         • Founded in 1994 by engineering professor at UAB and a renowned
                                             implant dentist from Michigan
                                         •   Co-founder had largest private educational institute for implant training
                                         •   Biomechanically-based implant design
                                         •   Began as incubator company at UAB
                                         •   Raised >$10M in capital over a three year period
                                         •   Commenced sales in 1997




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Implant Product Offering                 Revenue and Operating Loss by Fiscal Year
Internal / Single-Stage Implant System

                                                                   6
                                                                   5
                                                    ($ millions)




                                                                   4
    Internal with Cover                                            3
     Cap in two-stage                                              2
          protocol
                                                                   1
                                                                   0
                                                                       FY 98   FY 99          FY 00
                                                                                    Fiscal Year


  Single-stage with 1.8mm                                                 Revenue    Operating Loss
     collar in one-stage
           protocol



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                                                                                                                         2
What Happened?                                                            Recapitalization in Fall 1999

•   Product harder to use than competing systems                          •   New management
•   Overestimated sales impact of company founders                        •   Reduced personnel and expenditures to decrease burn rate
•   Distribution channels were not adequately developed                   •   Received $2M backstop investment from existing investors
•   Staffed up too quickly and in the wrong areas                         •   Simplified capital structure by converting preferred stock to common
•   Poor marketing                                                            stock

•   Questionable management decisions                                     • Provided incentives to key employees and consulting dentists




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Strategic Evaluation                                                      Building Blocks of Growth
                                                                          • Established belief in our vision, goals and leadership among employee
•   Conducted a realistic SWOT assessment                                     base
•   Understood KSFs for market                                            • Signed exclusive distribution agreements with Osteotech and LifeCell in
•   Improved product line and breadth                                         2000 to create the first tissue regeneration product portfolio within an
                                                                              implant company
•   Had vision to capitalize on emerging trends
•   Determined proper marketing and sales strategy
                                                                          •   Simplified implant product line and added new implant systems

•   “Attacking competitive weaknesses is more profitable than attacking
                                                                          •   Developed educational relationships
    competitive strengths – Michael Porter”                               •   Get the right people on the bus
                                                                          •   Celebrated successes

                                                                                     Sold BioHorizons to HealthpointCapital
                                                                                          in 2006 for > 3 times revenue

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Fastest growing in industry                                               Corporate Headquarters

                                                                          • BioHorizons’ headquarters is in
                                                                              Birmingham, Alabama

                                                                          • 44,000 square foot facility
                                                                          • ~ 280 employees
                                                                          • Seven foreign subsidiaries
                                                                          • 31 exclusive distributors in ROW
                                                                          • 5th largest and fastest growing
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                                                                              implant company
         98

         99

         00

         01

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                                                                                                                                                                                                                                                  Geographic Mix & Growth
Geographic Network
Worldwide distribution network

                                                                                                                                                                                                                                                                                                                        Region             YoY Growth

                                                                                                                                                                                                                                                                         7.5%
                                                                                                                                                                                         Russia
                                                                                                                                                                                                                                                           7.5%                                                         U.S.                      19%
                                                                                                                                      Moscow
                  Canada                                                               United Kingdom                Lithuania


                                  Ontario                                            Crow thorne
                                                                                                 Berkshire
                                                                                                                  Vilnius

                                                                                                        Germany Poland
                                                                                                                                                                                                                                                   11.0%                                                                Distributors              16%
                                                    Markham
                                                                                  Saint Renan
                                                                                                       Kirchzarten
                                                                                                  France
                                                                                                                           Kyiv
                                                                                                                       Romania
                                                                                                                                 Ukraine                                                                                                                                                                        49.0%
                                                                                             Seyssinet     Italy               Bucharest
                                                                                                                    Sofia Bulgaria
                                                                                Portugal
                                                                            Linda-a-v elha
                                                                                                 Madrid
                                                                                             Spain
                                                                                                             Rome
                                                                                                                     Greece Istanbul
                                                                                                                    Athens
                                                                                                                            Cyprus
                                                                                                                                        Turkey
                                                                                                                                       Lebanon
                                                                                                                                                                                                             South Korea
                                                                                                                                                                                                                    Seoul
                                                                                                                                                                                                                              Japan
                                                                                                                                                                                                                                       Tokyo
                                                                                                                                                                                                                                                                                                                        Canada                    20%
                                                                                                                               Israel Saida       Kuw ait
                                                                                                                      Alexandria                                     Pakistan
                                                                                                                              Cairo                                Karachi
                        Mexico

                    Mexico City
                                                                                                                             Egypt             Abu Dhabi
                                                                                                                                                       UAE
                                                                                                                                                           Dubai                India

                                                                                                                                                                                Pune
                                                                                                                                                                                                                  Taipei
                                                                                                                                                                                                                Taiw an
                                                                                                                                                                                                            Hong Kong
                                                                                                                                                                                                                                                                                                                        Spain                     61%
                                  Col. Narv ate                                                                                                                                         Thailand
                                                     Medellin                                                                                                                               Bangkok
                             El Salv ador                       Caracas
                         San Salv ador
                                   Costa Rica                 Venezuela
                                                                                                         Nigeria
                                                                                                        Lagos
                                                                                                                                                                                           Selangor Darul Ehsan
                                                                                                                                                                                                                                                           25.0%                                                        U.K.                       6%
                San Pedro de Montes de Oca
                                                    Cali   San Fernando                                                                                                                        Malaysia
                                            Env igado Colombia                                                                                                                          Indonesia

                                                                                                                                                                                                  Jakarta
                                                     Peru

                                                  Lima
                                                                                                                                                                                                                                                                                                                        Germany                   12%
                                                  Arequipa




                                                    Chile       Argentina
                                                                                                                                                                                                                           Australia                       U.S.    Distributors   Canada   Spain   Other Subs           Australia                 28%
                                                                                                                                                                                                                                       Waterloo

                                                   Santiago      Buenos
                                                                   Aires
                                                                                                                                                                                                                                                                                                                        Total                     21%
    Distributorship locations
    Countries served

                                                                                                                                                                                                                                                                                                                                       Laser-
                                                                                                                                                                                                                                                                                                                                       Laser-Focused
                                                                                                           19                                                                                                                                                                                                   20
                                                                                                                                                                                                                                                                                                                                                 in
                                                                                                                                                                                                                                                                                                                                                      2009




Comprehensive Portfolio                                                                                                                                                                                                                           Tapered Internal with Laser-Lok




                                                                                                                                                                                         Prosthetics




                                                   Implants

                                                                                                                                                                      Soft & Hard Tissue


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                                                                                                                                                                                                                                                                   Landmark study
                                                                                                                                                                                                                                                                   Myron Nevins




                                                                                                                                                                                                                                                  • Laser-Lok attracts a physical
                                                                                                                                                                                                                                                    connective tissue attachment
                                                                                                                                                    Laser-Lok®                                                                                      – Inhibit epithelial downgrowth
                                                                                                                                                    microchannels                                                                                   – Establish a predetermined site
                                                                                                                                                                                                                                                      for connective tissue
                                                                                                                                                                                                                                                    – Preserve the coronal level of the
                                                                                                                                                                                                                                                      bone




                                                                                                           23                                                                                                                                                                                                   24                       Courtesy of Myron Nevins, DDS, Harvard




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Laser-Lok Case: Cary Shapoff, DDS
                                                                               Digital Dentistry is the Future
                                                                                    Screening                        Surgical                                 Restoration

                                    Bone on collar at two years
                                                                                   Screening         Evaluation             Surgery
                                                                                                     • Examine              • Surgical       Healing
                                                                                   • CT scan                                                              Final Restoration
                                                                                                       bone / soft            Guide
                                                                                   • Restoration       tissue               • Implants                    • Fit final restoration
                                                                                     plan            • Surgical             • Temporary                   • Fine tune
                                                                                                       plan                   restorations   Lab Office




                                                                                                   Can Reduce Process by 3 months or more



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CAD / CAM Product Offering                                                     Lessons Learned
Significant experience generating final restorations utilizing
CAD / CAM technologies                                                         • Stay lean to preserve cash
Scan model                        Design                          Production   • Surround yourself with great people but be quick to acknowledge and
                                                                                 correct a hiring mistake
                                                                               • Don’t let your ego allow the “if you build it, they will come” mentality
                                                                               • Think strategically – use your strengths to attack competitors’
                                                                                 weaknesses
                                                                               • Have multiple paths to success
                          Crowns and Abutments
                                                                               • Make everyone your customer – “the purpose of business is to create a
                                                                                 customer – Peter Drucker”




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Individual Advice

•   Perseverance – be prepared to work long and hard
•   Take business classes and read business magazines
•   Learn how to write
•   Network to expand your contact base and to learn from others
•   Have a positive mental attitude – “our attitude towards life determines
    life’s attitude towards us – Earl Nightingdale”
• Adaptability – keep focus on the fundamentals of character so that change
    does not distract you but assists you
• Perspective – the point is the journey not the destination
• Don’t hide the ball
• Enjoy what you do or move on to another profession


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