Overview
Earlier this year, insightsZ made predictions about 3 major intraoral scanner model launches in FY 2024. SEP 2024 XRAY launched the Primescan 2, which will soon be at the centre stage of the upcoming DS World event in Las Vegas, to be organized in upcoming weeks.
insightsZ continues to monitor USFDA filings, Patent applications, Premarket Notifications, Premarket Applications, GUDID registrations and other publicly available databases on a constant basis. This enables us to internally project a rough estimation of the new product introductions and their related timelines.
Our analytics aren't just enabling manufacturers to drive forward their innovation and product strategy, but also empowering C-level management exec’s better decision-making.
In this article, we will try to measure the extent to which our earlier predictions came true concerning Primescan 2’s product features and commercial offering.
Excerpts from insightsZ article published on JUN 4
The Timing of the Launch
Back in the month of APR, when insightsZ predicted the launch of Primescan 2, the forecast was based on the below data points.
FDA Update: Mar’24 XRAY applied for Primescan 2 FDA submissions/pre-market notification. Ideally, GUDID applications are submitted approximately 3 months before the expected commercial launch of the medical device. This laid the foundation of our presumption that a new Primescan model upgrade launch may be around the corner.
Brand Name & under ‘Commercial Distribution’: The indicated brand name in the GUDID application Primescan 2 meant that the new IOS model will represent an improvement of the company’s existing Primescan model. The commercial distribution status pointed out that the device may already be in beta-testing and feedback studies in Q2’24.
A history of launch times: Primescan Connect was launched at DS World in SEP 2022. Not just that, 2 out of 3 XRAY‘s IOS models (incl. Omnicam and Primescan Connect were launched at DS World, Las Vegas – based on the company’s historical launch timeline data; The only exception being the Primescan launch, which took place at IDS 2019 in Cologne, Germany).
insightsZ Verdict – Based on the above factors, it was evident that XRAY may leverage upcoming DS World as a launch event for Primescan 2 – possibly generating greater commercial momentum for the launch. DS World being the largest marketing + education event for the company, XRAY clearly succeeded in picking a great timing for the launch.
Snapshot of the FDA GUDID Application; available in APR 2024 at FDA Website
Link here: (https://fda.report/GUDID/E27668310150)
This page includes the latest FDA filings for Sirona Dental Systems G M B H. Currently, you will find the latest 100 filings for Premarket Notifications, Premarket Applications, De Novo Applications, and GUDID registrations.
Wireless and Cloud Connectivity
insightsZ speculated that Primescan 2 may feature wireless connectivity and better cloud integration, based on the following information sources + assumptions:
Almost all major global IOS manufacturers are already leading the category in terms of migration to cloud. In recent years, 3Shape migrated to cloud based services with 3Shape Unite™, whereas MEDIT launched MEDIT Apps and iTero is setting new benchmarks with Exocad-backed cloud integration services. Based on these trends, it’s just a natural progression for Primescan to enable better integration with cloud and offer additional cloud-based diagnostic and storage services, among others.
The patent number Publication Number: WO 2023/174917 A1 published on SEP 21 2023 confirmed that Dentsply’s intraoral scanner will possibly be wireless and confirmed that it may feature better integration with cloud-based services.
Despite this, insightsZ couldn’t accurately predict that Primescan 2 will become the first cloud-native IOS model – establishing a new category benchmark when it comes to connectivity, access and sharing data among providers’ infrastructure and cloud-based services ecosystems. Based on XRAY’s PR, DS Core allows Primescan 2’s scan data to be captured directly on the cloud platform, allowing dentists to use their scanner anywhere, anytime.
Additionally, insightsZ failed to predict that Primescan 2 wouldn’t require any dedicated hardware – and that dentists can use it with any computer, laptop, tablet or other mobile device with an internet connection.
Excerpts from Patent Applications
Source: WIPO, Intl Publication Number: WO 2023/174917 A1 Publication date: SEP 21 2023
Pricing Estimates
May 2024 insightsZ predicted Primescan 2 to be priced at a premium of additional USD 4K on the existing entry-level IOS model Primescan Connect, which is retailed at anywhere between $ 18-22 K depending on the region (insightsZ estimates Primescan Connect's ASP to be USD 18 K).
Fast forward to SEP 2024, it is now confirmed that Primescan 2 has a sticker price of USD 24,995.
Our initial estimates were based on our findings that at the time of launch, new IOS models are priced as much as 20-25% higher than the company’s existing leading IOS brand (within the same price category). Note: this pricing estimate didn’t consider the TCOO (Total cost of ownership) and any ongoing license fee or cloud-based subscription services fees. You can find out more about the pricing development index of leading IOS brands here.
Broadly speaking, the IOS category has undergone a major change in the last 24 months, especially as value brands (mostly from PRC) gained a stronger foothold in EU and the Americas – leading to increased competition, ASP declines and eventually margin erosion.
insightsZ research found that there is a fast-growing subset of price-sensitive customers who were completely excluding Top-5 IOS brands from their consideration set. Like expected, many more manufacturers are responding by lowering their price point with the launch of new IOS brand extensions, while continuing existing IOS products at premium price levels. This tiered pricing strategy is increasingly enabling the Top 5 manufacturers to cater products to a significantly broader part of the market, while protecting the profits of its existing offering.
However, contrastingly enough, going further down the value-chain, brand teams continue to stay highly vigilant about the margin leakage – that is, defending against unnecessary giveaways + discounts, segmenting the offering, passing on changes in cost to serve, and pricing in additional sources of value (e.g., service). SaaS and value-added services are one area that allows the IOS manufacturers to exactly capture this value.
To summarize, this approach is still allowing IOS manufactures to expand their profitability over the lifecycle of the product in the dental office, without disrupting competitive dynamics or customer expectations.
Battery Performance
insightsZ earlier estimated that once commercially available, Primescan 2 may demonstrate a battery-lifespan anywhere between 40-55 mins. However, in this area, Primescan 2 is clearly far behind TRIOS 5, which has set the benchmark in terms of overall battery utilization performance. In other words, based on information available in public domain, Primescan 2‘s battery performance significantly underperforms that of TRIOS 5‘s. Not just that, even MEDIT i700 WL and Shining 3D Aoralscan 3's battery performance far outperforms that of XRAY’s new IOS.
Of course, our initial estimates were based on the assumption that Primescan 2‘s battery performance needs to be at least as good as, if not better than TRIOS 5, in order to make it to the consideration set of the prospective users. However, insightsZ believes that Primescan2’s overall battery performance to improve in medium/long term with future software updates.
insightsZ continues to closely monitor the Global IOS & SaaS categories, in addition to other high-margin, high-growth categories. Stay tuned for more!
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The content of this website is NOT an investment advice and does not constitute any offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial circumstances. Although the content in the website articles has been taken from sources that are believed to be accurate, no warranty or representation is made by insightsZ as to its correctness, completeness, timeliness or accuracy. insightsZ does not assume or undertake any duty to advise any person or investor, and accept no liability whatsoever for any direct, indirect or consequential loss arising from or in connection with any use or reliance of this Information or anything contained in it. insightsZ is not a registered investment, tax or legal advisor or a broker/dealer.
How does insightsZ gather market data?
insightsZ analyses data from a wide variety of resources incl. financial statements, market trends, market research surveys and industry reports.
insightsZ engages with industry experts, attends conferences, and networks with professionals in the dental industry to get firsthand insights and perspectives on market developments.
insightsZ also relies on social listening tools, share of search tools, and other search index tools. Additionally, we also monitor USFDA filings, information about product recalls, USPTO (US Patents and Trademarks Office) patent applications, EPO (European Patent Office) patent applications, CE applications, Premarket Notifications, Premarket Applications, GUDID registrations and other publicly available databases.
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