Henry Schein 2003 Annual Report Download - page 12

10 Henry Schein, Inc.
ATAGLANCE
DENTALGROUP MEDICALGROUP
In 2003 the Dental Group recorded sales of $1.4 billion, 41% of
total Company revenues, which represents growth of 11% over
2002, including 9% growth in consumable merchandise sales
and 18% growth in equipment sales and service revenue.
The Dental Group includes Sullivan-Schein Dental in the United
States, Henry Schein Arcona in Canada, and the Zahn Dental
laboratory supply business, and has approximately 30% share of
the estimated $4.4 billion U.S. and Canadian dental distribution
market. We serve over 75% of the estimated 135,000 U.S. and
Canadian dental practices, and approximately 15,000 dental
laboratories. We are also a major supplier to large group
practices, schools, government and other institutions.
The Group includes more than 900 field sales consultants
(including equipment sales specialists), nearly 600 equipment
service technicians, and 84 equipment sales and service
centers. Counseling the Group from the dental practitioners’
perspective is a Dental Advisory Board that includes many
leaders of the profession.
We support dentists by offering more than 70,000 SKUs,
including many Henry Schein exclusives, such as Oral CDx®,
BriteSmile-To-Go™, Debacterol®, X-Rite’s ShadeVision™,
BruxGuard™, Norad®, Titan Instruments and Pentron®dental
laboratory products.
We also provide dentists with several important technology-
based value-added services, including our DENTRIX®and Easy
Dental®practice-management software systems, financial
services, continuing education and dental electronic claims
processing. PRIVILEGES™, our highly successful and innovative
customer loyalty program helps us attract, retain and reward
customers, and provides us with a platform to introduce our other
products to our customers. By the end of 2003, PRIVILEGES™
had enrolled more than 16,000 members, and these members
are increasing their business with Henry Schein at a rate far
above that of our average customer.
The Medical Group posted record sales of $1.3 billion in 2003,
22% higher than the previous year, representing 40% of total
Company revenues.
Henry Schein’s Medical Group serves over 45% of the estimated
230,000 U.S. office-based physician practices and has
approximately 16% of the estimated $7.1 billion market. We offer
over 30,000 SKUs to the physician marketplace through three
primary brands: Henry Schein Medical, which offers a full
portfolio of products and services to all 50 states through more
than 230 telesales representatives; Caligor, with more than 350
field sales consultants in 41 states offering a similar portfolio of
products and services; and General Injectables and Vaccines
(GIV), whose more than 40 telesales representatives specialize in
vaccines and other injectables and serve practitioners across the
nation. This Group also ships over 25% of the U.S. doses for the
Vaccine for Children’s (VFC) program, and over 25% of the U.S.
influenza vaccine supply to physicians.
During 2003, the Company also acquired Damer & Cartwright, a
specialty distributor of pharmaceuticals focused on oncology,
infertility, hepatitis, transplant and respiratory disease states, and
American Medical Services, a distributor of oncology drugs.
The Medical Group also serves institutions, surgical centers,
alternate-care facilities and acute-care facilities in the northeast
United States, as well as over 70% of the estimated 24,000 U.S.
veterinary clinics. Offering more than 40,000 SKUs to our
veterinary customers, we are a primary vendor to VCA Antech, the
largest provider of clinical petcare in the country.
We are a major supplier to the formulary plans of many
professional groups, such as the American Medical Association
and the American Society of Plastic Surgeons. Already a leading
provider of vaccines, injectables and other pharmaceuticals with
expertise in cold-chain distribution, we are uniquely positioned to
take advantage of the trend toward increased use of vaccines
and injectables in physicians offices and alternate-care settings.
The Medical Group receives the counsel of many leading
medical professionals through its Medical Advisory Board, which
provides valuable insights into practitioners’ needs.