Philips Medical Systems closed its North American dental imaging division in January, returning distribution rights and service responsibilities for a panoramic x-ray unit to its manufacturer, Soredex of Helsinki.
Soredex Medical Systems, the firm's U.S. subsidiary, will continue to market the Cranex panoramic system through dental dealers, but also plans to sell the system to hospitals and dental radiology clinics, said president John R. Hogan.
SMS of Conroe, TX, was formed about a year ago to develop medical sales of the Soredex high-end Scanora multidirectional, tomographic x-ray system.
Scanora, which sells for about $200,000 compared to $25,000 for the panoramic x-ray system, is targeted at oral surgeons and craniofacial implantologists (SCAN 1/17/90). SMS also sells a specimen x-ray unit that complements Soredex mammography equipment distributed in North America by AFP Imaging.
"We are going to try to maintain all the dental dealers that were in place (under Philips). But we will also offer that product line to our medical dealers. There has been increasing interest from hospitals in purchasing panoramic equipment for trauma patients. Many dentists can't afford a panoramic (x-ray system). They will not refer patients to another dentist, but they will refer them to a hospital," Hogan said.
Some medical imaging dealers selling mammography systems under AFP have expressed interest in the panoramic unit, and SMS will make it available to them as well, he said.
SMS has taken over the Philips relationships with 14 independent sales representatives who provide direct contact and support to the dental dealer network in the U.S. and Canada. The firm has also hired Philips' dental technical support manager and is boosting its administrative staff, he said.
Philips' decision to close the North American dental division was part of the company-wide restructuring and rationalization process, said Janet Collins, director of corporate communications for Philips Medical Systems North America.
"The dental business was not consistent with our distribution strength in radiology and cardiology. Strategically, it didn't fit with other company objectives," Collins said.
Philips will continue to sell an intra-oral product line through a joint venture formed with Villa Medical Systems last year. Manufacturing and worldwide distribution of that dental line is handled by the Italian venture, she said.
