April 23, 2022

Dentsply Sirona shares have fallen 10.3% to an 18 month low following the announcement that the company have parted ways with Chief Executive Officer Donald Casey. 

This comes just over a week after the company announced that current CFO Jorge Gomez will be leaving the company to join Moderna Inc. 

The company did not comment on the reasoning behind Donald Casey’s termination, but further clarified that he will cease serving as a member on the company’s board of directors. 

While the exact reasoning behind both departures remains unclear, it has emerged that the company is currently being investigated for alleged securities fraud

Ademi LLP - who are currently investigating Dentsply Sirona - state that the investigation “concerns Densply Sirona’s April 19 termination of its former chief executive officer Don Casey and the impact of such termination on its business operations and prospects.”

The investigation results from inaccurate statements Dentsply Sirona may have made regarding its business operations and prospects.

In the same press release, the dental technology manufacturer announced less than favourable preliminary first quarter results.

Net sales are expected to be approximately $965 million, showing a decline of 1.4% in comparison to the previous year and quite short of the $1.02 billion that analysts expected he company to achieve. 

The company also reported that adjusted earnings per share will fall in the range of $0.48 - $0.52, which is some way below the consensus earnings estimate of $0.67. 

Dentsply Sirona have attributed decreased revenue to “weaker sales performance in the United States, global supply chain challenges, and foreign exchange headwinds,” according to the press release. 

The company announced John Groetelaars - who previously served on the Board of Directors - has been announced as the company’s interim CEO. Additionally, Barbara Bodem was announced as Interim Chief Financial Officer. 

In the company’s press release, Groetelaars said:

“The Board is confident that renewing the Company’s focus on execution will stabilize the business and deliver strong performance despite ongoing macroeconomic challenges. This will be my focus from day one, and I am prepared to leverage my prior executive leadership experience as I work with the rest of the Board and management team to drive the Company’s strategy and advance its vision to transform dentistry and improve oral health globally.”

It’s hard to say whether the COVID-19 pandemic is a direct cause of the company’s financial difficulties - or whether it’s being used as a bandaid to hide the symptoms of a much deeper issue. 

As always, the Insitute of Digital Dentistry will keep you updated with any further developments.

About the author 

Dr Ahmad Al-Hassiny

Dr Ahmad is a global leader in digital dentistry and intraoral scanners, carrying out lectures as a KOL for many companies and industry. He is one of the few in the world who owns and has tested all mainstream scanners and CAD/CAM systems in his clinic. Dr Ahmad Al-Hassiny is also the Director of The Institute of Digital Dentistry (iDD), which is a world-leading digital dentistry education provider. iDD offers live courses, masterclasses, and an online training platform, with a mission to ensure dentists globally have easy and affordable access to the best digital dentistry training possible.

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