About Henry Schein

Henry Schein, Inc. operates as a solutions company for health care professionals powered by a network of people and technology. The company distributes health care products and services primarily to office-based dental and medical practitioners, across dental practices, laboratories, physician practices, and ambulatory surgery centers, as well as government, institutional health care clinics and alternate care clinics. The company also provides software, technology and other value-added services to health care practitioners. The company’s dental businesses serve office-based dental practitioners, dental laboratories, schools, government and other institutions. The company’s medical businesses serve physician offices, urgent care centers, ambulatory care sites, emergency medical technicians, dialysis centers, home health, federal and state governments and large enterprises, such as group practices and integrated delivery networks, among other providers across a wide range of specialties. The company has operations or affiliates in the United States, Australia, Austria, Belgium, Brazil, Canada, Chile, China, the Czech Republic, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Japan, Liechtenstein, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Singapore, South Africa, Spain, Sweden, Switzerland, Thailand, the United Arab Emirates, and the United Kingdom. The company offers a comprehensive selection of more than 300,000 branded products and Henry Schein corporate brand products through its distribution centers. The company’s infrastructure, including over 3.8 million square feet of space in 29 strategically located distribution and 19 manufacturing facilities around the world, enables the company to historically provide rapid and accurate order fulfillment, better serve its customers and increase its operating efficiency. Segments The company operates through two segments, Health Care Distribution, and Technology and Value-added Services. These segments offer different products and services to the same customer base. The company’s dental businesses serve office-based dental practitioners, dental laboratories, schools, government and other institutions. The company’s medical businesses serve physician offices, urgent care centers, ambulatory care sites, emergency medical technicians, dialysis centers, home health, federal and state governments and large enterprises, such as group practices and integrated delivery networks, among other providers across a wide range of specialties. Health Care Distribution This segment, combining the company’s global dental and medical businesses, distributes consumable products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, dental specialty products (including implant, orthodontic and endodontic products), diagnostic tests, infection-control products, personal protective equipment products (PPE) and vitamins. While the company’s primary go-to-market strategy is in its capacity as a distributor, the company also markets and sells under its own corporate brand portfolio of cost-effective, high-quality consumable merchandise products, and manufacture certain dental specialty products in the areas of oral surgery, implants, orthodontics and endodontics. Technology and Value-added Services This segment provides software, technology and other value-added services to health care practitioners. Henry Schein One, the largest contributor of sales to this category, offers dental practice management solutions for dental and medical practitioners. In addition, the company offers dentists and physicians a broad suite of electronic health records, patient communication services, including electronic marketing and web-site design, analytics and patient demand generation. Finally, the company’s value-added practice solutions include practice consultancy, education, integrated revenue cycle management and the facilitation of financial service offerings (on a non-recourse basis) to help dentists and physicians operate and expand their business operations. Products and Services Dental Products: Includes infection-control products, handpieces, preventatives, impression materials, composites, anesthetics, teeth, dental implants, gypsum, acrylics, articulators, abrasives, dental chairs, delivery units and lights, X-ray supplies and equipment, personal protective equipment (PPE) products, equipment repair and high-tech and digital restoration equipment. Medical Products: Includes branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, X-ray products, equipment, PPE products and vitamins. Software and Related Products and Other Value-Added Products: Consists of practice management software and other value-added products, which are distributed primarily to health care providers, and financial services on a non-recourse basis, e-services, continuing education services for practitioners, consulting and other services. The company offers a broad range of products and services to its customers in the following categories: Consumable Supplies and Equipment: The company distributes consumable products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, dental specialty products, diagnostic tests, infection-control products and vitamins. The company offers over 300,000 branded products, through its distribution centers, to its customers. The company also markets and sells its own corporate brand portfolio of high-quality consumable merchandise products and manufacture certain dental specialty products in the areas of implants, orthodontics and endodontics. Technology and Other Value-Added Products and Services: The company sells practice management, business analytics, patient engagement and patient demand creation software solutions to its dental customers. The company’s practice management solutions provide practitioners with electronic medical records, patient treatment history, analytics, billing, accounts receivable analyses and management, appointment calendars, electronic claims processing and word processing programs, network and hardware services, e-commerce and electronic marketing services, sourcing third party patient payment plans, transition services and training and education programs for practitioners. The company also sells medical software for practice management, certified electronic health records (EHR) and e-Prescribe medications and prescription solutions through MicroMD. The company has technical representatives supporting customers using its practice management solutions and services. As of December 31, 2022, the company had an active user base of approximately 110,000 practices and 380,000 consumers, including users of AxiUm, Dentally, Dentrix Ascend, DentalVision, Dentrix Dental Systems, Dentrix Enterprise, Easy Dental, EndoVision, Evolution and EXACT, Gesden, Jarvis Analytics, Julie Software, Oasis, OMSVision, Orisline, PBS Endo,PerioVision, Power Practice Px, PowerDent, and Viive and subscriptions for Demandforce, Sesame, and Lighthouse360 for dental practices and DentalPlans.com for dental patients; and MicroMD forphysician practices. Repair Services: The company has over 130 equipment sales and service centers worldwide that provide a variety of repair, installation and technical services for its health care customers. Its technicians provide installation and repair services for dental handpieces, dental and medical small equipment, table-top sterilizers and large dental equipment. Financial Services: The company offers its customers solutions in operating their practices more efficiently by providing access to a number of financial services and products provided by third party suppliers (including non-recourse financing for equipment, technology and software products, non-recourse practice financing for leasehold improvements, business debt consolidation and commercial real estate, non-recourse patient financing and credit card processing) at rates that are generally lower than what its customers would be able to secure independently. The company also provides staffing services, dental practice valuation and brokerage services. Business Strategy The key elements of the company's strategy are to increase penetration of its existing customer base; increase the number of customers it serves; leverage its value-added products and services; and pursue strategic acquisitions and joint ventures. Markets Served The company supports its dental and medical professionals through the many SKUs that it offers, as well as through important value-added services, including practice management software, electronic claims processing, financial services and continuing education, all designed to help maximize a practitioner’s efficiency. Seasonality The company’s business is subject to seasonal and other quarterly fluctuations. Sales and profitability generally have been higher in the third and fourth quarters (year ended December 2022) due to the timing of the sale of seasonal products (including influenza vaccine) purchasing patterns of office-based health care practitioners for certain products (including equipment and software) and year-end promotions. In addition, some dental practices delay equipment purchases in the U.S. until year-end due to tax incentives. Competition In the dental market, the company’s primary competitors in the United States (U.S.) are the Patterson Dental division of Patterson Companies, Inc. and Benco Dental Supply Company. Its primary competitors in the U.S. medical market, which accounts for the large majority of the company’s global medical sales, are McKesson Corporation and Medline Industries, Inc., which are national distributors. With regard to the company’s dental software, it competes against numerous companies, including the Patterson Dental division of Patterson Companies, Inc.; Carestream Health, Inc.; Carestream Dental LLC; Centaur Software Development Co Pty Ltd. (d.b.a. dental4windows, dental4web); Open Dental Software, Inc.; PlanetDDS LLC; Good Methods Global Inc. (d.b.a. CareStack); and Curve Dental, LLC. In other software end markets, including revenue cycle management, patient relationship management and patient demand generation, the company competes with companies, such as Vyne Therapeutics Inc.; EDI-Health Group, Inc. (d.b.a. Dental X Change, Inc.); Weave Communications, Inc.; and Solutionreach, Inc. The medical practice management and electronic medical records market is fragmented and the company competes with numerous companies, such as the NextGen division of Quality Systems, Inc.; eClinicalWorks; Allscripts Healthcare Solutions, Inc.; and Epic Systems Corporation. The company also faces significant competition internationally, where it competes on the basis of price and customer service against several large competitors, including the GACD Group; Proclinic SA; Lifco AB; Planmeca Oy; and Billericay Dental Supply Co. Ltd. Regulation Certain of the company’s businesses are subject to local, state and federal governmental laws and regulations relating to the distribution of pharmaceuticals and medical devices and supplies. Among the United States federal laws applicable to the company are the Controlled Substances Act, the Federal Food, Drug, and Cosmetic Act, as amended (FDC Act),Section 361 of the Public Health Service Act and Section 401 of the Consolidated Appropriations Act of the Social Security Act, as well as laws regulating the billing of and reimbursement from government programs, such as Medicare and Medicaid, and from commercial payers. Under the Controlled Substances Act, as a distributor of controlled substances, the company is required to obtain and renew annually registrations for its facilities from the United States Drug Enforcement Administration (DEA) permitting it to handle controlled substances. The company is also subject to other statutory and regulatory requirements relating to the storage, sale, marketing, handling, reporting, record-keeping and distribution of such drugs, in accordance with the Controlled Substances Act and its implementing regulations, and these requirements have been subject to heightened enforcement activity in recent times. The company is subject to inspection by the DEA. Certain of its businesses are also required to register for permits and/or licenses with, and comply with operating and security standards of, the DEA, the United States Food and Drug Administration (FDA), the United States Department of Health and Human Services (HHS), and various state boards of pharmacy, state health departments and/or comparable state agencies, as well as comparable foreign agencies, and certain accrediting bodies, depending on the type of operations and location of product distribution, manufacturing or sale. On medicines for humans, the company is regulated under Directive No. 2001/83/EC of 6 November 2001, as amended by Directive 2003/63/EC of 25 June 2003, and EU Regulation (EC) No. 726/2004 of 31 March 2004. The company is also subject to certain United States and foreign laws and regulations concerning the conduct of its foreign operations, including the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act, German anti-corruption laws and other anti-bribery laws and laws pertaining to the accuracy of its internal books and records, which have been the focus of increasing enforcement activity globally in recent years. The company is directly or indirectly subject to numerous and evolving federal, state, local and foreign laws and regulations that protect the privacy and security of personal information, such as amended, and implementing regulations (HIPAA); the Controlling the Assault of Non-Solicited Pornography and Marketing Act; the Telephone Consumer Protection Act of 1991; Section 5 of the Federal Trade Commission Act; the California Privacy Act (CCPA); and the California Privacy Rights Act (CPRA) that becomes effective on January 1, 2023. The company also sells products and services that health care providers, such as physicians and dentists, use to store and manage patient medical or dental records. These customers and the company are subject to laws, regulations and industry standards, such as HIPAA and the Payment Card Industry Data Security Standards, which require the protection of the privacy and security of those records. While the company has substantially compliant programs and controls in place to comply with the General Data Protection Regulation (GDPR), CCPA, Personal Information Protection Law (PIPL), CPRA and state law requirements, its compliance with data privacy and cybersecurity laws is likely to impose additional costs on the company. Proprietary Rights The company holds trademarks relating to the ‘Henry Schein’ name and logo, as well as certain other trademarks. History Henry Schein, Inc. was founded in 1932. The company was incorporated in 1992.

Country
Industry:
Medical, Dental, and Hospital Equipment and Supplies
Founded:
1932
IPO Date:
11/03/1995
ISIN Number:
I_US8064071025
Address:
135 Duryea Road, Melville, New York, 11747, United States
Phone Number
631 843 5500

Key Executives

CEO:
Bergman, Stanley
CFO
South, Ronald
COO:
Ettinger, Michael