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Straumann Group [SWX:STMN], the Swiss dental-implants maker, is opportunistic towards acquisitions in Brazil, but is more likely to grow organically, said Matthias Schupp, Executive VP for Latin America and CEO of its Brazilian subsidiary Neodent.

The executive noted that Straumann is still interested in venturing into Brazil’s low-cost dental-implant market. While it does not rule out entering the sector through an acquisition, it has yet to find a suitable target, he added.

Targets of interest should have, among other things, a market share of at least 10%, as well as technology solutions and compliance practices compatible with Neodent’s standards, he said.

In February 2017, Straumann’s CEO Marco Gadola told this news service that the company was considering acquiring a Brazilian or Argentinean peer in the low-cost segment of dental implants.

Schupp acknowledged that Brazil’s dental-implant market is likely to face consolidation in the upcoming years as many players are in financial distress due to the country’s recent economic downturn, which saw its GDP shrink by about 8% from 2014 to 2016.

Plans by the European Union to impose stricter regulations on medical devices in May 2020 are also expected to impact Brazilian dental-implant companies, he noted. “Dental-implants makers need critical mass and local producers cannot rely only on domestic sales,” he pointed.

Neodent serves clients in nearly 60 countries, including the US (the world’s biggest market for dental implants), either through branch offices or partnerships with local distributors. It aims to start exporting to Japan by the end of June and into Russia around September, Schupp said.

As part of its strategy to expand its product offering in Brazil, in January Straumann began offering its recently acquired line of clear aligners in the country, the executive noted.

The Swiss company entered the clear-aligner market in August 2017 through the purchase of Texas-based ClearCorrect for a consideration of approximately USD 150m, as reported.

Schupp is optimistic about the sales potential of clear aligners in Brazil as only one other product, Invisalign, imported from San Jose, California-based Align Technology [Nasdaq: ALGN], offers the same quality, he noted.

Straumann, however, plans to use Neodent’s network of more than 20 offices throughout Brazil to gain a competitive edge as it would be able to deliver clear aligners in up to seven days, the executive noted. It also expects to start exporting its ClearCorrect products to Chile in 1Q19 and Argentina in 1H19, he added.

The company has thus far invested about BRL 100m (USD 26.8m) to build and equip a new plant in Parana state to manufacture Neodent and ClearCorrect products. The facility, which is expected to start running in 4Q19, will have 10,000 square meters of manufacturing space in its first phase, Schupp said.

Straumann set foot in Brazil in 2012 by purchasing a 49% stake in Neodent for BRL 549m. In April 2015, it paid BRL 680m to take full control of the business, as reported.

According to Schupp, Straumann controls 52% of Brazil’s dental-implant market through Neodent, which specializes in the mid-ranged value segment. Its premium brand Straumann, which focuses on the upper-range value market, holds about 5% of market share, he added.

Other providers of dental-implant solutions in Brazil include Sao Paulo-based S.I.N. Implante, a portfolio company of Argentina-based private equity firm Southern Cross Group; Sao Paulo-based Implacil De Bortoli; and Aruja-based Conexao Sistemas de Proteses, as reported.

This news service reported earlier this month that Implacil was considering a stake sale to bolster exports and accelerate the launch of new products. The company booked 2018 revenues of BRL 45m and expects to surpass the BRL 50m-mark this year, the report added.

S.I.N. Implante, for its part, sold a 75% to the Southern Cross in October 2009 for an undisclosed amount, as reported.

As of 18 February, Straumann had a market cap of CHF 11.5bn (USD 11.45bn).