HENRY SCHEIN INC (HSIC)

Henry Schein, Inc. is a solutions company for health care professionals, powered by a network of people and technology. It describes itself as the world's largest provider of health care products and services primarily to office-based dental and medical practitioners, as well as alternate sites of care. The company positions itself as a trusted advisor that helps customers run more efficient and successful businesses so practitioners can provide better clinical care. It has 94 years of experience distributing health care products.

The company operates through three reportable segments. Global Distribution and Value-Added Services distributes national brand and corporate brand merchandise, equipment and related technical services to the global dental and medical markets. It also provides value-added services such as financial services, continuing education, consulting and other practice services. Global Specialty Products manufactures, markets and sells dental implants and biomaterials, endodontic, orthodontic and orthopedic products, and other health care-related products and services. Global Technology develops and distributes practice management software, e-services and other products for health care providers. The company stocks more than 300,000 branded and Henry Schein corporate brand products.

Henry Schein serves more than one million customers worldwide. They include dental practices, laboratories, physician practices and ambulatory surgery centers, as well as government and institutional health care clinics, home health providers and other alternate care clinics. The customer base ranges from sole practitioners and small offices to large group practices and dental support organizations (DSOs). Office-based practices typically place frequent, small orders and need rapid, reliable and substantially complete fulfillment. The company cites tailwinds such as an aging population, greater emphasis on preventive care, improved access to care, and the shift of procedures from hospitals to physician offices and ambulatory surgery centers. It also notes that customer consolidation and cost containment favor distributors with broad offerings and could raise demand for practice management technology.

The company is headquartered in Melville, New York, and employs more than 25,000 people, about 48% in the U.S. and 52% elsewhere. It has operations or affiliates in 34 countries and territories. Its infrastructure includes 38 distribution centers with over 5.4 million square feet and 17 manufacturing facilities with 0.6 million square feet. It manufactures certain specialty products (implants, endodontics, orthopedics) in-house and outsources some products to third parties. Raw materials come from distributors or mills, and although no single supplier is material, some are sourced from a single or limited number of suppliers. Competition is intense. In U.S. dental distribution the main rivals are Patterson Dental and Benco Dental. In U.S. medical distribution they are McKesson and Medline. Outside the U.S. the competitors are mainly local and regional companies. Specialty competitors include Straumann, Envista, Zimvie and Dentsply Sirona, and in software the company competes with providers such as Eaglesoft, Carestream Dental, Open Dental and Epic Systems.