Benco hit with two new Antitrust lawsuits

Well looks like there could be more coming. Arizona filed a suit http://www.dentistrytoday.com/news/todays-dental-news/item/3994-benco-hit-with-another-antitrust-action

And now individuals in states are starting to file suits, these could be huge!! The patients of the dentists are going to file suits
https://www.pacermonitor.com/public/case/25863220/Kramer_v_Henry_Schein,_Inc_et_al

Thanks Chuck!

 

Wow, this may be the death nail for Benco.

 

It's not looking good for Schein either. This isn't going to play well long term if these keep happening. Where's there smoke there's fire.

 

There is a very real possibility these lawsuits will be enough to sink Benco. With their discounted business model and limited reach, it's doubtful they've got a war chest deep enough to wage this battle. Live by the sword, die by the sword...

Benco and Schein both look pretty dirty here. Patterson is likely only guilty of allowing ignoramuses to sit at the head of the table who (despite their company paid MBAs) don't understand the rules of anti competitive behavior.

 

It is highly unlikely that Benco is around in a year.

 

Based on what Intel? They're being sued? Lacking a war chest? The Cohen's have the money to fight or pay as it were. I'm not so sure they'll be damaged as much as people think. It'll hurt sure but having to sell or close up shop? Nah, just don't see it.

 

Doesn't take high level intel to look at the math.

HSIC annual sales = $12.5B. $38m set aside for fines = roughly .3% of current year sales
PDCO annual sales = $5.4B. $30m set aside for fines = roughly .55% of current year sales
Benco annual sales = $565m. $30m set aside for fines = roughly 5.5% of current year sales

If this shit continues into class action with more states and greedy dentists jumping on the anti-distributor litigation train, where do you think that money comes from? It's already priced into HSIC and PDCO current stock price. It will come to light soon that the Cohens were the ring leaders of this tomfoolery. You think Benco is carrying margins and free cash strong enough to weather this looming storm? I think not.

 

And you get your sales numbers of Benco from where? I've heard well north of that figure and regardless go troll and speculate on your own companies board. If you've got truth to offer I welcome it but your spouting BS and innuendo nothing more, regarding a privately held company. Bitter much at your losses to their reps it would seem...

 

Those number are correct. Benco sales have been falling. They peaked around $800 million. Margin have also been falling. Reps are leaving.

 

Most of the reps leaving were terminated. Few actually left on their own.

 

Not trolling or bitter. I'm not a retail rep and most certainly not losing business to Benco. Just because they are privately held, doesn't mean the sales data isn't available. Believe when I say this is a much more serious situation than you might think. With an unsustainable business model as the platform, Benco is on shaky ground here. Why do you think Adec, Sirona, and KKG Imaging haven't opened them? Certainly not because we don't want the incremental sales.

 

What's funny is your lack of knowledge, as KKG had not only opened them but does a robust business with them. Also adec and Sirona are still very tightly controlled regarding distribution as they've always been. Benco used to sell Adec until they wanted the Lions share of the vote business and they said no thanks and walked away. Sirona until recent years was exclusive to Patterson ($100m agreement) and have opened only Schein, who was their largest customer to begin with having sold Sirona in all markets aside from North America prior. So not being a retail rep, what are you other then someone who is operating on assumptions and innuendo.

 

not a benco guy here, but Sirona might be opened to 3rd distributor or more as head office desperately needs growth. It can't be done as of now yet due to the way current agreements are.

 

Benco has Dexis and iCat?

 

https://www.kavo.com/en-us/benco-dental-supply-co-8

 

The link is cute, but Dexis and iCat aren't available through Benco. Search for yourself.

 

And you are? I work at Benco and have sold an iCat V17 recently. I've also had a Dexis Rep at a recent sales meeting talking about platinum sensors... Also have a colleague who sold an iCat upgrade early summer. Go home your drunk and a troll unless you want to dispense with more BS and supposed wisdom and "truth".

 

https://www.ada.org/en/publications/ada-news/2019-archive/january/court-approves-$80-million-settlement-in-class-action-lawsuit