D.O., Expanding Influence in the Implant Market Through Technology

Ostem Implant, which holds significant influence in the domestic implant market, is staggering due to an embezzlement scandal. The company’s internal control system and accounting management have revealed vulnerabilities, leading to a decline in trust. Even though the embezzlement incident does not directly impact product quality significantly, considerable repercussions are expected within the implant market as latecomers have caught up closely.

In the domestic implant market, the top five companies?including Ostem Implant, Dentium, Dio, Neobiotech, and Megagen Implant?occupy more than 90% of the market share. Since the quality differences among implant products are not substantial, price, brand awareness, and sales capabilities greatly influence product selection. While Ostem Implant struggles to address the embezzlement case and tighten internal controls, competitors are likely to expand their market share through aggressive sales strategies. Asia Economy analyzes the business structures and current status of Dentium and Dio and examines their growth potential.

[Asia Economy Reporter Hyungsoo Park] Dio, a latecomer in the domestic implant industry, continues to grow through technological prowess. By consistently developing technologies that reduce the discomfort patients experience during implant surgery, Dio has consecutively launched implant solutions welcomed by both hospitals and patients.

Founded in January 1988, Dio is a manufacturer of dental medical devices. In 2014, Dio launched the world’s first digital implant system, ‘Dio Navi.’ This system applied digital technology to traditional surgical implant procedures. Based on oral scanner and CT imaging data, simulated surgeries are conducted, and optimal implant positions, angles, and depths tailored to the patient’s oral condition are pre-determined to provide surgical guides. Temporary prostheses designed by computer are 3D printed and then actual implants are performed according to the surgical guide.

Unlike conventional implant procedures that require gum incisions and suture removal, digital implants involve minimal incisions, resulting in less pain and reducing surgery time to under 10 minutes. The number of hospital visits for patients is also reduced to about three times with digital implants, less than half compared to traditional methods. Digital implant solutions are more effective for complex cases such as edentulous patient surgeries.

Dio Navi provides oral scanning, simulation software, implants, and 3D printing necessary for digital implant surgeries. Through this, it is expanding its market share domestically and internationally. Since its launch in 2014, Dio Navi has become the most widely used representative digital guide system in Korea. In July last year, eight years after its release, it achieved a cumulative implant hole count of 500,000.

Dio has also established all necessary solutions for dental treatment, including digital orthodontic solutions and digital support systems. Leveraging accumulated know-how and advanced technology, Dio introduced the digital clear aligner ‘Dio Ortho Navi,’ differentiated from existing transparent orthodontic brands. Digital orthodontics stores the patient’s scan files on a computer before treatment and visualizes the post-treatment appearance. Using patient-customized 3D printed brackets and wires, it adjusts angles and accelerates tooth movement, shortening the correction period.

The edentulous solution called Dio Navi Full Arch was developed for patients who have used dentures for a long time or have left tooth loss untreated without further treatment. Dio also signed an annual supply contract worth approximately 8 billion KRW for edentulous solutions with a Chinese medical device distributor.

Dio is also leading in implant surface treatment technology essential for shortening the osseointegration period required during implant surgery. Implant companies develop various surface treatment technologies to maximize osseointegration effects. The SLA method is the most widely used and stable surface treatment technology globally in terms of quality. Dio commercialized the hybrid SLA (HSA) surface treatment, which improves SLA technology to promote osseointegration and enhance long-term stability. Just before surgery, implants undergo UV treatment to remove any organic contaminants on the surface and convert it to superhydrophilic, thereby shortening the osseointegration period. In 2018, Dio launched a UV activator that significantly improved usage efficiency in dental clinics by reducing irradiation time compared to previous products. The UV Activator 2, which reduced irradiation time from 15 minutes to 20 seconds, received approval in the US and European Union in July 2019 and expanded overseas. Dio also developed the world’s first UV treatment for implant abutments, maintaining healthy gums around implants and increasing implant survival rates.

Full-scale growth in the US is also expected starting this year. Dio is strengthening its sales capabilities by collaborating with large dental networks in the US. Between 2016 and 2018, Dio focused on establishing overseas subsidiaries, and overseas sales began to increase significantly from 2019. The company exports to 70 countries worldwide, with exports accounting for 70% of sales.

Dio recorded cumulative sales of 110.7 billion KRW and operating profit of 31.4 billion KRW in the third quarter of last year, marking increases of 30% and 58%, respectively, compared to the same period the previous year.

Dio Holdings, the largest shareholder of Dio, is reviewing various strategic options, including the sale of its shares. In a December disclosure response last year, it explained that after selecting an advisory firm, it is proceeding with necessary procedures in detail. Considering a sale, if a buyer capable of creating synergy emerges, additional growth could be considered.

This content was produced with the assistance of AI translation services.