ST. PAUL, Minn. – January 14, 2015 – To help protect against potentially unsafe dental products entering the marketplace, Patterson Companies, Inc. (Nasdaq: PDCO) today announced that it is formalizing its efforts to promote supply chain integrity for its dental customers. The company’s program will assure that products distributed through its Patterson Dental business are sourced directly from the manufacturer – and not through channels carrying deeply-discounted gray market products, which are frequently the same channels carrying counterfeit or other black market products.
“We have worked hard for years to ensure the highest integrity of our supply chain, and we hope that the rest of the dental supply industry will show a similar commitment to secure their own supply chains,” said Scott P. Anderson, Patterson Companies’ chairman and chief executive officer. “We know that this is an issue within our industry and are concerned about the potential problems that could result if it isn’t addressed. Given the potential for dentists to unknowingly purchase counterfeit or dangerous products, we believe that this is a very important matter. Among our highest priorities are our customers’ reputation and their patients’ safety.”
According to the U.S. Food and Drug Administration, the term “gray market” generally refers to products that are sold outside the established distribution chain, typically at a deeply-discounted price (e.g., products intended to be sold abroad, but instead imported and sold in the U.S.). Such products may - or may not – satisfy FDA-related requirements, or other applicable laws and regulations. A significant concern is that products available on the gray market are often indistinguishable from defective or counterfeit “black market” products that travel through those same distribution channels. Such products may have been diverted from planned destruction or even have been recalled. Customers cannot be confident that products purchased through the gray market are genuine, safe or have been handled appropriately.
“The program that we will put in place is designed to help protect our dental customers and their patients from products that may be potentially unsafe,” said Paul Guggenheim, president of Patterson Dental. “By further reinforcing the integrity of Patterson’s supply chain, we can safeguard against the distribution of products that may be unsafe, have been mishandled or are illegal. As a result of our efforts, and as their trusted partner, our customers will know that Patterson Dental is providing them with products that come directly from the manufacturer or its authorized distributors. We are proud to continue to deliver on our commitment to customers and their patients.”
CEO Anderson will present today at the J.P. Morgan Healthcare Conference in San Francisco at 8:00 a.m. PT, and will discuss this topic in further detail.
About Patterson Companies, Inc.
Patterson Companies, Inc. is a value-added distributor serving the dental, companion-pet veterinarian and rehabilitation supply markets.
As Patterson’s largest business, Patterson Dental provides a virtually complete range of consumable dental products, equipment and software, turnkey digital solutions and value-added services to dentists and dental laboratories throughout North America.
Patterson Veterinary is a leading distributor in the U.S. and U.K. of consumable veterinary supplies, equipment and software, diagnostic products, vaccines and pharmaceuticals predominantly to companion-pet veterinary clinics.
Patterson Medical is the world’s leading distributor of rehabilitation supplies and non-wheelchair assistive patient products to the physical and occupational therapy markets. The unit’s global customer base includes hospitals, long-term care facilities, clinics and dealers. This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond the Company’s ability to control. Forward-looking statements also include those preceded or followed by the words "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," “projects,” “should,” "targets" and/or similar expressions. These forward-looking statements are based on the Company’s current estimates and assumptions and, as such, involve uncertainty and risk. Forward-looking statements are not guarantees of future performance, and actual results may differ materially from those contemplated by the forward-looking statements because of a number of factors, including the factors described in Item 1A of the Company’s most recent Annual Report on Form 10-K, which factors are incorporated herein by reference. Any forward-looking statement in this release speaks only as of the date in which it is made. Except to the extent required under the federal securities laws, the Company does not intend to update or revise the forward-looking statements.
# # #
For additional information, contact:
Ann B. Gugino
Vice President & CFO