UPDATE 2-Straumann FY profit down, but confident for 2009

* Net profit sinks 95 pct but beats forecasts

* Says will outperform shrinking market in 2009

* Shares rise up to 10 percent

(Adds details, CEO comments, background)

By Sven Egenter

ZURICH, Feb 12 (Reuters) - Swiss dental implant maker Straumann Holding AG (STMN.S) forecast it would weather the economic slump better than competitors and gain market share, sending its shares up despite a 95 percent drop in 2008 profit.

The chief executive of the world's second largest producer in the sector said the market for implant, restorative and regenerative dentistry was likely to shrink in 2009, but the group should outperform its peers.

Straumann shares rose 9.5 percent by 0931 GMT to 190 Swiss francs, outperforming a lower European healthcare sector index .SXDP.

It also stole a march on its main rival, Nobel Biocare (NOBN.VX), whose shares rose 2.4 percent after falling around 1.5 percent on Wednesday, when it reported earnings that missed forecasts and gave no guidance for 2009.

"Straumann is sticking to its 2009 outlook, which is good," ZKB analyst Sibylle Bischofberger said in a note. "Straumann is at the moment better positioned than Nobel Biocare and has weathered the weak fourth quarter better."

Straumann said its 2008 net profit after exceptional items was 8.2 million Swiss francs ($7.09 million), hit by writedowns on investments, but above the average forecast of 4 million francs in a Reuters poll.

Straumann had announced writedowns and a 15 percent rise in 2008 sales in local currencies to 779 million Swiss francs on Jan. 16.[ID:nLR409944]

Nobel, the world's largest maker of dental implants, reported a weaker-than-expected fourth-quarter profit on Wednesday [ID:nL9712460]

Straumann CEO Gilbert Achermann told Reuters the market was set to shrink in 2009 despite signs of stabilisation in January. "We expect to outperform the market," Achermann said. "We see a stagnation (of revenue) in local currencies or slight growth."

Straumann shares have outperformed those of Nobel and are now trading at around 15.6 times 2010 forecast earnings, a 50 percent premium over Nobel, due to a product mix that is proving more resilient to the decline in consumer spending.

(Additional reporting by Oliver Hirt; editing by John Stonestreet)