UPDATE 2-Straumann 2008 net profit to be hit by writedowns

* Says writedowns will hit 2008 net profit

* Says will still pay a dividend

* Expects to grow more than market in 2009

* Shares fall 3.5 percent

(Adds details, background)

By Katie Reid

ZURICH, Jan 16 (Reuters) - Straumann Holding AG (STMN.S) said writedowns will hit its 2008 net profit and sales growth had eased in the fourth quarter but the Swiss dental implant maker expects to grow in 2009 despite a stagnant market.

Straumann, which is the No.2 maker of dental implants, said on Friday it would make a small profit in 2008 but writedowns on intangible assets related to previous acquisitions would weigh on its bottom line.

The value of the assets, which totalled 330 million Swiss francs ($295.4 million) on June 30, had fallen by around half due to the economic crisis, Straumann said. The writedowns will be announced with the full-year results on Feb. 12.

By 0852 GMT, shares in the group, which lost some 40 percent last year, had fallen 3.5 percent to 172.80 Swiss francs, underperforming a 0.2 percent rise in the European healthcare index .SXDP, while shares in rival Nobel Biocare (NOBN.VX) were 3.7 percent weaker.

Full-year revenue rose 15 percent in local currencies to 779 million francs, in line with the group's guidance, Straumann said, adding that it would still pay a 2008 dividend.

However, fourth-quarter sales growth eased to 5 percent after an 11 percent increase in the previous quarter as demand weakened in September, October and November, stabilising in December.

"The market, especially in the U.S., is slowing down more than anticipated, in line with the recent quarter of (U.S. rival) Biomet. Read-through to Nobel Biocare is negative as it has even more sales in the U.S.," said Kepler Capital Markets analyst Florian Gaiser.

STAGNANT MARKET

Implant makers are facing tough trading conditions due to consumer curbing their spending on dental treatments that are not absolutely necessary as they worry about the severity of the economic downturn.