Align Technology, Inc. (NASDAQ:ALGN) recently inked a global distribution deal with Zimmer Biomet Dental, a subsidiary of Zimmer Biomet (NYSE:ZBH) for its industry-leading iTero Element suite of intraoral scanners.
This deal showcases Align Technology’s commitment to strengthen its portfolio of iTero scanner and services.
More About the Deal
Through this collaboration, Align Technology is expected to leverage Zimmer Biomet Dental’s extensive worldwide salesforce as well as network of dental experts and laboratories. This will likely strengthen the presence of iTero scanners and services in the expanding digital restorative market. The deal will enable Zimmer Biomet Dental’s customers to access Invisalign clear aligners through the iTero platform. This will provide a comprehensive interdisciplinary treatment.
The iTero Element scanner and Zimmer Biomet Dental solutions will collaborate to equip dental clinicians as well as laboratories with multiple digital workflows. Hence, the deal will ensure proficiency and help deliver better patient outcomes. Through this collaboration, the iTero scanner would become the sole intraoral scanner used in the United States and European Zimmer Biomet Institutes.
For investors’ notice, iTero Element scanners and services are already available through Zimmer Biomet Dental in a few select countries in Europe. Distribution of the scanners is slated to expand to the United States, Canada and Japan from October 2019.
Market Prospects
Per Research and Markets, the global dental market is anticipated to reach $35.7 billion in 2023 at a CAGR of 5.59% during the forecast period of 2018 to 2023. Hence, the deal is strategically timed.
Recent Developments
Of late, Align Technology has been investing in several crucial developments to boost its segment of digital dentistry.
In June 2019, the company announced the launch of the iTero Element Foundation intraoral scanner, which is equipped with restorative software. The iTero Element Foundation broadens Align Technology’s portfolio of intraoral scanners that are equipped with high-performance 3D visualization features and designed to cater to the needs of doctors, labs as well as patients.
In March 2019, the company announced its collaboration with Digital Smile Design (DSD) — a pioneer in holistic and digital dentistry solutions. The aim of this deal was to enhance multi-disciplinary dentistry by establishing a streamlined end-to-end digital workflow.
Price performance
The stock has rallied 39.29% in the past year compared with the industry’s 17.47% growth.
Zacks Rank and Stocks Worth a Look
Align Technology currently carries a Zacks Rank #4 (Sell).
Two better-ranked stocks in the broader medical space are Haemonetics (NYSE:HAE) and Baxter (NYSE:BAX) , each carrying a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Haemonetics’ long-term earnings growth rate is expected to be 13.5%.
Baxter’s long-term earnings growth rate is projected at 12.8%.
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Align Technology, Inc. (ALGN): Free Stock Analysis Report
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