Align Technology, Inc. (NASDAQ:ALGN) recently announced collaboration with a provider of holistic, digital and emotional dentistry solutions for dental clinics — Digital Smile Design.
Through it, Align Technology will be integrating Digital Smile Design’s methodology in functional and aesthetic dentistry with its end-to-end digital workflow comprising iTero scanning technology and Invisalign clear aligner therapy. This, in turn, will provide practitioners the ability to deliver superior results by using a completely streamlined orthodontic workflow.
Digital Smile Design will also discuss with the practitioners the benefits of using Invisalign system and iTero Element scanners as the digital solutions for tooth movement and scanning. We believe the integration of Digital Smile Design’s methodology to Align Technology’s core product base will enable the latter to offer better patient care.
Market Potential
Per a 2017 Grand View Research report, the global restorative dentistry market is expected to see a CAGR of 6.7% to reach a worth of $25.9 billion by 2025. Introduction of digital dentistry, growing demand for cosmetic dentistry & implants along with increasing dental practices are expected to drive the niche market. Going by the data, the recent partnership seems to be a prudent and timely one.
Solid Prospects
Align Technology has been consistently witnessing sales growth across its channels. The company has been seeing continued strong Invisalign case volume growth across all customer channels and geographical regions along with solid worldwide teen case growth. Meanwhile, strong uptake of iTero scanners across all geographies has also been contributing to the top line. Moreover, the company continues to see increased uptake of iTero scanners for Invisalign case submissions instead of PVS impressions. Align Technology has also been gaining from shipments of the iTero Element intraoral scanner to China.
In an attempt to widen iTero customer base, Align Technology recently announced a distribution agreement with Benco Dental. Under it, starting Apr 1, Benco Dental will begin distributing iTero Element scanners in the United States. Notably, Benco Dental is a leading privately-owned dental distributor in the United States.
Share Price Movement
Over the past three months, Align Technology’s stock has gained 19.6% in comparison with the industry’s 9.7% rise.
Zacks Rank and Key Picks
Align Technology currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Integer Holdings Corporation (NYSE:ITGR) , Veeva Systems Inc. (NYSE:VEEV) and Hologic, Inc. (NASDAQ:HOLX) .
Integer Holdings projects earnings growth rate of 31.2% for the first quarter. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Veeva Systems’ long-term earnings growth rate is projected at 14.8%. The stock currently carries a Zacks Rank #2 (Buy).
Hologic’s long-term earnings growth rate is projected at 8.9%. The stock presently has a Zacks Rank #2.
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