Align Technology-Glidewell Dental Deal To Boost ITero Uptake

Align Technology, Inc. (NASDAQ:ALGN) recently signed an agreement with Glidewell Dental to distribute the iTero Element intraoral scanning system with the latest glidewell.io In-Office Solution in North America.

The scanner will be powered with Glidewell’s fastdesign.io software. Notably, the glidewell.io In-Office Solution is a chairside restorative ecosystem that simplifies delivering and prescribing laboratory-quality dental restorations.

Per management, the collaboration will widen iTero’s reach to more than 50,000 dentists using Glidewell services. Notably, the company aims a launch in the first-quarter of 2018. Moreover, the deal is expected to enhance the efficiency and accessibility of same-day restorations for the joint customers.

Align Technology, which manufactures and markets a system of clear aligner therapy, intra-oral scanners and CAD/CAM (computer-aided design and manufacturing) digital services used in dentistry, orthodontics and dental records storage, has been working hard to expand work flow options of iTero scanners. In this context, the company signed a distribution agreement with Patterson Dental, a business unit of Patterson Companies, Inc. (NASDAQ:PDCO) , in August.

Per the non-exclusive agreement, Align Technology’s iTero Element intraoral scanning system will be available as part of Patterson Dental’s CAD/CAM portfolio in the United States and Canada. In May, Align Technology had launched a software upgrade to its iTero Element intraoral scanner that is capable of comparing patient scans over time with the latest TimeLapse technology.

Also, the company collaborated with exocad GmbH in March, whereby the integrated portfolio will result in high-tech workflow solution for efficient scanning, designing and manufacturing of in-house dental prosthesis. In February, the company announced the addition of digital workflow for Nobel Biocare implants to its iTero intraoral scanner portfolio.

Interestingly, revenues from the Scanner and Service segment improved 25% in the last reported third quarter of 2017. Moreover, the company saw increased adoption of iTero scanners for Invisalign case submissions instead of PVS impressions, especially in North America, thereby driving Invisalign utilization. Per a report by Research And Markets, the global market for 3D Dental Scanners is projected to see a CAGR of 10.2% over the 2017-2021 period.

Considering the market potential and Align Technology’s current developments in the Scanners and Services space, this collaboration seems to be a strategic one.

We believe an unhealthy lifestyle and rising awareness and expenditure in healthcare will continue to drive growth in the 3D Dental scanner market. However, this market is dominated by well-established players like DENTSPLY SIRONA Inc. (NASDAQ:XRAY) .

Align Technology has been gaining investor confidence on consistently positive results. Over the past three months, the company’s share price has outperformed the broader industry. The stock has gained 51.1%, compared to the broader industry’s 4.9%. The company has also outperformed the 6.4% gain of the S&P 500 market over the same time frame.

Zacks Rank & Other Key Picks

Align Technology currently sports a Zacks Rank #1 (Strong Buy).

Another top-ranked medical stock is PetMed Express, Inc. (NASDAQ:PETS) , with a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

PetMed has a long-term expected earnings growth rate of 10%. The stock has rallied roughly 76.6% over a year.

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