Align Technology (ALGN) Strong on Robust Customer Adoption
Align Technology, Inc. ALGN recently reached a new milestone by treating the one millionth patient in the Asia Pacific (APAC) region with its Invisalign system. The patient is based in Tokyo, Japan. Per the company’s estimates, the Invisalign system is the only clear aligner with one million patients in the APAC region and more than eight million patients worldwide.
The system, which belongs to Align Technology’s clear aligner line of products, has been seeing continued robust uptake.
The recent milestone backed by favorable customer feedback is in line with the company’s global expansion strategy.
Significance of the Milestone
Per the clinician who treated the one millionth patient in the APAC region, Align Technology’s Invisalign clear aligner was the preferred choice for the treatment. The reason for this choice being that the company has insight from various orthodontic cases to produce comfortable aligners with superior technology and clinical outcomes that meet the treatment goals for patients.
Notably, Align Technology will donate $10,000 to Operation Smile, its global charitable partner providing free surgery to children and adults born with cleft lip and cleft palate, to mark the achievement. Align Technology reached its 1 millionth Invisalign patient milestone in the Asia-Pacific region as of second-quarter fiscal 2020. This was taken into consideration while reporting financials on Jul 22, 2020.
Per a report by Verified Market Research, the global clear aligners market was valued at $1.89 billion in 2019 and is expected to reach $8.81 billion by 2027 at a CAGR of approximately 21.1%. Factors like growing awareness among people about dental care, rising customer spending and technological advancements are likely to drive the market.
Of late, Align Technology has been witnessing a slew of developments.
The company, in August, signed an agreement with the National Football League (“NFL”) to make the Invisalign brand the Official Clear Aligner Sponsor of the NFL. In the same month, Align Technology inked a multi-year partnership deal with the New Orleans Saints, making the Invisalign brand the “Official Smile” partner of the Saints.
During the company’s second-quarter earnings call in July, it confirmed that its APAC region has recorded growth unlike its other geographies. Further, the company noted that the Invisalign First has maintained its momentum among young patients and reflected greater resiliency as parents continue to prioritize orthodontic treatment for their kids. Despite a lower utilization rate for North America’s orthodontists and general practitioner dentists in the second quarter, the rate improved in June. The primary reason behind this being the performance of more Invisalign treatments, with teen shipments recovering faster in North America in late May and through June.
Further, in July, Align Technology globally launched the Align Digital and Practice Transformation (ADAPT) service for Invisalign and iTero doctors.
In May, the company expanded its digital platform with cloud-based ClinCheck Pro 6.0 and ClinCheck “In-Face” Visualization for Invisalign treatment. Further, Align Technology announced the availability of virtual solutions, Invisalign Virtual Appointment and Invisalign Virtual Care, to help doctors to connect with existing Invisalign patients to ensure continuity of care.
Shares of the company have gained 70.7% in the past year against the industry’s 2% fall and the S&P 500’s 20.3% rise.
Zacks Rank & Key Picks
Currently, Align Technology carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are QIAGEN N.V. QGEN, Thermo Fisher Scientific Inc. TMO and Hologic, Inc. HOLX.
QIAGEN’s long-term earnings growth rate is estimated at 22.3%. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher’s long-term earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).
Hologic’s long-term earnings growth rate is estimated at 15.5%. The company presently sports a Zacks Rank #1.
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