What’s Driving Invisalign Demand for Align in North America?
In 3Q17, Align Technology (ALGN) reported the use of Invisalign clear aligners by ~698,000 teens, which represents YoY (year-over-year) growth of ~46.5% and sequential growth of ~26.5%. The majority of teen demand in North America, which arises from the orthodontic channel, witnessed YoY growth of ~43.6% and sequential growth of ~22.9% in 3Q17.
This performance highlighted Align’s success in its sales initiatives as well as its targeted promotional campaigns designed for teens and moms. In 3Q17, Align witnessed 65.7% YoY growth and 36.7% sequential growth in teen cases in international markets, specifically driven by increased uptake in China.
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Invisalign cases by teens have risen rapidly since 1Q16. Rapid adoption by the teen segment is evolving as a major differentiating factor for Align, compared with other dental equipment providers like Danaher (DHR), Dentsply Sirona (XRAY), and 3M Company (MMM).
Notably, Align Technology accounts for 0.06% of the iShares Russell 1000 Growth ETF’s (IWF) total portfolio holdings.
Invisalign treatment with mandibular advancement
The launch of Invisalign treatment with mandibular advancement is expected to target a significant share of the teen segment requiring class-II corrections. This product could play a major role in increasing the adoption of Invisalign by teens, as 30%–45% of these patients require class-II corrections. But the product is awaiting approval from the FDA (US Food and Drug Administration).