In 1Q17, Align Technology (ALGN) witnessed an 11.4% sequential rise in the volume of Invisalign cases used by doctors in international markets—especially from EMEA (Europe, the Middle East, and Africa) and Asia-Pacific. The volume growth for these cases in international markets in 1Q17 was even higher at 43% on a YoY (year-over-year) basis.
On February 28, 2017, Align Technology acquired its distributor in Brazil, the second-largest market for cosmetic interventions across the world. This acquisition has added a small team of employees from Sau Paulo to Align Technology’s workforce.
The company plans to leverage this deal to establish its dominance in the Brazilian market. With 1.4 million new orthodontic cases reported annually and 20% of the world’s dentists, Brazil represents a significant long-term growth opportunity for Align Technology.
Notably, the Vanguard Small-Cap Growth ETF (VBK) has about 0.73% of its total portfolio holdings in Align Technology.
In 1Q17, Align Technology reported a 38% YoY rise in the volume of Invisalign cases sold in EMEA. This performance has been mainly driven by increasing traction resulting from the company’s TFM (touchpoint frequency multilayer) model in the orthodontics markets across EMEA, with major progress witnessed in the key markets of Spain, Germany, and the UK.
In 1Q17, Align Technology also launched Invisalign Teen with mandibular advancement features in certain EMEA markets and Invisalign Go in Germany, France, and the UK.
On February 21, 2017, the company also announced the acquisition of its EMEA distributor. This led the company to open its first office in the Middle East on February 26, 2017, which has given Align Technology access to markets such as Monaco, Israel, Russia, the Baltics, Turkey, Cyprus, and Africa—among other countries and nearby regions.
Now let’s discuss Align Technology’s growth strategy in more detail.