Market expansion trends
In addition to Latin America and EMEA (Europe, the Middle East, and Africa) markets, in 1Q17, Align Technology (ALGN) also witnessed a robust rise of around 45.2% in volumes of Invisalign sold in Asia-Pacific markets on a YoY (year-over-year) basis. This growth was mainly driven by increased demand in the key markets of Japan, China, Australia, and New Zealand.
In 1Q17, the company launched Invisalign Teen with mandibular advancement in the key APAC markets of Australia, South Asia, Hong Kong, and New Zealand. Approximately 800 doctors attended the peer-to-peer launch event conducted by Align Technology for Invisalign Teen in 1Q17.
Align Technology has transferred its Invisalign practices in South Korea to direct its coverage model. This switch from network partners is expected to boost the adoption of Invisalign in the Korean market in 2017.
Notably, the S&P Mid-Cap 400 Growth ETF (IJK) has about 1.3% of its total portfolio holdings in Align.
Align Technology has also been focused on launching new orthodontic products, especially targeting teen segment. The company launched the first clear aligner to treat Class II malocclusion cases in teen patients in Canada, APAC, and EMEA (Europe, the Middle East, and Asia) in 1Q17.
In 1Q17, 49,000 teenagers in North America started treatment with Invisalign, which represents a YoY growth of 31.6% and a sequential growth of 11.3%—higher than the three-year average growth rate witnessed on both accounts. In 1Q17, Invisalign case shipments for teen patients in international markets witnessed a robust rise, both YoY and sequentially. These international market patients accounted for 30% of the total teens starting therapy with Invisalign in 1Q17.