In a continuous attempt to penetrate the huge untapped malocclusion market, Align Technologies (ALGN - Analyst Report) recently came up with the strategy to expand through educational offerings. The company launched an interactive website that provides professional education resources for Invisalign providers.
As a part of the company’s password-protected portal –Invisalign Doctor Site, this new educational offering will help the company identify the doctors individually and provide educational content and suggestions based on the geographic location of the doctors, the relevant Invisalign product and treatment option meeting their needs.
Align has tremendous growth opportunities in the malocclusion market. It is estimated that malocclusion affects roughly a billion individuals worldwide. Out of this, approximately 6.8 million people annually elect treatment by orthodontists worldwide. Further, 2.6 million people have mild-to-moderate malocclusion and are eligible for Invisalign treatment.
Owing to compromised aesthetics, discomfort and other drawbacks associated with traditional orthodontic treatments, a relatively small number of people with malocclusion seek treatment. As a result, the market is severely under penetrated.
Realizing the fact that it can increase market share by tapping the under-penetrated market, Align has undertaken several strategies to improve the adoption of Invisalign that includes product/technology development, extending clinical effectiveness, extension of the Invisalign brand and driving international growth.
The company is quite optimistic about the acceptance of Invisalign i7 in UK across GP and Ortho channels. Moreover, Invisalign Teen utilization trend in France is encouraging. China and Japan, Align’s latest direct country markets, are also exhibiting strong growth.In China, the launch of Invisalign during the second quarter of 2011 was followed by the introduction of Invisalign 4 and Invisalign Teen in that region.
Align believes that the new features and functionality delivered with Invisalign G3 and G4 are even more effective outside North America, especially in Asia, due to the higher complexity of cases among the Asian population. Over the long term, we expect G4 and similar other innovations to act as major catalysts to maintain Align’s growth momentum in new as well as existing markets.
The stock currently carries a Zacks Rank #3 (Hold). Other medical device stocks worth a look are Medical Action Industries Inc. , Given Imaging Ltd. and Acadia Health Company Inc. (ACHC - Analyst Report). All these stocks carry a Zacks Rank #1 (Strong Buy).