SmileDirectClub, Inc. ( SDC Quick Quote SDC - Free Report) recently announced SmileOS, an innovative new treatment planning software. SmileOS allows its affiliated network of state-licensed doctors to treat more patients, predict tooth movements with more accuracy and better visualize their patients’ treatment.
Per management, the proprietary, custom-built SmileOS treatment planning software outperforms the capabilities of the off-the-shelf solutions used by many of its competitors and helps the company provide a superior customer experience.
SmileOS will assist hundreds of the company’s affiliated dentists and orthodontists in treating a broader range of patients, ensuring that more people benefit from SmileDirectClub’s revolutionary telehealth platform for teeth straightening.
Enhanced Treatment with SmileOS
SmileOS is powered by artificial intelligence based on data from the more than 1.5 million clear aligner treatment plans, all of which are approved and prescribed by the SmileDirectClub’s network of affiliated dentists and orthodontists, and delivered through its pioneering telehealth platform for orthodontia. SmileDirectClub's doctors use a series of novel algorithms to optimize precise tooth movements in order to achieve a straighter smile.
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Advancements in teeth phasing with SmileOS increase the number of customers who can benefit from SmileDirectClub aligners by expanding the complexity of eligible cases without the usage of buttons or attachments. Further, SmileOS will increase the number of teenagers eligible to receive treatment with SmileDirectClub clear aligners.
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SmileDirectClub treatment plans are reviewed, finalized, approved and prescribed by a dentist or orthodontist licensed to practice in the customer's location, as has always been the case. SmileDirectClub Club Members receive a preview of their doctor-prescribed treatment plan to see how they will achieve their desired smile within a treatment period of four to six months on average. After completing treatment with annual complimentary aligner touchups, Club Members can maintain their smiles with SmileDirectClub’s Lifetime Smile Guarantee, given they purchase retainers every six months and wear them as directed.
Per a report published in Data Bridge Market Research, the dental software market is expected to see a CAGR of 8.23% during the forecast period of 2021 to 2028. Factors such as greater uptake of digital dental radiography systems, increasing prevalence of dental disorders, surge in the aging population, rapid technological advancements, increase in oral healthcare expenditure, growth in the number of dental practices, rapid increase in oral health insurance coverage and favorable government initiatives are expected to drive the market during the forecast period.
Given the substantial market prospects, the introduction of SmileDirectClub’s innovative new treatment planning software seems strategic.
In October 2021, SmileDirectClub introduced the innovative Large Tank and Compact Water Flossers. The two new water flossers are stated to be more efficient compared to string floss. These add to the company’s premium oral care line and are currently available at Shop.SmileDirectClub.com, Amazon, Walmart and Walmart.com.
In the same month, the company announced that the United States Patent & Trademark Office (USPTO) will grant a patent on its innovative SmileBus concept. The patent from USPTO is expected to strengthen the company’s intellectual property as one of the techniques for offering premium, affordable, and accessible dental care to more people via its telehealth platform.
In September 2021, the company revealed plans to launch its business in France during the start of the fourth quarter of 2021. The company is expected to debut its premium clear aligners, telehealth platform, and whitening system at its first France SmileShop in Paris, with more sites to follow. The company’s intent to foray into France will mark its entry into its seventh European country.
Share Price Performance
The stock has underperformed its
industry over the past year. It has declined 60.6% against the industry’s 17.6% growth. Zacks Rank and Key Picks
Currently, SmileDirectClub carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the broader medical space are
Chemed Corporation ( CHE Quick Quote CHE - Free Report) , Laboratory Corporation of America Holdings or LabCorp ( LH Quick Quote LH - Free Report) and West Pharmaceutical Services, Inc. ( WST Quick Quote WST - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chemed has a long-term earnings growth rate of 7.7%. The company surpassed earnings estimates in three of the trailing four quarters and missed in one, delivering a surprise of 5.6%, on average.
Chemed has outperformed its industry over the past year. CHE has gained 4.2% against a 37.1% industry decline.
LabCorp has a long-term earnings growth rate of 10.6%. The company surpassed earnings estimates in the trailing four quarters, delivering an average surprise of 25.7%.
LabCorp has outperformed the industry it belongs to in the past year. LH has gained 40.8% versus the industry’s 17.5% growth.
West Pharmaceutical has a long-term earnings growth rate of 27.6%. The company surpassed earnings estimates in the trailing four quarters, delivering an average surprise of 29.4%.
West Pharmaceutical has outperformed the industry it belongs to in the past year. WST has gained 54.1% versus the industry’s 17.6% growth.