Align Technology, Inc’s (ALGN - Free Report) strategy of international expansion gets a solid impetus with the company achieving a new landmark in Invisalign adoption. The company announced that it has completed the shipment of one million cases in the Europe, Middle East and Africa (EMEA) region.
Per Align, this is a significant milestone for the company reflecting accelerated adoption of Invisalign clear aligner therapy.
Align noted that the one millionth Invisalign patient in EMEA is 24-year old Julia Leibold from Freiburg, Germany. Julia is being treated with the Invisalign Comprehensive Package, changing her aligners on a weekly basis.
Following this new breakthrough, Align will launch a pro bono campaign in July when it will work with doctors across the EMEA belt to offer Invisalign treatment to multiple patients with disabilities.
Align’s Intenrational Profile at a Glance
Align has undertaken several strategies to improve adoption of Invisalign Technology globally including product/technology development, extending clinical efficacy and extension of the Invisalign technology brand.
In recent times, the company’s international Invisalign volumes trend has consistently remained strong with 43.4% growth registered during the first quarter of 2018. This reflected a continued strong performance in both EMEA and APAC regions.
In EMEA, first-quarter volumes were up 36.6% on solid adoption of Invisalign Technology in the markets of Iberia and France as well as owing to rapid growth in smaller markets like Eastern Europe and Central Europe along with Benelux. In the Asia-Pacific zone, the company witnessed 56.1% surge in first-quarter volume, led by China, Japan and Australia.
While China stood close as the second largest market after the United States for Align, Iberia followed as the third largest destination. The international teen case soared 60% year over year in the same quarter. Notably, it is the sixth straight quarter when Invisalign teenage patient base grew faster than the adult patient population.
Not only that, the company of late accomplished a new feat with respect to its Invisalign Teen treatment options. It introduced a clear Aligner solution for teen Class II correction — the Invisalign Technology Teen with mandibular advancement — in certain markets of Canada, EMEA and APAC in 2017. The FDA approval for the same is expected in the second half of 2018.
These developments are indicative of the growing popularity of Align’s dental products in the foreign markets. Over the long term, we expect G6, G7 and similar innovations to act as major catalysts for Align’s growth in new as well as the existing markets.
Share Price Performance
Shares of Align have outperformed its industry over the past three months. The stock has surged 44.2% compared with the industry's 9.7% rise.
Zacks Rank & Other Key Picks
Align currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader medical sector are Genomic Health (GHDX - Free Report) , Abiomed (ABMD - Free Report) and Stryker Corp. (SYK - Free Report) .
Genomic Health has an expected earnings growth rate of 187.5% for the second quarter. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Abiomed has a projected long-term earnings growth rate of 27% and a Zacks Rank of 1.
Stryker has a projected long-term earnings growth rate of 9.7% and a Zacks Rank of 2.
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