"This doctor-directed, at-home model follows the trend towards other convenient and more affordable at-home solutions for procedures including contact lenses, hearing aids, and diabetes care," said
Continued Hogan, "The goal of our agreement with SmileDirectClub is to help expand the market and opportunity for our Invisalign doctors, while supporting SmileDirectClub's efforts to provide consumers with access to more choices in treating simple cases from the convenience of their own home. When we look at the volume of Invisalign cases, 2% or less fit the SmileDirectClub protocols, which means we expect there to be very little cannibalization of the existing market. We look forward to working with SmileDirectClub to broaden the scope of clear aligner treatment options for consumers, while helping refer and connect new patients to Invisalign providers."
"We're looking forward to working with
The agreement with SmileDirectClub brings Align's manufacturing and production expertise to a new and growing segment of the adult treatment market, one that provides new treatment choices to consumers and new business opportunities to Invisalign providers.
Under the agreement, the companies will create a new Invisalign doctor referral program similar to the Invisalign Doc Locator, that will systematically refer the approximately 30 percent of SmileDirectClub's SMILECHECK case assessments that are too complex for their minor tooth movement product, to Invisalign providers in the patient's local area.
As part of the transaction, Align acquired a 17% stake in SmileDirectClub for
For additional information about the Invisalign system or to find an Invisalign provider in your area, please visit www.invisalign.com. For additional information about the iTero 3D digital scanning system, please visit www.itero.com.
SmileDirectClub is the first digital brand for your smile and the leader in remote invisible aligner treatment. By leveraging proprietary, cutting-edge technology they are helping customers get access to a smile they'll love by eliminating office visits, connecting customers with orthodontists and dentists across the country and cutting costs by up to 70 percent, because people shouldn't have to pay a small fortune for a better smile. Visit smiledirectclub.com for more information
This news release, contains forward-looking statements, including statements regarding Align's expectation that this transaction will be incremental to its topline growth and earnings in 2017. Forward-looking statements contained in this news release relating to expectations about future events or results are based upon information available to Align as of the date hereof. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. As a result, actual results may differ materially and adversely from those expressed in any forward-looking statement. Factors that might cause such a difference include, but are not limited to, economic, competitive and market conditions generally; market acceptance of the SmileDirectClub aligners; the amount of purchases by SmileDirectClub
under the supply agreement; andpossible adverse actions of existing customers. In addition, due to the the requirement to account for a portion of SmileDirectClub's operations in Align's financial statements, whether the transaction is incremental to Align's earnings will depend on several factors outside of Align's control, including SmileDirectClub's ability to control expenses while increasing revenues. These and other risks are detailed from time to time in Align's periodic reports filed with the
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