Align Technology Inc. ALGN has recently achieved a major milestone for its scanner business. The company revealed that more than one million scans have been submitted using the iTero Element scanner in less than two years. Notably, this scanner was introduced in 2015 at the International Dental Show conference in Cologne, Germany.
iTero scanner is used for restorative and orthodontic digital procedures as well as Invisalign digital impression submission. In 2013, the company received 501(k) clearance from the FDA to market iTero software for expanded indications. Scanners and CAD/CAM Services are primarily sold through the company’s direct sales force in North America, Europe and certain Asia Pacific countries like Taiwan, Singapore, Korea, Australia, New Zealand, and through distribution partners in Thailand and Scandinavia.
In this regard, we note that, Scanner represent 11% of Align’s total worldwide revenues at present. Align is particularly hopeful about Intraoral scanning which according to the company is an emerging technology with untapped potential. By enabling the dental practitioner to create a 3D image of the patient's teeth (digital scan) using a handheld intraoral scanner inside the mouth, this is going to change the future of dentistry.
According to the company, digital scanning is more efficient, accurate and comfortable when compared to the messy, discomforting and physical impressions. It also lowers the rate of restoration "remakes" substantially. Accordingly, patients would need to revisit less often and the appointment time for the restoration is shorter.
This latest landmark of reaching one million scans, no doubt indicates how rapidly the company is spreading its scanner business worldwide.
Share Price Movement
Notably, over the past one month, Align outperformed the Zacks categorized Medical - Dental Suppliesindustry with respect to share price movement. The company’s impressive fourth-quarter 2016 results, strong volumes performance and cash position all contributed to this uptrend. Currently, the stock is pegged at 9.8%, far above 0.76% of the broader industry. We believe, the latest news should add further momentum to this trend.
Zacks Rank & Key Picks
Align Technology currently has a Zacks Rank #3 (Hold).
Better-ranked stocks in the medical product sector are Inogen, Inc. INGN, Bovie Medical Corporation BVX and ResMed, Inc. RMD. While Inogen sports a Zacks Rank #1 (Strong Buy), Bovie Medical and ResMed carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen gained 85.9% in the last one year in comparison to the S&P 500’s gain of 15.8%. The company has a stellar four-quarter average earnings surprise of over 49.08%.
Bovie Medical surged 52.8% in the last one year in comparison to the S&P 500. It has a four-quarter average earnings surprise of 28.7%.
ResMed gained over 26.5% in the past one year, better than the S&P 500 mark. It also has a trailing average earnings surprise of 0.31%.
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