Align Technology, Inc. (NASDAQ:ALGN) has officially taken its manufacturing operations in China after launching its new Invisalign treatment planning facility in Chengdu. This is one of the biggest milestones for the clear aligner maker, which seems to be tapping into the burgeoning dental market opportunities. The company has been putting its eye on expansion in the high-potential Asia Pacific.
A strategic decision by Align
Align’s treatment planning services have been at San Jose and Costa Rica until the company decided to transfer them to China. The decision is strategic given that China serves international markets. Asia Pacific is also growing fast and this is likely to work well for Align.
According to Align’s VP & and managing director of its Asia Pacific wing, Julie Tay, the company’s aim is to offer doctors with the products and services they need. In return, they will be able to deliver great treatment outcomes to the region and to Invisalign patients. The facility is also expected to be used for training and education for doctors.
Align’s international Invisalign volumes have been significant
These are all indicative signs of Align’s growing popularity and particularly in dental products within a global market, which is also expanding very fast. “This growth reflects the huge market opportunity for orthodontic treatment as well as the clinical confidence of Invisalign providers’ in using Invisalign clear aligners to treat adults and teenagers,” says Align’s president & CEO Joe Hogan.
In the first-quarter 2017, the company reported a significant rise in volumes of 41.3%. In the Asia Pacific, the volumes for the same quarter were up 45.2% year over year with China being in the lead. Apparently, Align has surpassed the Zacks categorized Medical/Dental-Supplies industry and it is optimistic of obtaining more consistent growth from the densely populated emerging geographies.
Furthermore, it has been investing in billions of dollars in research and development, which has resulted in the creation of the most advanced clear aligner system. In the meantime, Align’s stock was trading at $148.83 a fall of $0.87 or 0.58%.
