|
 Shares of Align, which manufactured clear aligners for
SmileDirectClub, were down 3.9% at $286.47.
SmileDirectClub, which sold its aligners online after virtual
consultations using 3D imaging technology, said it was no longer
obligated to stick to the direct-to-consumer channel as agreed with
Align, which also makes clear aligners called Invisalign.
In 2016, Align signed a supply agreement to manufacture for
SmileDirectClub. As part of the transaction, Align had acquired a
17% stake in SmileDirectClub for $46.7 million, which it no longer
holds.
SmileDirectClub said starting this year it would provide its clear
aligners to dentists and orthodontists, an in-office option.
"We have seen increasing demand from the dentists and orthodontists
in our network who wish to provide SmileDirectClub clear aligners to
their in-office patients," Co-Founder Alex Fenkell said.
[to top of second column] |
The addition of a new distribution channel should benefit the
company's volumes, Evercore ISI analyst Elizabeth Anderson said.
"However, many questions remain including dentists'/orthodontists'
willingness to take up a product that they have heretofore seen as a
competitor."
SmileDirectClub said it will support the new distribution channel
through its existing clear aligner manufacturing operation in
Antioch, Tennessee.
The Nashville, Tennessee-based company's IPO was priced at $23 per
share on Sept. 11, above the expected range. However,
SmileDirectClub ended 2019 nearly 62% lower.
(Reporting by Manojna Maddipatla in Bengaluru; Editing by Shinjini
Ganguli)
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