Align Technology Pilots U.S. Invisalign® Treatment Promotional Program on Costco.com

Rhea-AI Summary

Align Technology (NASDAQ: ALGN) has launched a pilot promotional program for Invisalign treatment on Costco.com in the U.S. Costco members can purchase an Invisalign treatment e-card and Essentials Bundle+ for $99.99, receiving a $400 discount off Invisalign treatment with participating providers. The bundle includes an aligner case, cleaning products, and accessories valued at $105.00.

This initiative aims to connect Costco members with Invisalign-trained dental practices, aligning with Align's priority to increase access to their innovative orthodontic solutions. Invisalign has treated over 18 million patients worldwide, including more than 5 million teenagers, offering a comfortable and effective alternative to traditional braces. Studies suggest Invisalign treatment is completed 5 months faster on average than fixed appliances.

Positive

• Launch of promotional program on Costco.com potentially expanding customer base
• Offering $400 discount on Invisalign treatment to Costco members
• Over 18 million patients treated worldwide, including 5 million teenagers
• Studies show Invisalign treatment completed 5 months faster on average than traditional braces

Negative

• Discounting strategy may impact profit margins
• to U.S. market and Costco members only

Insights

Marketing Strategist

This partnership with Costco represents a strategic move for Align Technology to expand its customer base and increase brand visibility. By offering a $400 discount through Costco's platform, Align is tapping into a vast pool of potential customers who may not have considered Invisalign treatment before. The $99.99 entry point is cleverly designed to lower the barrier to entry while still ensuring commitment from interested consumers.

The bundling of the e-card with the Invisalign Essentials Bundle+ adds perceived value and helps familiarize customers with the product before treatment begins. This approach could lead to higher conversion rates and potentially increased customer satisfaction. However, it's important to monitor how this program affects Align's profit margins and relationships with existing healthcare providers who may see this as competition.

Financial Analyst

While the immediate financial impact may be , this pilot program has the potential to significantly boost Align's revenue in the long term. By partnering with Costco, a retailer known for its loyal customer base, Align could see a substantial increase in new patient acquisitions. The $400 discount is a compelling offer that could drive volume, potentially offsetting the reduced per-patient revenue.

Investors should watch for metrics on customer acquisition costs and conversion rates from this program. If successful, this model could be expanded to other retailers, creating new growth channels. However, it's important to consider potential risks, such as cannibalization of full-price treatments and the impact on Align's brand positioning in the medical device market.

Dental Industry Expert

This initiative marks a significant shift in how dental treatments are marketed and sold. By bringing Invisalign into the retail space, Align is blurring the lines between consumer products and medical treatments. This could potentially increase awareness and acceptance of orthodontic treatments among a broader audience.

However, it raises questions about the role of dental professionals in the treatment process. While the program still requires consultation with an Invisalign provider, the initial purchase decision is moved away from the dental office. This could impact the doctor-patient relationship and potentially affect treatment outcomes. It will be important to monitor how this program balances convenience with maintaining high standards of care and professional oversight.

Costco members in the in the U.S. can purchase an Invisalign treatment e-card and Invisalign™ Essentials Bundle+ on Costco.com for $99.99 to receive a $400 discount off Invisalign treatment with participating U.S. Invisalign providers

TEMPE, Ariz.--(BUSINESS WIRE)-- Align Technology, Inc. (“Align”) (Nasdaq: ALGN), a leading global medical device company that designs, manufactures, and sells the Invisalign® System of clear aligners, iTero™ intraoral scanners, and exocad™ CAD/CAM software for restorative dentistry, today announced it is piloting a new U.S. Invisalign treatment promotional program for Costco members on Costco.com.

Costco members in the in the U.S. can purchase an Invisalign treatment e-card and Invisalign™ Essentials Bundle+ on Costco.com for $99.99 to receive a $400 discount off Invisalign treatment with participating U.S. Invisalign providers. (Photo: Business Wire)

An Invisalign treatment e-card and Invisalign™ Essentials Bundle+ is now available for Costco members to purchase on Costco.com for $99.99 to receive a $400 discount off Invisalign treatment with participating Invisalign providers. Costco members that purchase the e-card will receive a kit that includes the Invisalign treatment e-card with a redemption code and an Invisalign Essentials Bundle+ valued at $105.00 that includes an Invisalign Aligner Case, new Invisalign Cleaning Crystals+, Cleaning Foam, Cleaning Spray, Invisalign Aligner Seaters, and an Invisalign travel pouch.

“We are excited to offer this pilot program and connect Costco members and their families with Invisalign-trained dental and orthodontic practices,” said John Morici, Align Technology executive vice president and chief financial officer. “The Invisalign treatment e-card program represents a key priority at Align, to give patients of all ages access to better smiles through Align’s innovations and doctor-directed Invisalign treatment.”

The Invisalign® System is prescribed to patients through Invisalign-trained orthodontists or general practitioner dentists. Over 18 million⁽¹⁾ patients worldwide, including more than 5 million⁽¹⁾ teenagers, have been treated with the Invisalign System, the most advanced clear aligner system in the world.⁽²⁾ Invisalign clear aligners are more comfortable⁽³⁾ than braces and Invisalign treatment is as effective⁽⁴⁾ as braces⁽⁵⁾ for a wide range of clinical situations to address simple to complex cases and post-treatment retention. Multiple studies have found that Invisalign treatment completed 5 months faster, on average, than treatment with fixed appliances.⁽⁶⁾

For more information or to purchase an Invisalign treatment e-card, please visit https://www.costco.com/invisalign-400-e-card-with-essentials-bundle.product.4000292600.html. Upon purchase, Costco members in the U.S. will be directed to register their e-card through my.Invisalign.com/Costco and access a specialized site to find a participating U.S. Invisalign provider.

⁽¹⁾ Data on file at Align Technology, as of June 30, 2024

⁽²⁾ Data on file at Align Technology, as of September 23, 2020

⁽³⁾ *Study sponsored by Align Technology and based on adult Class I, nonextraction, mild to moderate crowding cases with SmartTrack material.

*David W. White, Katie C. Julien, Helder Jacob, Phillip M. Campbell and Peter H. Buschang, Discomfort associated with Invisalign and traditional brackets: A randomized, prospective trial. The Angle Orthodontist Nov 2017, Vol. 87, No. 6 pp. 801-808

⁽⁴⁾ Comparable outcomes for majority of treatment types

⁽⁵⁾ Based on a blind review of the outcomes of 60 adult and teen cases (30 treated with Invisalign aligners and 30 with braces) with similar complexities by a panel of 3 orthodontic professors. Data on file at Align Technology as of July 12, 2017.

⁽⁶⁾ Gu, J et al. Evaluation of Invisalign treatment effectiveness and efficiency compared with conventional fixed appliances using the Peer Assessment Rating index. Am J Orthod Dentofacial Orthop February 2017;151:259-66, and Buschang, P et al. Comparative time efficiency of aligner therapy and conventional edgewise braces. Angle Orthodontist, Vol 84, No 3, 2014

About Align Technology, Inc.

Align Technology designs and manufactures the Invisalign® system, the most advanced clear aligner system in the world, iTero™ intraoral scanners and services, and exocad™ CAD/CAM software. These technology building blocks enable enhanced digital orthodontic and restorative workflows to improve patient outcomes and practice efficiencies for over 266 thousand doctor customers and is key to accessing Align’s 600 million consumer market opportunity worldwide. Over the past 27 years, Align has helped doctors treat over 18.2 million patients with the Invisalign system and is driving the evolution in digital dentistry through the Align™ Digital Platform, our integrated suite of unique, proprietary technologies and services delivered as a seamless, end-to-end solution for patients and consumers, orthodontists and GP dentists, and lab/partners. Visit www.aligntech.com for more information.

For additional information about the Invisalign system or to find an Invisalign doctor in your area, please visit www.invisalign.com. For additional information about the iTero digital scanning system, please visit www.itero.com. For additional information about exocad dental CAD/CAM offerings and a list of exocad reseller partners, please visit www.exocad.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240822275001/en/

Madelyn Valente

(909) 833-5839

mvalente@aligntech.com

Zeno Group

Sarah Johnson

(828) 551-4201

sarah.johnson@zenogroup.com

Source: Align Technology, Inc.

FAQ

What is the new Invisalign promotion offered by Align Technology (ALGN) on Costco.com?

Align Technology is offering Costco members in the U.S. an Invisalign treatment e-card and Essentials Bundle+ for $99.99, which provides a $400 discount off Invisalign treatment with participating providers.

How many patients have been treated with Invisalign according to Align Technology (ALGN)?

According to Align Technology, over 18 million patients worldwide have been treated with the Invisalign System, including more than 5 million teenagers.

What is included in the Invisalign Essentials Bundle+ offered in the Costco promotion by Align Technology (ALGN)?

The Invisalign Essentials Bundle+ includes an Invisalign Aligner Case, Invisalign Cleaning Crystals+, Cleaning Foam, Cleaning Spray, Invisalign Aligner Seaters, and an Invisalign travel pouch, valued at $105.00.

How does Invisalign treatment time compare to traditional braces according to Align Technology (ALGN)?

Multiple studies cited by Align Technology have found that Invisalign treatment is completed 5 months faster, on average, than treatment with fixed appliances.