Align Technology (ALGN) Jefferies Global Healthcare Conference summary

Market environment and performance

• Global demand showed stability in Q1, with Asia, Eastern Europe, and Latin America performing well, while North America and Western Europe faced more challenges.

• Revenue guidance was raised to 6%-8% growth, reflecting confidence from strong Q1 results and new product launches.

• Teen segment expected to grow faster than adults, especially during the seasonal uptick in the second half of the year.

• ASPs are expected to be flat to slightly up, driven by price increases and product mix.

• Both clear aligner and systems/services segments contributed to the guidance raise.

Product innovation and launches

• Lumina, a new camera-based scanner, launched in Q1, offers faster, clearer scans and a smaller wand, targeting both upgrades and new sales.

• About one-third of the 100,000 installed scanners are ready for upgrade, with restorative features coming in Q4.

• Invisalign Palatal Expander (IPE) launched in North America and ANZ, with plans for Europe and Asia, targets preteens needing upper palate expansion.

• IPE is priced at $700 list, with ASP around $500, and is expected to drive both direct revenue and future aligner adoption.

• Early feedback on IPE is positive, with increasing doctor adoption and rapid visible results.

Regional and strategic updates

• China remains a key growth market, with stable operations and limited impact from volume-based procurement due to a focus on the private sector.

• Continued investment in manufacturing, treatment planning, and direct sales in China to capture under-penetrated opportunities.

• Heartland DSO partnership expanded to $150 million investment, supporting digital adoption and mutual growth.