Investment Thesis
Align Technology, Inc. (ALGN), a global pioneer in clear aligners, remained subdued in early 2019 amid a series of softer revenue forecasts issued by the management. The expiry of key patents in 2017 had opened the floodgates of competition, exposing ALGN’s lack of focus on R&D over the years. The direct-to-consumer aligner makers with their low-cost business model have cut down the prices intensifying the industry rivalry.
The recent legislative changes and disapproval by industry experts question the viability of the DIY business model. Meanwhile, ALGN, well-capitalized with little leverage, is