Invisalign: Patents, Patients, Profits

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Canalyst. Canalyst is the leading destination for public company data and analysis. If you enjoy our exploration of what makes a company tick on Business Breakdowns, Canalyst should be the foundation for your quantitative analysis. For more information and access to the Canalyst model on Invisalign, go to canalyst.com/breakdowns.

[00:02:43] - [First question] - Overview of Align Technologies and their scale

[00:03:31] - What Invisalign is and the problem it solves

[00:04:43] - The footprint Invisalign has in the dental industry

[00:08:40] - Defining orthodontics and the size of the market

[00:09:49] - Why market penetration may double over the coming years

[00:14:42] - What the market was missing in the 90s and allowed Invisalign to arise

[00:16:20] - Unit economics across the value chain of orthodontics

[00:19:40] - Economics of an entire practice built on Invisalign

[00:20:34] - How they came to dominate and cement their market position

[00:22:44] - Vertical integration and other ways held a majority in the clear liner space

[00:25:02] - Branding, distribution and further means of competitive advantage

[00:27:05] - Why not move further up the value chain and buy orthodontic businesses

[00:28:40] - Invisalign’s P&L in gross margin and major item categories

[00:31:49] - What share of chair means and why it’s important

[00:32:56] - How many cases can currently be handled by clear alignment trays

[00:34:52] - Orthodontists will remain employed once aligners achieve widespread adoption 

[00:37:16] - Driving factors for Invisalign doubling over the next five to ten years

[00:39:03] - China’s push for training orthodontists and clear aligner adoption

[00:39:50] - Other reasons Invalisgn may double their market cap over the coming years

[00:40:26] - Competitors and disruptors that may hinder their growth

[00:42:01] - Joy dichotomy between patients and businesses

[00:43:40] - What happened in 2017, how it changed the marketplace, and the road ahead

[00:45:08] - Market share and penetration in today’s landscape

[00:46:23] - An analog that can be used to explain Invisalign writ large

[00:47:31] - What could revert Invisalign’s growth and market share

[00:50:22] - uLab and orthodontists making aligners themselves 

[00:51:53] - Other potential threats to Invisalign

[00:53:26] - Patenting your IP and gaining an advantage in healthcare

[00:55:28] - Lessons for builders and entrepreneurs from the Invisalign story

[00:56:39] - Lessons for investors watching Invisalign’s growth over the years

[00:58:07] - Where you can learn more; dentaltown Podcasts