AALGNAlign Technology, Inc.

Align Technology straightens teeth with clear aligners instead of metal braces.

Treatment begins with a scan of the mouth, after which a series of aligners is printed, each shifting the teeth by fractions of a millimetre. For an adult patient that matters more than price: braces are visible in a meeting and on camera, an aligner is not. It was adults who opened this market, which barely existed before.

The economics are twofold: each course of treatment is sold separately, while a scanner placed in a practice ties the dentist to the system for years. The weak point is discretion: straightening teeth is postponed in a downturn, and competitors and cheap copies press on price. Risks: consumer demand, demand in China and patent expiry. The company pays no dividend but buys back stock.