Align Technology Inc. ALGN again made headlines with the announcement of a non-exclusive agreement with digital prosthetic solutions maker, Zfx GmbH on iTero Element intraoral scanners.

Zfx develops dental equipment, laboratories, and milling centers. Its products include intraoral scanners, milling machines, sintering furnaces, dental shade measuring instruments, CAD/CAM systems and related laboratory solutions for dental milling providers.

Align is optimistic about its partnership with Zfx. According to the company, this will help it expand restorative and laboratory marketplace for iTero Element intraoral scanners through Zfx’s dental network in major European, Asian and African countries.

Zfx will work as a sales agent for iTero scanners among its network of laboratories, milling centers, and dental professionals. In all the Zfx-supported regions, iTero scanners will be used through an open architecture approach.

Last week, the company revealed that with its iTero scanner, more than one million scans have been submitted in less than two years.

In this regard we note that, iTero scanner is used for restorative and orthodontic digital procedures as well as Invisalign digital impression submission. In 2013, the company received 501(k) clearance from the FDA to market iTero software for expanded indications. Scanners and CAD/CAM Services are primarily sold through the company’s direct sales force in North America, Europe and certain Asia Pacific countries like Taiwan, Singapore, Korea, Australia, New Zealand, and through distribution partners in Thailand and Scandinavia.

Scanners represent 11% of Align’s total worldwide revenues at present. The company is particularly hopeful about Intraoral scanning which, according to it, is an emerging technology with untapped potential. By enabling the dental practitioner to create a 3D image of the patient's teeth (digital scan) using a handheld intraoral scanner inside the mouth, it is going to change the future of dentistry. This latest partnership reflects the company’s strategy of expanding its scanner business worldwide.

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Notably, over the past one month, Align outperformed the Zacks categorized Medical - Dental Supplies industry with respect to share price movement. The stock increased 10.82%, as against 0.05% decline of the broader industry. The company’s impressive fourth-quarter 2016 results, strong volumes performance and cash position contributed to this uptrend.

Zacks Rank & Key Picks

Align currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the medical product sector include Inogen, Inc. INGN, Bovie Medical Corporation BVX and ResMed, Inc. RMD. While Inogen sports a Zacks Rank #1 (Strong Buy), Bovie Medical and ResMed carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Inogen gained 85.1% in the last one year compared with the S&P 500’s gain of 15.2%. The company has a stellar four-quarter positive average earnings surprise of over 49.08%.

Bovie Medical surged 55.9% in the last one year compared with the S&P 500. It has a four-quarter positive average earnings surprise of 28.7%.

ResMed gained over 27.4% in the past one year, better than the S&P 500 mark. It also has a trailing positive average earnings surprise of 0.31%.

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