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  "documentTitle": "Align Technology, Inc. (ALGN)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2020-04-09 00:00:00",
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  "notes": "The slide uses a combination of management quotes and market landscape tables to build a bearish thesis on Align's pricing power.",
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      "text": "As end-user prices compress, can Align really charge doctors the same price?",
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      "text": "To the extent that Align is able to penetrate the non-comprehensive market and/or expand its addressable patient base, Spruce Point believes that it will experience dramatic price compression.",
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      "text": "Consumer Price: $2,000",
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      "text": "To the extent that Align is able to penetrate the non-comprehensive market and/or expand its addressable patient base, Spruce Point believes that it will experience dramatic price compression.",
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      "kind": "paragraph",
      "text": "Management claims that, as clear aligners grow increasingly mainstream, individuals who wouldn't have otherwise been candidates... may begin to migrate to clear aligners. However, this market is also ripe for low-cost competitors...",
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      "text": "Yes. And over the last year or two, one thing we've worried about... is that 40-year-old parent goes into the office and the doctor says, 'Oh yes, I can do that, $6,000, write me a check and we're done,' versus $1,895 or whatever SmileDirect is.",
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      "text": "Yes. Many doctors are realizing that those patients or potential patients are coming in and price shopping. They have an idea that maybe it should cost them $2,000...",
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      "text": "We're really going to try to continue to grow our market. 75% of our market is comprehensive.... That really mostly addresses that 12 million TAM that we talked about, but 25% of our portfolio is non-comprehensive.",
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      "text": "\"We're really going to try to grow our market. 75% of our market is comprehensive.... That really mostly addresses that 12 million TAM that we talked about, but 25% of our portfolio is non-comprehensive. That's growing very fast, in part because it's going after these 300 million consumers.\" — John Morici, CFO, Align Technology. \"Yes. And over the last year or two, one thing we've worried about/thought about with your business is, SmileDirect does create demand.... They just want to do it online.... But one thing we've worried about is that 40-year-old parent goes into the office and the doctor says, 'Oh yes, I can do that, $6,000, write me a check and we're done,' versus $1,895 or whatever SmileDirect is. So are you seeing your doctors understand that they need to reprice, reset their pricing policies or how they charge patients?\" — Jeffrey Johnson, Analyst, Robert W. Baird. \"Yes. Many doctors are realizing that those patients or potential patients are coming in and price shopping. They have an idea that maybe it should cost them $2,000, you're right for if it's an easier movement, don't need a lot of aligners to be able to move their teeth in the right way, maybe they shouldn't be charging $5,000 or $6,000.\" — John Morici, CFO, Align Technology.",
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      "text": "A Crowded Non-Comprehensive Landscape: Doctor-Directed vs Direct-to-Consumer (DTC) providers.",
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      "text": "Historical Pricing: Invisalign/Comprehensive ($5,500) vs DTC/Non-Comprehensive ($2,000).",
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      "text": "Uncomplicated Cases A Prime Target For Low-Cost Competition",
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