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SmileDirectClub rang the opening bell earlier in the day, marking her first day of trading as a public company. The teeth recovery company is now trading on the NASDAQ under the symbol "DDC".
Already, the stock is trading down 11% to 20.36 dollars per share.
SmileDirectClub has launched its IPO in the hope of raising up to 1.3 billion USD at an offer price of 23 USD per share, with an expected market capitalization of around 10 billion USD. The company originally planned to set its price at between $ 19 and $ 22 per share.
The company plans to use the funds raised through the IPO for its international expansion and the development of new dental products. The SmileDirectClub asked to be made public in August because of concerns expressed by national dental associations.
Previously, SmileDirectClub had reached a valuation of $ 3.2 billion after a $ 380 million fundraising last October. Investors from Clayton, Dubilier & Rice led the operation, which included Kleiner Perkins and Spark Capital. This funding is in addition to the $ 46.7 million investment by Invisalign Align Technology in SmileDirectClub in 2016 and an additional investment of $ 12.8 million in 2017 to hold 19% of the company.
In 2018, SmileDirectClub's revenues were $ 432.2 million, a significant increase from $ 147 million the year before.
The company sends invisible aligners directly to clients and certified dental professionals (orthodontists or general dentists) remotely monitor the patient's progress. Before sending the aligners, patients take their dental impressions at home and send them to the SmileDirectClub or go to one of the company's "SmileShops" to be scanned in person.
SmileDirectClub indicates that it costs 60% less than other types of tooth smoothing treatments, with a treatment duration ranging from four to 14 months. Initially, SmileDirectClub costs $ 1,895 for an average treatment of six months.
Members of the American Association of Orthodontists have challenged SmileDirectClub, previously claiming that SmileDirectClub was breaking the law because its methods of allowing people to avoid face-to-face and X-ray visits are "illegal and create medical risks" . has also filed complaints against the SmileDirectClub in 36 states, alleging violations of laws and regulations governing the practice of dentistry. These complaints were filed with the regulatory bodies responsible for dental practices and with the attorneys general of each state.
SmileDirectClub explicitly calls these problems into its S-1 as potential risk factors. Here is a key nugget:
A number of dental and orthodontic professionals believe that clear aligners are only appropriate for a limited percentage of their patients. National and national dental associations have issued statements discouraging the use of orthodontics with the help of a tele-sedentary platform. The increased market acceptance of our remote clear alignment treatment may depend, in part, on the recommendations of professionals and dental and orthodontic associations, as well as other factors, including efficacy, safety, ease of use, reliability, aesthetics and price, compared to competing products. .
In addition, our ability to conduct business in each state depends in part on the state's treatment of remote health care and the regulation of the practice of dentistry by the dental board of that state, each of which is subject to different influences. political, regulatory and other changes. State authorities may find that our contractual relationships with our doctors violate laws and regulations prohibiting the practice of dentistry in business, which generally prohibit the practice of dentistry by entities. Two state dental councils have established new rules or interpreted existing rules to limit or limit our ability to carry out our current activities.
In addition, as noted in S-1, a national dental association recently filed a petition with the US Food and Drug Administration claiming that the manufacture of the SmileDirectClub violated the "prescription only" requirements. Although no regulation or law has been passed that could affect SmileDirectClub to date, this is a possible scenario that would have a major impact on the core of the business.
Development…
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