SmileDirectClub CEO David Katzman stands alongside founders Jordan Katzman and Alex Fenkell as the company debuts its IPO at Nasdaq MarketSite in New York on September 12, 2019.
Lucas Jackson Reuters
SmileDirectClub stock rose 15% on Monday after announcing that it will begin selling its teeth straightening products to dentists and orthodontists.
The company's exclusive partnership with Align Technology expired in late 2019, freeing it to market its clear aligners directly.
"We have seen a growing demand for dentists and orthodontists in our network who wish to provide clear SmileDirectClub aligners to their in-office patients and, with our contract with Align Technology now expired, we are no longer required to remain in direct service for," said the SmileDirectClub co-founder Alex Fenkell in a press release.
SmileDirectClub shares were trading recently at 15% to $ 11.78. Despite the gain, inventory remains significantly below the 52-week high of $ 21.10. Meanwhile, Align shares have fallen by about 3%, claiming that the two companies will now be in direct competition.
The company will support this new distribution channel through its existing clear aligner manufacturing operation in Antioch, Tennessee. The company had recently announced that it will add a second manufacturing facility located in Kyle, Texas to meet growing demand for its products.