SDC stock is up in pre-market trading on news that it’s current deal with Align Technology expired.

SmileDirectClub, the industry pioneer and first direct-to-consumer medtech platform for teeth straightening, today announced plans to offer its clear aligners through the wholesale channel, providing dentists and orthodontists an in-office option in 2020. With the December 31, 2019 expiration of its exclusive supply agreement with Align Technology, Inc., SmileDirectClub will expand access to its clear aligner therapy solutions and open its network to dentists and orthodontists in search of a premium and affordable teeth straightening solution for their patients.

“We have seen increasing demand from the dentists and orthodontists in our network who wish to provide SmileDirectClub clear aligners to their in-office patients, and with our agreement with Align Technology now expired, we are no longer obligated to stay in the direct-to-consumer channel,” said SmileDirectClub Co-Founder Alex Fenkell. “We’re excited to expand our offering and welcome new providers to add an important and needed offering to their suite of services.”

SmileDirectClub will support this new distribution channel through its existing clear aligner manufacturing operation in Antioch, Tenn., which is the largest 3D printing facility in the United States. The company recently announced that it will add a second manufacturing facility located in Kyle, Texas in 2020 to meet increased demand for its products.

“Clear aligner therapy technology advances now enable patients who otherwise would not have been candidates in the past to avoid the discomfort and time commitment of traditional metal braces,” said Dr Jeffrey Sulitzer, SmileDirectClub Chief Clinical Officer. “Of the more than 200,000 licensed dentists and orthodontists in the United States, only an estimated 30% offer clear aligner therapy in their offices. We are looking forward to opening our network to providers who wish to join us in our mission to broaden access to premium care at an affordable price.”

On January 13, 2020, Following the Superior Court of New Jersey’s decision on January 10, 2020 granting SmileDirectClub’s motion for summary judgment against the New Jersey Dental Association, SmileDirectClub, Inc. (Nasdaq: SDC) issues the following statement:

“We are pleased that the Superior Court of New Jersey granted our motion for summary judgment against the New Jersey Dental Association’s sham complaint against SmileDirectClub and concluded that its allegations about our business and the independence of the doctors who use our network are false,” said Susan Greenspon Rammelt, SmileDirectClub Chief Legal Officer, EVP of Business Affairs and Corporate Secretary. “This court decision verifies that SmileDirectClub’s model is in full compliance with the law, and that SmileDirectClub is not engaged in the corporate practice of dentistry.”

The New Jersey Dental Association’s January 2019 complaint alleged that SmileDirectClub illegally practiced dentistry in New Jersey through its control over the dentists that choose to utilize SmileDirectClub’s marketing and administrative support services and its teledentistry platform and that its marketing practices were in violation of New Jersey law. By granting SmileDirectClub’s motion for summary judgement, the court concluded that the allegations were wholly without merit.

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