INSUBCONTINENT EXCLUSIVE:
SmileDirectClub rang the opening bell earlier today, marking its first day of trading as a public company
share.SmileDirectClub kicked off its IPO hoping to raise up to $1.3 billion at an offering price of $23 per share, with an expected market
cap of around $10 billion
We are just getting started but our commitment to our mission, our 5,500+ team members, our customers and now our shareholders is stronger
$3.2 billion valuation following a $380 million funding round last October
Investors from Clayton, Dubilier - Rice led the round, which featured participation from Kleiner Perkins and Spark Capital
uptick from just $147 million the year prior.The company ships invisible aligners directly to customers, and licensed dental professionals
(either orthodontists or general dentists) remotely monitor the progress of the patient
Before shipping the aligners, patients either take their dental impressions at home and send them to SmileDirectClub or visit one of the
with the length of treatments ranging from four to 14 months
Upfront, SmileDirectClub costs $1,895, with the average treatment lasting six months.Though, members of the American Association of
against SmileDirectClub in 36 states, alleging violations of statutes and regulations governing the practice of dentistry
Those complaints were filed with the regulatory boards that oversee dentistry practices and with the attorneys general of each
state.SmileDirectClub explicitly calls out those issues in its S-1 as potential risk factors
percentage of their patients
National and state dental associations have issued statements discouraging use of orthodontics using a teledentistry platform
Increased market acceptance of our remote clear aligner treatment may depend, in part, upon the recommendations of dental and orthodontic
professionals and associations, as well as other factors including effectiveness, safety, ease of use, reliability, aesthetics, and price
compared to competing products.Furthermore, our ability to conduct business in each state is dependent, in part, upon that particular
changing political, regulatory, and other influences
There is a risk that state authorities may find that our contractual relationships with our doctors violate laws and regulations prohibiting
the corporate practice of dentistry, which generally bar the practice of dentistry by entities
Two state dental boards have established new rules or interpreted existing rules in a manner that purports to limit or restrict our ability
to conduct our business as currently conducted.Additionally, as the S-1 notes, a national dental association recently filed a petition with
