Shares of SmileDirectClub (SDC 2.29%) were jumping 9.5% as of 10:54 a.m. EST on Monday. The nice gain came after the company announced a partnership with MetLife (MET -1.82%). Under this partnership, MetLife will offer SmileDirectClub's remote orthodontic care with its dental plans.
Any arrangement that expands the reach for SmileDirectClub is great news for the healthcare stock. This latest deal will make SmileDirectClub's clear aligners available to more than 20 million individuals with MetLife dental insurance.
Making a product available to people doesn't necessarily mean that they'll choose the product. However, MetLife plan members will have several ways to access SmileDirectClub, which could boost adoption. MetLife members will be able to have a 3D oral scan performed at one of SmileDirectClub's retail SmileShops, visit a dentist or orthodontist in the SmileDirectClub Partner Network, or use an at-home impression kit (with a prescription).
The addition of MetLife as a partner is another positive step for SmileDirectClub. CEO David Katzman noted, "With this partnership, SmileDirectClub's innovative clear aligner treatment is now covered by almost all major insurance providers in the U.S."
The key thing to watch with SmileDirectClub now is how the company executes against its plans. Katzman stated in the company's Q3 conference call that SmileDirectClub is "managing the business to drive toward our long-term financial targets, which include 20% to 30% revenue growth per year with sustained profitability." If SmileDirectClub achieves those goals, its positive momentum should continue.