Align Technology to add directors, launch review after deal with Elliott

July 29 (Reuters) - Align Technology ‌will add three ​new ​independent directors to its board and launch a review of its operations following talks with activist investor Elliott Investment Management, ‌the company said on Wednesday.

Shares of the medical device maker ⁠were down 4.5% in extended trading.

The three new board members, who have not yet ‌been named, will be chosen ‌for their expertise in healthcare technology, medical devices, global operations, and scaling high-growth businesses.

Elliott, one of Wall Street's most prominent activist investors, has ​increasingly turned its attention to healthcare companies over the past year, often pushing for board representation and strategic reviews to boost performance.

Elliott's ⁠recent targets in the sector have included Dexcom, Medtronic and Charles River Laboratories.

Align has hired a ​leading global consulting firm to conduct a comprehensive review of its operations and business model. The company said the ​review will focus on improving revenue growth ‌and boosting profit margins.

The changes follow discussions with Elliott, which has emerged as one of Align's largest shareholders.

Align manufactures ⁠dental retainers, scanners and software for dental laboratories and practitioners, and is widely regarded as a leader in the dental technology market alongside peers such as ⁠Envista, Dentsply Sirona and Henry Schein.

Align rose to prominence as the maker of Invisalign, ​the clear dental aligner system that disrupted traditional braces and helped transform orthodontics through digital scanning and treatment planning.

Marc Steinberg, a partner at Elliott, in a statement called ‌Align a market leader with significant growth potential. "We believe the board enhancements and other actions...are important steps toward ‌delivering on this opportunity," he said.

The company said it raised its share ⁠buyback target for the year to ‌between $400 million and $500 million, ​up from $200 million, citing confidence in its long-term value.

(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Sahal Muhammed and ‌Shailesh Kuber)

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