{ "docId": "019dd923-622c-750b-8b9a-2a2468219173", "docSlug": "ce565b841c40", "documentTitle": "Nevro Corp. (NVRO)", "authorId": "58_Scorpion_Capital", "authorName": "Kir Kahlon", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2021-01-07 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 111, "pageCount": 239, "prevPage": 110, "nextPage": 112, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 0, "notes": "The slide uses direct quotes from KOLs to frame the company as unethical and manipulative.", "elementsJson": [ "headline_text", "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-2a2468219173/111", "deckHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173#slide-111", "components": [ { "bbox": null, "kind": "callout", "text": "Nevro's response to its explants crisis appears to be marked by denial, cover-up, retaliation, and patient/doc manipulation", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-3f3d-76db-b340-a817d176361b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.88, "x": 0.06, "y": 0.14 }, "kind": "paragraph", "text": "Nevro may produce doctors, perhaps via sell-side reports, who attest that they haven't seen abnormal explant rates. KOL's advised us to be skeptical, dismissing them as inexperienced, willfully ignorant, or being paid by Nevro. One KOL stated that these Nevro loyalists were on the fringe, as reputable implanters and thought leaders wouldn't work with the company. The KOL implied Nevro was similar to a \"Scientology cult,\" a characterization we heard several times during our research. A second KOL indicated that Nevro's device was tailor-made for \"unethical, corrupt doctors\" who \"couldn't care less if there's a high explant rate.\"", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "34b46115-441e-4fb2-b038-3c948c4f8b49", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.88, "x": 0.06, "y": 0.65 }, "kind": "quote", "text": "\"If you put doctors into boxes, Money Mike couldn't care less if there's a high explant rate. It's just about the price you give him for the device. He could care less about whether it works or not. Yes, there are unethical, corrupt doctors. In that population, Nevro is the best thing since sliced bread.\" -KOL, former high volume Nevro implanter", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "77883a14-3a60-42e1-9c78-183d3bb02c37", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.88, "x": 0.06, "y": 0.38 }, "kind": "quote", "text": "\"When Nevro first started, if you look at the doctors in the forefront, true thought leaders, key opinion leaders, the white shoe reputable people - that's not who they got. They brought in a bunch of guys - I wouldn't say they were outcasts, but... it was like a Scientology thing. They did these retreats at some huge mansion, like crazy stuff, and I remember coming back and telling my rep, \"What the heck was that?\" There are a few guys like [name redacted, one of Nevro's highest volume implanters and key study authors] who got in with them right away and they pumped him up. He went from 0 to 90 mph because of Nevro. He was on every committee and pumped it up at NANS. Nevro is not science. It's a cult and I am blown away because every doctor I know that does a lot of implant volume doesn't use Nevro except for a small cult.\" -KOL, former high volume Nevro implanter", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7dbef950-7c24-4e59-9c19-516e3d69e6da", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"When Nevro first started, if you look at the doctors in the forefront, true thought leaders, key opinion leaders, the white shoe reputable people - that’s not who they got. They brought in a bunch of guys - I wouldn’t say they were outcasts, but... it was like a Scientology thing. They did these retreats at some huge mansion, like crazy stuff, and I remember coming back and telling my rep, \"What the heck was that?\" There are a few guys like [name redacted, one of Nevro’s highest volume implanters and key study authors] who got in with them right away and they pumped him up. He went from 0 to 90 mph because of Nevro. He was on every committee and pumped it up at NANS. Nevro is not science. It’s a cult and I am blown away because every doctor I know that does a lot of implant volume doesn’t use Nevro except for a small cult.\" — KOL, former high volume Nevro implanter; \"If you put doctors into boxes, Money Mike couldn’t care less if there’s a high explant rate. It’s just about the price you give him for the device. He could care less about whether it works or not. Yes, there are unethical, corrupt doctors. In that population, Nevro is the best thing since sliced bread.\" — KOL, former high volume Nevro implanter", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-3f3d-76db-b340-adad322861fb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.2, "x": 0.06, "y": 0.95 }, "kind": "source-note", "text": "Source: Consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2beaa2cb-592d-49c4-95e9-e706ed6c99ed", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.88, "x": 0.06, "y": 0.09 }, "kind": "title", "text": "8. Nevro's response to its explants crisis appears to be marked by denial, cover-up, retaliation, and patient/doc manipulation", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0f299164-ae0c-4701-b8b3-b59df26f1766", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.35, "x": 0.06, "y": 0.04 }, "kind": "title", "text": "Scorpion Capital | Nevro (NYSE: NVRO)", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e2f2bdec-f873-44bc-9b8d-985bdcecdde6", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "antagonist-introduction", "slug": null, "matchId": "c1d417c3-7c0a-4fb4-bc34-9aa44c06936a", "evidence": "The slide frames Nevro and its associated doctors as a 'cult' and 'unethical' to discredit them.", "confidence": 0.9 } ], "arcBeats": [ { "to": 150, "from": 51, "beatId": "903c076a-f368-4ca1-844c-277874c1afb2", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "The Victory", "beatSlug": "overcoming-monster-the-victory", "evidence": "The deck presents a conclusion that Nevro's problems are insurmountable", "position": 2, "confidence": 0.8, "parentBeatName": "Turn", "parentBeatSlug": "turn" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }