{
  "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": 120,
  "pageCount": 239,
  "prevPage": 119,
  "nextPage": 121,
  "slideType": "villain_critique",
  "function": "name_villain",
  "density": "overcrowded",
  "nDataPoints": 4,
  "notes": "Uses testimonials to frame the company as a 'one-tick pony' with a shrinking user base.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "bullet_list",
    "quote_block",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9a-2a2468219173/120",
  "deckHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173#slide-120",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "It’s the high volume doctors souring on Nevro. It’s a big deal that other companies can give you paresthesia-free stimulation.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-3f3d-76db-b340-5c5a41499a00",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.9,
        "x": 0.05,
        "y": 0.56
      },
      "kind": "list",
      "text": "One of Nevro’s highest volume implanters stated his usage is down, that the honeymoon is over, and that doctors are skeptical the device works. A second user said the pool of Nevro die-hards “has shrunk” with “not much more growth to be captured” in Nevro’s base.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5b641569-913c-487f-845a-697195c18e1a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.9,
        "x": 0.05,
        "y": 0.31
      },
      "kind": "list",
      "text": "One of the most well-known KOL’s in the space stated that 10% of doctors drive 90% of industry volume, and that these high-volume implanters are the ones “souring on Nevro.” He stated that Nevro’s sole innovation – paresthesia-free stimulation – is now widely offered by competitors.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "81697307-820a-4a37-9915-a1fba7b38af6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.9,
        "x": 0.05,
        "y": 0.14
      },
      "kind": "paragraph",
      "text": "KOL’s and former Nevro executives outlined where the company finds itself now: after the hype from its pivotal study and 2015 launch wore off by 2018, sales growth went to zero. With the honeymoon period now over, Nevro’s “turnaround” finds itself stuck in a ditch: high volume implanters – who drive 90% of industry volume – have soured on the company; KOL’s now believe the initial data was dubious and that the technology doesn’t work; and even Nevro loyalists have migrated back to Medtronic/Abbott/Boston Scientific devices.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "056650c2-1e73-4af2-9eda-b960c0f647bb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.8,
        "x": 0.1,
        "y": 0.74
      },
      "kind": "quote",
      "text": "When we poll at conferences, initially doctors who were doing Nevro were all or nothing. They had a very dedicated following. That pool has shrunk. Now more us are finding that we like to spread it around. Of the 15 to 20 implanters in New York like me, all of us are doing some Nevro and there’s not much more growth to be captured among this circle.",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "81bd8a55-d5ec-47c3-8452-635c3950fad4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.8,
        "x": 0.1,
        "y": 0.41
      },
      "kind": "quote",
      "text": "There are 10 to 20 doctors like me in the country, maybe a little more, that implant stimulators at these high volumes. People like me are the majority of the implants. It’s a 90/10 rule. By and large, it’s the high volume doctors souring on Nevro. It’s a big deal that other companies can give you paresthesia-free stimulation. And Medtronic’s Intelis came on like gangbusters. It’re really tiny. I was really excited by it.",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9ff041bc-fe20-4835-88a3-9056a686c020",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.8,
        "x": 0.1,
        "y": 0.66
      },
      "kind": "quote",
      "text": "Nevro is down to 50% of my share. Two years ago I used two-thirds Nevro. Nevro is overused. The honeymoon phase, that Nevro will solve all, is over. You’ll find doctors that tell you Nevro doesn’t work.",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "aeae646b-4e68-4be4-bbe1-950178b05aed",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "There are 10 to 20 doctors like me in the country, maybe a little more, that implant stimulators at these high volumes. People like me are the majority of the implants. It’s a 90/10 rule. By and large, it’s the high volume doctors souring on Nevro. It’s a big deal that other companies can give you paresthesia-free stimulation. And Medtronic’s Intelis came on like gangbusters. It’re really tiny. I was really excited by it. — One of the most well-known KOL’s in the stimulator space; Nevro is down to 50% of my share. Two years ago I used two-thirds Nevro. Nevro is overused. The honeymoon phase, that Nevro will solve all, is over. You’ll find doctors that tell you Nevro doesn’t work. — KOL and one of Nevro’s highest volume implanters; When we poll at conferences, initially doctors who were doing Nevro were all or nothing. They had a very dedicated following. That pool has shrunk. Now more us are finding that we like to spread it around. Of the 15 to 20 implanters in New York like me, all of us are doing some Nevro and there’s not much more growth to be captured among this circle. — High volume Nevro implanter",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-3f3d-76db-b340-6029a73b9746",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.2,
        "x": 0.05,
        "y": 0.95
      },
      "kind": "source-note",
      "text": "Source: Consultation calls with experts",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "db4ea571-25cd-4a79-8ca6-393b10625ba4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.9,
        "x": 0.05,
        "y": 0.09
      },
      "kind": "title",
      "text": "9. Nevro’s current predicament – a one-tick pony stuck in a ditch – and drivers of its ongoing growth collapse",
      "attrs": null,
      "subkind": "action-title",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0e80a0ae-9e2f-4a85-ad3e-6debd1d1cd13",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.4,
        "x": 0.05,
        "y": 0.04
      },
      "kind": "title",
      "text": "Scorpion Capital | Nevro (NYSE: NVRO)",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "82f625eb-ae48-4db6-819e-62c51f5ae287",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "authority-citation",
      "slug": null,
      "matchId": "96ace6ae-db75-4b99-9e71-8daf83da2b1b",
      "evidence": "Citing KOLs and high-volume implanters to validate the thesis.",
      "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
}