{ "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": 125, "pageCount": 239, "prevPage": 124, "nextPage": 126, "slideType": "quote_slide", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 0, "notes": "The slide uses expert testimony to undermine the company's market position and stock performance.", "elementsJson": [ "headline_text", "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-2a2468219173/125", "deckHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173#slide-125", "components": [ { "bbox": null, "kind": "callout", "text": "The Medtronic regional manager stated that Nevro “lost all of that revenue” from their launch and that “all of [the doctors they poached] are done with Nevro. They won’t even listen to them.”", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-3f3d-76db-b341-6a5d1215920f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.9, "x": 0.05, "y": 0.13 }, "kind": "paragraph", "text": "The Medtronic regional manager stated that Nevro “lost all of that revenue” from their launch and that “all of [the doctors they poached] are done with Nevro. They won’t even listen to them.” The primary reason was lack of efficacy and explants, followed by the device’s bulkiness and lack of MRI compatibility. He stated that the sales reps Nevro poached have all either returned to Medtronic or left Nevro, adding he was incredulous at Nevro’s stock given what he sees in territories across the US: a lack of clinical outcomes; the new Omnia device flopping; and “shrinking” market share. He stated Medtronic now views Nevro as irrelevant.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bad27ffb-6601-44f7-aa78-30cf4cdb0e68", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.22, "w": 0.9, "x": 0.05, "y": 0.69 }, "kind": "quote", "text": "To be honest, we watch their stock and we’re like \"What are we missing?\" In our market, we don't see a ton of good outcomes. Omnia has really not done anything. We hear rumbling from Caraway [Nevro’s Chief Medical Officer] that they're researching more indications, and we just don't know how a one-trick pony makes any headway. We can't figure it out - they continue to do well on Wall Street, but I do not see any movement or any changes here. If anything, they're shrinking here. Frankly, there's very little discussion of Nevro at this point at Medtronic, at our national sales meeting. or really any talk about their taking business away. A lot of the reps that they hired away are now either back with Medtronic or have moved on. That's pretty common from what I can tell in territories across the country.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2ca340c9-d5ea-4b2c-9f49-d77671916466", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.9, "x": 0.05, "y": 0.48 }, "kind": "quote", "text": "Basically, Nevro lost all of that revenue from docs that came on their initial wave. All of them are done with Nevro. They won’t even listen to them. Their number-one complaint was lack of efficacy. Patients just weren’t getting the pain relief that they were promised or presented in the RCT. Number two was the size of their device. They really had a lot of problems with the bulkiness and the size of it. And three, the lack of MRI compatibility. They were running into MRI centers not willing to do MRIs even though they had the full-body MRI label for the percutaneous systems, and it just got to be too much of a headache.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "629a67b8-3817-4d46-baa1-7650f921318c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.35 }, "kind": "quote", "text": "Then in 2018, we had a huge rebound year. Medtronic launched a new product called Intellis, and we were also getting a lot of Nevro explants. We had a phenomenal year in 2019. Abbott with their non-rechargeable device dinged us a little bit in a couple of different spots. All in all, we've been able to maintain our growth, and hopefully, we'll continue to do so", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fd5e34d3-2a35-4b68-98bc-ddc46c4217eb", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“Basically, Nevro lost all of that revenue from docs that came on their initial wave. All of them are done with Nevro. They won’t even listen to them. Their number-one complaint was lack of efficacy. Patients just weren't getting the pain relief that they were promised or presented in the RCT. Number two was the size of their device. They really had a lot of problems with the bulkiness and the size of it. And three, the lack of MRI compatibility. They were running into MRI centers not willing to do MRIs even though they had the full-body MRI label for the percutaneous systems, and it just got to be too much of a headache.” — Medtronic regional manager", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-3f3d-76db-b341-6e270d28501d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.2, "x": 0.05, "y": 0.96 }, "kind": "source-note", "text": "Source: Consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cc9a0635-782b-477f-9539-a7d6f78f3ea8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.9, "x": 0.05, "y": 0.09 }, "kind": "title", "text": "9. Nevro’s current predicament – a one-trick pony stuck in a ditch – and drivers of its ongoing growth collapse", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d4022fb9-6a75-45cb-af87-bc68c260b3e1", "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": "abd49e28-610b-465a-93a2-f363774f298e", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "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 }