{ "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": 143, "pageCount": 239, "prevPage": 142, "nextPage": 144, "slideType": "villain_critique", "function": "name_villain", "density": "overcrowded", "nDataPoints": 0, "notes": "Uses testimonial-style quotes from a competitor's regional sales manager to undermine the target company's product launch.", "elementsJson": [ "headline_text", "paragraph", "bullet_list", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-2a2468219173/143", "deckHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173#slide-143", "components": [ { "bbox": null, "kind": "callout", "text": "Competitor color on Omnia’s lack of traction was consistent around the country: “a dud.”", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-3f3d-76db-b342-9c47b0be67f8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.88, "x": 0.06, "y": 0.53 }, "kind": "list", "text": "He indicated that Omnia undermines Nevro’s positioning and credibility, and that its field salesforce isn’t even trained in the paresthesia-mapping required to implant a low-frequency stimulator", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9585b224-9638-495b-a4da-aefd96b14e72", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.88, "x": 0.06, "y": 0.26 }, "kind": "list", "text": "A longtime regional manager overseeing one of the largest territories for a key competitor expects Omnia to be “a dud” and that he has seen no material “uptick for Omnia.” He stated that competitors are leveraging Nevro’s about-face toward low-frequency stimulation.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bed1992d-7c9a-49f9-b8d7-b887292be710", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.11, "w": 0.88, "x": 0.06, "y": 0.13 }, "kind": "paragraph", "text": "Competitor color on Omnia’s lack of traction was consistent around the country: “a dud.” A regional manager explained that Nevro’s salesforce isn’t even trained in paresthesia-mapping, the method by which low-frequency stimulators are implanted – yet another reason why Omnia, per Grossman’s comments, remains almost exclusively a high frequency stimulator.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d84f8e65-c148-436f-b805-fb81189cb5ee", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.85, "x": 0.09, "y": 0.36 }, "kind": "quote", "text": "“I have not seen a big uptick for Omnia in our territory. I think it'll be a dud. We've been pushing hard against their being all in on high frequency, and now allowing low-dose and multiple waveforms even though everything they've done and all their studies are around 10khz. They're trying to get Omnia into some of their old accounts now. If a patient comes in requesting Nevro, that’s about the only time that Nevro is getting implanted in other accounts” – Regional sales manager at one of Nevro’s largest competitors", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "74815f0a-547b-41b3-85cb-5cdba36a76d5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.22, "w": 0.85, "x": 0.09, "y": 0.6 }, "kind": "quote", "text": "“Part of Nevro’s messaging is that it's easy to implant. You throw the leads in; you scan T9/T10; there's no in or out testing. It's very simple. But if you need to switch to low-dose and you need to do mapping, you have no idea what you're getting into as a doctor. Nevro never trained a lot of their reps on it. Now they're asking their field to retrain on classic spinal cord stimulation. We leverage that. You've done an about-face and now all of a sudden you're trying to do what every other company is doing. At least in our market, high frequency hasn't been the silver bullet you promoted and now you're just like everybody else.” – Regional sales manager at one of Nevro’s largest competitors", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "acab5fee-63ba-4036-a395-63331487ce50", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“I have not seen a big uptick for Omnia in our territory. I think it'll be a dud. We've been pushing hard against their being all in on high frequency, and now allowing low-dose and multiple waveforms even though everything they've done and all their studies are around 10khz. They're trying to get Omnia into some of their old accounts now. If a patient comes in requesting Nevro, that's about the only time that Nevro is getting implanted in other accounts” — Regional sales manager at one of Nevro's largest competitors; “Part of Nevro's messaging is that it's easy to implant. You throw the leads in; you scan T9/T10; there's no in or out testing. It's very simple. But if you need to switch to low-dose and you need to do mapping, you have no idea what you're getting into as a doctor. Nevro never trained a lot of their reps on it. Now they're asking their field to retrain on classic spinal cord stimulation. We leverage that. You've done an about-face and now all of a sudden you're trying to do what every other company is doing. At least in our market, high frequency hasn't been the silver bullet you promoted and now you're just like everybody else.” — Regional sales manager at one of Nevro's largest competitors", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-3f3d-76db-b342-a02b018fe997", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.2, "x": 0.06, "y": 0.96 }, "kind": "source-note", "text": "Source: Consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c79f177a-4343-4b38-bdab-99af26a1ea87", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.88, "x": 0.06, "y": 0.09 }, "kind": "title", "text": "10. The new Omnia stimulator, the centerpiece of Nevro’s turnaround hopes, is a Hail Mary and colossal flop", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d2ec730d-e496-442a-9721-c8a34aa5ed09", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.45, "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": "3bda7cec-1ebc-4ecc-b2e5-f9af8f4187fb", "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 }