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  "documentTitle": "Nevro Corp. (NVRO)",
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      "text": "The executive is skeptical of Nevro’s value and wouldn’t invest, and explained why the business model will never be profitable",
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      "text": "The company’s market share remains stagnant at 15-17% and won’t grow given competitor’s structural advantages and scale",
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      "text": "A third former executive was equally skeptical and described Nevro’s predicament as structural and not operational, doubted the possibility of any turnaround, and stated the business model is unfixable: “I would not invest in Nevro today.”",
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      "text": "I would not invest in Nevro today. The outlook is so unclear. I don’t know that I see the long-term value. It’s just a question of what’s the long term business model for a company in the SCS space - the heavy ongoing cost associated with support and retention of physicians and patients. You’ve got sales being made by experienced, very high-cost sales representatives, so that’s going to be your upfront cost and then, in order to retain physician business, their expectation is for continued support of their implanted patient, so you can’t ever disentangle yourself from the burden and that base only increases over time. A big reason the company is unprofitable is the cost of sales. You’ve got a high touch business where they’re having to follow up all the time and put in face time with their physicians and you’ve got the patients needing ongoing support and optimization. Once you factor all of that in, the profit margin is very slim.",
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      "text": "If they’re tracking at 15-17% share right now, I think the question is, is there anything else that can significantly move the needle? And I don’t know that there is with the landscape of the SCS market being what it is. The other big companies, especially Boston and Abbott, have spent enormous time and resources on very strong KOL and relationship development and have very, very strong marketing and sales organizations and that’s going to be hard to crack.",
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      "text": "\"If they're tracking at 15-17% share right now, I think the question is, is there anything else that can significantly move the needle? And I don't know that there is with the landscape of the SCS market being what it is. The other big companies, especially Boston and Abbott, have spent enormous time and resources on very strong KOL and relationship development and have very, very strong marketing and sales organizations and that's going to be hard to crack.\" — Former Nevro executive; \"I would not invest in Nevro today. The outlook is so unclear. I don't know that I see the long-term value. It's just a question of what's the long term business model for a company in the SCS space - the heavy ongoing cost associated with support and retention of physicians and patients... Once you factor all of that in, the profit margin is very slim.\" — Former Nevro executive",
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