{ "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": 185, "pageCount": 239, "prevPage": 184, "nextPage": 186, "slideType": "testimonial", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 0, "notes": "The slide uses direct quotes from industry experts to undermine the investment thesis of Nevro, specifically targeting the idea of a potential acquisition.", "elementsJson": [ "headline_text", "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-2a2468219173/185", "deckHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173#slide-185", "components": [ { "bbox": null, "kind": "callout", "text": "They can crush Nevro at a systems level if they want to. The big buys can crush them in hospitals.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-3f3d-76db-b346-76555cfe6e5b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.9, "x": 0.06, "y": 0.13 }, "kind": "paragraph", "text": "Not surprisingly, whenever we asked former Nevro executives and even KOL’s who still use the company’s device whether they would invest in the company, they said no. One KOL called it “like a pump in the dump [sic].” Another high volume implanter said he was thinking of shorting it. Others wondered whether the company could survive the “wave of new stimulator” entrants, stated the market is “over-saturated”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6a3b4981-caea-4f78-a2a6-4603f1fe7c08", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.9, "x": 0.06, "y": 0.51 }, "kind": "quote", "text": "“I don’t see a whole lot of innovation. They’re stuck with one product which makes them very vulnerable unlike other companies. I’m a bit wary. I’m not sure they can survive the wave of new stimulator companies. A number are coming into the field. Spinal cord stimulation seems over-saturated. And a lot of doctors are not enthused about Nevro. That critical mass will turn the ride. They’ve plateaued. They won’t grow their market further. The competition is key to understand. There are ways to get around their patents.” – High volume Nevro implanter", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0f9f2f0a-501e-4ad6-aa35-70a353f1bf8f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.22, "w": 0.9, "x": 0.06, "y": 0.27 }, "kind": "quote", "text": "“I wouldn’t invest in Nevro. I did at IPO. I was thinking of shorting Nevro. Their competitive advantage got eaten away as everyone caught up. You can never discount what Medtronic comes up with. They were forgotten about yet they were the first stimulator company. They’re the biggest device company in the world. Their pipeline across the board will have hits. There’s a reason they’re so well entrenched. Medtronic and Abbot can contract out stimulators with a broader product portfolio. They can bundle. They can crush Nevro at a systems level if they want to. The big buys can crush them in hospitals.” – KOL and high volume implanter", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "265a2d56-cec1-4c81-a652-73929a8214ad", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.06, "y": 0.71 }, "kind": "quote", "text": "“My broker was really pushing Nevro stock because [prominent underwriting bank] was pushing them. They’re the ones that brought Nevro public and they were saying how great it was doing. I knew the opposite as a high volume implanter. But the bank was still pushing it. I don’t know if they didn’t know or they didn’t care, but I thought Nevro is like a pump in the dump [sic].” – KOL and former high volume Nevro implanter", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "42c29173-b308-4f68-9092-f8dceef140a5", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"I wouldn't invest in Nevro. I did at IPO. I was thinking of shorting Nevro. Their competitive advantage got eaten away as everyone caught up... They can crush Nevro at a systems level if they want to. The big buys can crush them in hospitals.\" — KOL and high volume implanter; \"I don't see a whole lot of innovation. They're stuck with one product which makes them very vulnerable unlike other companies... Spinal cord stimulation seems over-saturated.\" — High volume Nevro implanter; \"My broker was really pushing Nevro stock because [prominent underwriting bank] was pushing them... I knew the opposite as a high volume implanter. But the bank was still pushing it. I don't know if they didn't know or they didn't care, but I thought Nevro is like a pump in the dump [sic].\" — KOL and former high volume Nevro implanter", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-3f3d-76db-b346-7b842307d639", "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": "96d706a0-a520-45bf-9c83-5377ba602fdd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.6, "x": 0.06, "y": 0.09 }, "kind": "title", "text": "13. Investor hopes of a Nevro acquisition are delusional and misinformed", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "abe66f7d-c30e-4d24-8f44-ee279fcc324f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.4, "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": "0d84ed18-6083-46cf-8021-65b88cee4066", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "antagonist-introduction", "slug": null, "matchId": "b650ee79-85ab-4bdf-8184-f11edb4da37e", "evidence": "The slide frames Nevro as the 'villain' or failing entity through expert testimonials.", "confidence": 0.7 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }