{ "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": 188, "pageCount": 239, "prevPage": 187, "nextPage": 189, "slideType": "villain_critique", "function": "name_villain", "density": "overcrowded", "nDataPoints": 4, "notes": "The slide uses expert quotes to build a narrative of competitive vulnerability for Nevro.", "elementsJson": [ "headline_text", "paragraph", "bullet_list", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-2a2468219173/188", "deckHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173#slide-188", "components": [ { "bbox": null, "kind": "callout", "text": "A senior executive in the space indicated that Saluda will launch shortly and take 3 to 5 points of Nevro's current 15-17% share – or ~18-33% of their revenue.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-3f3d-76db-b347-9782d1c54ccb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.88, "x": 0.06, "y": 0.38 }, "kind": "list", "text": "A Nevro ex-executive states their customer base is the type that will switch to Saluda and that the impact “is going to be significant.”", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0c14c1c2-b300-40e2-b8fc-46036a232e08", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.88, "x": 0.06, "y": 0.61 }, "kind": "list", "text": "A senior executive in the space indicated that Saluda will launch shortly and take 3 to 5 points of Nevro’s current 15-17% share – or ~18-33% of their revenue.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e32ab37b-9740-4657-a9c6-f6dc2a61478a", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "market share: 18-33%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-3f3d-76db-b347-9c42d335cbce", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.22, "w": 0.88, "x": 0.06, "y": 0.09 }, "kind": "paragraph", "text": "14. Unknown to most investors, Nevro faces an impending, disruptive competitive threat within 6 to 12 months: Saluda Interviews with KOL’s, Nevro ex-executives and sales reps, and competitors indicate tremendous enthusiasm and anticipation for Saluda’s device, with an impending disruption that one executive estimated could eradicate 18-33% of Nevro’s business. We highlight comments by a former Nevro executive that the company is the most vulnerable among SCS players, given that it attracted a fickle implanter base that quickly bounces to the next hot launch. The strength of comments broadly across our 35+ interviews suggests a looming and disastrous competitive scenario.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "50559d3f-2c96-486a-9c2b-0bb9266e8020", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.23, "w": 0.83, "x": 0.11, "y": 0.67 }, "kind": "quote", "text": "The dynamic that's going to happen next is Saluda’s launch. I know things have been delayed for Saluda because of COVID. They wanted to initiate their commercialization now, but it's going to be a little while. They are going to gain an adoption rate, I think, similar to what Nevro did in their first 36 months, and people are going to want to try it. The reason is their key relationships in the physician community. I don't really view Nevro as the new kid on the block anymore. They've been around long enough for physicians to say, \"The results are bad and I'm going to explant this product.\" It's been through a life cycle. They have the share that they have and they're trying to compete with hand-to-hand combat. I see them losing three to five points of share, which is a lot.\" - Senior executive in the SCS space", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "80fdc9ce-9525-439d-ae21-a22a67f11c84", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.13, "w": 0.83, "x": 0.11, "y": 0.44 }, "kind": "quote", "text": "Nevro’s customers want to try Saluda. They are the early adopters that like all the new technology. Nevro is being put in a box. New technology affects them more than anybody. The impact that Saluda has on Nevro is going to be significant, because their customers are the ones who say “Hey, I need something different. Saluda is going to recruit some good commercial leaders and now all of a sudden, Nevro is not the new technology anymore.” - Former Nevro executive", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c4909c39-106f-4469-a919-bc3d26664a42", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"Nevro's customers want to try Saluda. They are the early adopters that like all the new technology. Nevro is being put in a box. New technology affects them more than anybody. The impact that Saluda has on Nevro is going to be significant, because their customers are the ones who say 'Hey, I need something different. Saluda is going to recruit some good commercial leaders and now all of a sudden, Nevro is not the new technology anymore.\" — Former Nevro executive; \"The dynamic that's going to happen next is Saluda's launch. I know things have been delayed for Saluda because of COVID. They wanted to initiate their commercialization now, but it's going to be a little while. They are going to gain an adoption rate, I think, similar to what Nevro did in their first 36 months, and people are going to want to try it. The reason is their key relationships in the physician community. I don't really view Nevro as the new kid on the block anymore. They've been around long enough for physicians to say, 'The results are bad and I'm going to explant this product.' It's been through a life cycle. They have the share that they have and they're trying to compete with hand-to-hand combat. I see them losing three to five points of share, which is a lot.\" — Senior executive in the SCS space", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-3f3d-76db-b347-9a1ffb278cdd", "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": "fecef53b-adc2-4fcf-8a45-3086c119322f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.35, "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": "4efbc459-6ac2-468f-87ef-260ad0886bb1", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }