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  "documentTitle": "Nevro Corp. (NVRO)",
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  "authorName": "Kir Kahlon",
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  "presentationDate": "2021-01-07 00:00:00",
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      "text": "we say it’s like a drug where you try it and then you’re hooked. Nevro began utilizing QP’s in Q2 2018 and by Q1 2019, within 3 quarters, they were completely hooked.",
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      "text": "A former regional sales director described how Nevro became hooked on channel stuffing and discounting in 2018/2019, and described how it has now conditioned key accounts to expect annual price cuts. He stated he heard that channel stuffing still occurs but with “more scrutiny.”",
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      "text": "A critical factor in Nevro’s sales growth collapse over the last two years is price discounting, a topic we have seen no sell-side or investor awareness of. Former Nevro executives, competitors, and KOL’s describe a “price war” as the major stimulator companies fight over a small group of price-sensitive ASC accounts that drive most of the industry’s volume. The pattern began as the previous CEO began using discounts in 2018 to stuff the channel as sales tanked, conditioning accounts to expect lower prices every year. Our interviews indicate the new CEO has also focused aggressively on price as a lever to drive volume, and that his actions kicked off a new round of industry discounting – “cutting off your nose to spite your face” according to a competitor. We first detail the magnitude of channel stuffing in recent years, which a former employees stated may still occur.",
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      "text": "“Nevro was categorically against what we called Quantity Purchases for the first 3 years the product was on the market. Then as they started to fall short and needed to meet quarterly numbers – we say it’s like a drug where you try it and then you’re hooked. Nevro began utilizing QP’s in Q2 2018 and by Q1 2019, within 3 quarters, they were completely hooked. Once you do one, you can’t hop off that ride. You’re now provided the account a new price point. You’re demonstrated you’ll sell at that price, and they’re shown willingness to buy at that volume. The company can’t say no because they know the volume they can move. As a director, I was the one negotiating those. I’d joke I’d write it as a one-time offer, every time I did it. For my region, on a quarterly basis, as much as 16-17% of my sales were driven by channel stuffing. I’ve heard it still takes place but more scrutiny of it.” – Former Nevro regional sales director",
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      "text": "“Nevro was categorically against what we called Quantity Purchases for the first 3 years the product was on the market. Then as they started to fall short and needed to meet quarterly numbers – we say it’s like a drug where you try it and then you’re hooked. Nevro began utilizing QP’s in Q2 2018 and by Q1 2019, within 3 quarters, they were completely hooked. Once you do one, you can’t hop off that ride. You’ve now provided the account a new price point. You’re demonstrated you’ll sell at that price, and they’re shown willingness to buy at that volume. The company can’t say no because they know the volume they can move. As a director, I was the one negotiating those. I’d joke I’d write it as a one-time offer, every time I did it. For my region, on a quarterly basis, as much as 16-17% of my sales were driven by channel stuffing. I’ve heard it still takes place but more scrutiny of it.” — Former Nevro regional sales director",
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      "text": "15. Pricing pressure and discounting are a key driver of Nevro’s collapse and doom any return to growth",
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      "text": "Scorpion Capital | Nevro (NYSE: NVRO)",
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