{
  "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": 208,
  "pageCount": 239,
  "prevPage": 207,
  "nextPage": 209,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 4,
  "notes": "Includes source links to a German-language publication (SonntagsBlick) and Google Translate versions.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "screenshot",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9a-2a2468219173/208",
  "deckHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173#slide-208",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "The company rewards doctors with 10,000 francs per procedure",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-3f3d-76db-b348-36c348ba219c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.22,
        "w": 0.59,
        "x": 0.06,
        "y": 0.28
      },
      "kind": "image",
      "text": "Bonuses encourage more operations. The company rewards doctors with 10,000 francs per procedure",
      "attrs": null,
      "subkind": "screenshot",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9981cfc0-61be-4200-aec8-e30806d45d8e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.88,
        "x": 0.06,
        "y": 0.13
      },
      "kind": "paragraph",
      "text": "We translated the source article in the German-language publication, using Google Translate. We interpret the article to imply that Nevro terminated the program \"with immediate effect\" when asked and did not dispute its existence. We note the translation below may be incorrect. If the scheme wasn't terminated until the paper asked about it in early 2020, that would imply that it continued under the current CEO for about a year.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4622a58a-f708-4bcf-9ea3-ad024a2f13d5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.56,
        "x": 0.06,
        "y": 0.53
      },
      "kind": "paragraph",
      "text": "The industry is silent on this subject as if it were a state secret. But SonntagsBlick is now the contract that Nevro had signed for 2019 with Swiss doctors and clinics. For the first time, outsiders get a detailed insight into how the system works.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "653bd94b-352d-4aba-933c-391bd6db0b64",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.56,
        "x": 0.06,
        "y": 0.63
      },
      "kind": "paragraph",
      "text": "If a doctor brings implants for 400,000 francs to the public, he receives 80,000 francs in cash back. That's enough for a Patek Philippe watch. Those who put Nevro stimulators in the back of their patients for CHF 800,000 will be rewarded with CHF 160,000. With that you can already buy a Maserati - so it pays off for pain medicine specialists if they opt for the expensive procedure.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "754aee96-394e-40ef-8f03-75ee34164ca4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "Bonuses encourage more operations — SonntagsBlick",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-3f3d-76db-b348-39defb16850e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.9,
        "x": 0.06,
        "y": 0.85
      },
      "kind": "source-note",
      "text": "Source: Original https://www.blick.ch/schweiz/boni-verleiten-zu-mehr-operationen-firma-belohnt-aerzte-mit-10000-franken-pro-eingriff-id15750793.html; Google Translate version https://translate.google.com/translate?sl=auto&tl=en&u=https://www.blick.ch/schweiz/boni-verleiten-zu-mehr-operationen-firma-belohnt-aerzte-mit-10000-franken-pro-eingriff-id15750793.html; red ours for emphasis",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "724352f5-a1ca-458e-ba3a-fad3abd3c989",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.88,
        "x": 0.06,
        "y": 0.09
      },
      "kind": "title",
      "text": "17. We believe that Nevro's business model hinges on unsustainable kickbacks to high-volume implanters",
      "attrs": null,
      "subkind": "action-title",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "81cc1ba3-828b-4666-890a-84c84904d4e3",
      "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": "77b1bc00-61a5-442e-8b30-262dfb331fed",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "b7df404c-5ded-463c-862a-2096f72e6b09",
      "evidence": "The slide explicitly frames the company's business model as a kickback scheme.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}