{ "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": 212, "pageCount": 239, "prevPage": 211, "nextPage": 213, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 0, "notes": "Includes a pull-quote from an ex-Nevro consultant and a snippet from a DOJ press release.", "elementsJson": [ "headline_text", "paragraph", "screenshot", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-2a2468219173/212", "deckHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173#slide-212", "components": [ { "bbox": null, "kind": "callout", "text": "We note that speakers programs which are essentially kickback schemes are illegal, e.g., the recent criminal convictions of Insys Therapeutics executives and some of their high volume KOL's, in connection with the \"Insys Speakers Bureau.\"", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-3f3d-76db-b349-33bd4427c205", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.4, "x": 0.05, "y": 0.42 }, "kind": "other", "text": "Manhattan Doctor Sentenced To Nearly Five Years In Prison For Accepting Bribes And Kickbacks In Exchange For Prescribing Fentanyl Drug", "attrs": null, "subkind": "unclassified", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ad0c06ce-681e-4696-a665-7268ef0c8c7a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.14 }, "kind": "paragraph", "text": "We note that speakers programs which are essentially kickback schemes are illegal, e.g., the recent criminal convictions of Insys Therapeutics executives and some of their high volume KOL's, in connection with the \"Insys Speakers Bureau.\" In a DOJ press release announcing the 5 year imprisonment of one such KOL, the US attorney described how the speakers program was used as cover. We leave it to readers to ascertain the existence or absence of any parallels, while noting that a Nevro ex-consultant and previously one of their highest volume KOL's used Insys as an analogy.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "59eb46b6-bdf3-4887-b963-6794b9dbe68a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.45, "x": 0.05, "y": 0.6 }, "kind": "paragraph", "text": "In or about August 2012, Insys launched a “Speakers Bureau,” a roster of doctors who would conduct programs (“Speaker Programs”) purportedly aimed at educating other practitioners about Subsys. In reality, Insys used its Speakers Bureau to induce the doctors who served as speakers to prescribe large volumes of Subsys by paying them Speaker Program fees. Speakers were supposed to conduct an educational slide presentation for other health care practitioners at each Speaker Program. In reality, many of the Speaker Programs were predominantly social affairs where no educational presentation about Subsys occurred. Attendance sign-in sheets for the Speaker Programs were frequently forged by adding the names and signatures of health care practitioners who had not actually been present.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bd797e98-7c5f-473a-9597-562922867254", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.5, "w": 0.4, "x": 0.55, "y": 0.38 }, "kind": "quote", "text": "Doctors that implanted a lot of devices, they hated Nevro. I don't know doctors who were high volume Nevro implanters that liked it and continued with their device. The high volume Nevro implanters today who are involved with Nevro's studies – I saw the guys who went to jail for prescribing the Insys fentanyl drug. An Insys VP was saying how he hired hookers and strippers. You have to remember the doctor runs the show. And the only way I know to change that doctor's practice paradigm is bribing. It works. You give a doctor some money and they will say whatever you want. I would imagine Nevro probably doesn't give them money. They just hire them as consultants, pay them to give lectures and to teach classes. Doctors are whores – Ex-Nevro consultant and high volume implanter", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f3faeb91-dee0-498c-af56-87b92f89a3cb", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"Doctors that implanted a lot of devices, they hated Nevro. I don't know doctors who were high volume Nevro implanters that liked it and continued with their device. The high volume Nevro implanters today who are involved with Nevro's studies – I saw the guys who went to jail for prescribing the Insys fentanyl drug. An Insys VP was saying how he hired hookers and strippers. You have to remember the doctor runs the show. And the only way I know to change that doctor's practice paradigm is bribing. It works. You give a doctor some money and they will say whatever you want. I would imagine Nevro probably doesn't give them money. They just hire them as consultants, pay them to give lectures and to teach classes. Doctors are whores\" — Ex-Nevro consultant and high volume implanter", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-3f3d-76db-b349-35389635acfb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.8, "x": 0.05, "y": 0.95 }, "kind": "source-note", "text": "Source: https://www.justice.gov/usao-sdny/pr/manhattan-doctor-sentenced-nearly-five-years-in-prison-accepting-bribes-and-kickbacks; consultation calls with experts", "attrs": { "numbered": true }, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c896a7f0-5fd3-47d4-833c-81f96d7eaf79", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.9, "x": 0.05, "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": "cde4c354-31de-45c6-8971-4aa590008d1a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.4, "x": 0.05, "y": 0.04 }, "kind": "title", "text": "Scorpion Capital | Nevro (NYSE: NVRO)", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9eee79a4-49e8-4bfb-8a41-1357830a2214", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "antagonist-introduction", "slug": null, "matchId": "91638105-b82a-42c7-8364-6bb2bb2a7fcd", "evidence": "The slide frames Nevro's business practices as analogous to the criminal activities of Insys Therapeutics.", "confidence": 0.8 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }