{ "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": 78, "pageCount": 239, "prevPage": 77, "nextPage": 79, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 0, "notes": "Uses direct quotes from company filings and website to frame the 'paresthesia-free' claim as a vulnerability.", "elementsJson": [ "headline_text", "paragraph", "quote_block", "screenshot" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-2a2468219173/78", "deckHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173#slide-78", "components": [ { "bbox": { "h": 0.08, "w": 0.9, "x": 0.06, "y": 0.44 }, "kind": "callout", "text": "\"Our proprietary paresthesia-free HF10 therapy, delivered by our Senza system, was demonstrated in our SENZA-RCT study to be superior to traditional SCS therapy...\"", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1d143be8-0fe4-4e2d-ab6b-782e26402078", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.38, "x": 0.58, "y": 0.72 }, "kind": "callout", "text": "\"While traditional spinal cord stimulation (SCS) has been around for over 30 years, Nevro created a disruption by offering a next-generation approach called HF10 therapy...\"", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "84d1aece-c2d9-4eeb-85b5-b1346df97618", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.06, "y": 0.57 }, "kind": "callout", "text": "\"Traditional SCS therapy generates paresthesia... We believe the ability of HF10 therapy to deliver pain relief without paresthesia provides a substantial benefit...\"", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d1fa824f-3c01-4ecc-9de8-56f66361c96d", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "The core of the high frequency premise – and Nevro’s entire reason for existence – is based on the notion of “paresthesia-free”.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-3f3d-76db-b33c-84880846b853", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.5, "x": 0.06, "y": 0.72 }, "kind": "image", "text": "Nevro's \"About\" page", "attrs": null, "subkind": "screenshot", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2c464636-fc11-4e29-8f67-370b565a07a5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.4, "x": 0.06, "y": 0.41 }, "kind": "paragraph", "text": "Opening paragraph of Nevro's 2020 10K", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "995a1fee-bb0d-4ce3-949d-32235cd859dc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.06, "y": 0.13 }, "kind": "paragraph", "text": "The core of the high frequency premise – and Nevro's entire reason for existence – is based on the notion of \"paresthesia-free\". Traditional, lower frequency stimulators cause tingling, known as paresthesia, in an attempt to mask the pain.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c3009704-4e95-4bf4-bad1-39591db438fe", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.6, "x": 0.06, "y": 0.54 }, "kind": "paragraph", "text": "Excerpt from 10K, which mentions \"paresthesia\" 36 times across various sections", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "eb7b1915-f2ad-4db1-965f-cbb0f6f5820a", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“Our proprietary paresthesia-free HF10 therapy, delivered by our Senza system, was demonstrated in our SENZA-RCT study to be superior to traditional SCS therapy, with HF10 therapy being nearly twice as successful in treating back pain and 1.5 times as successful in treating leg pain when compared to traditional SCS therapy.” — Nevro 2020 10K", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-3f3d-76db-b33c-88aa3d14818e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.4, "x": 0.06, "y": 0.94 }, "kind": "source-note", "text": "Source: Nevro 10K; https://www.nevro.com/English/us/about/overview/default.aspx", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fba5efc9-3e63-4c0a-bb6a-f51b7f49edc2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.8, "x": 0.06, "y": 0.09 }, "kind": "title", "text": "5. High frequency is Nevro's fatal flaw and dooms any turnaround", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2dcdd77f-fa52-4aee-b9c6-2b3cf997d462", "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": "7c17735e-f6bf-46ef-827a-d138b1667872", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "antagonist-introduction", "slug": null, "matchId": "37214cad-50c4-41b9-b417-5cc887922d42", "evidence": "Frames the company's core technology as a 'fatal flaw' and 'disruption' that is actually a weakness.", "confidence": 0.8 } ], "arcBeats": [ { "to": 150, "from": 51, "beatId": "903c076a-f368-4ca1-844c-277874c1afb2", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "The Victory", "beatSlug": "overcoming-monster-the-victory", "evidence": "The deck presents a conclusion that Nevro's problems are insurmountable", "position": 2, "confidence": 0.8, "parentBeatName": "Turn", "parentBeatSlug": "turn" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }