REDWOOD CITY, Calif.,
April 1, 2020 /PRNewswire/ -- Nevro
Corp. (NYSE: NVRO), a global medical device company that is
providing innovative, evidence-based solutions for the treatment of
chronic pain, today announced preliminary unaudited worldwide
revenue for the quarter ended March 31,
2020 and the withdrawal of its full year 2020 financial
guidance issued on February 25,
2020. In addition, the Company provided an update on the
actions it is taking in response to the COVID-19 pandemic.
First Quarter 2020 Update
Preliminary unaudited first
quarter 2020 worldwide revenue is expected to be in the range of
$86.4 to $86.9
million, a 5-6% increase compared to $82.1 million in the first quarter of 2019.
First quarter 2020 revenue was negatively impacted by a rapid
deceleration in March due to COVID-19 shelter-in-place policies and
restrictions on elective surgical procedures around the
world.
Preliminary unaudited first quarter 2020 U.S. revenue is
expected to be $74.9 to $75.2 million, a 14% increase compared to
$65.8 million in the prior year
period. Year-over-year, U.S. trial growth was 6% and
permanent implant growth was 12% during the first quarter of
2020. U.S. trial growth was 20% and permanent implant growth
was 29% for the two months ended February
29, 2020, compared to the prior year period. Cases
totaling approximately $16.5 million
were cancelled during the month of March
2020.
Preliminary unaudited first quarter 2020 international revenue
is expected to be $11.5 to
$11.7 million, a decrease of 29% to
30% as reported, compared to $16.3
million in the prior year period. The decrease in
international revenue was primarily due to the impact of COVID-19
related government restrictions on elective procedures implemented
in Europe and Australia during the latter half of the
quarter.
Preliminary unaudited first quarter 2020 operating expenses are
expected to be at or below approximately $90
million.
Full Year 2020 Financial Guidance
Due to the rapidly
evolving environment and continued uncertainties resulting from the
impact of COVID-19, Nevro is withdrawing its previously announced
annual guidance for 2020, which was issued on February 25, 2020. At this date, Nevro
cannot predict the extent or duration of the impact of the COVID-19
virus on its financial and operating results, but the Company
believes the shelter-in-place policies and suspension of elective
procedures worldwide will substantially impact revenue in the
second quarter of 2020. As of December
31, 2019, Nevro had approximately $238 million in cash, cash equivalents and
short-term investments. Nevro intends to maintain the strength
of its commercial organization in preparation for what the
Company believes could be an active recovery period in the second
half of 2020 and early 2021. Nevro plans to provide
additional information, to the extent practicable, during its first
quarter earnings call in early May.
COVID-19 Updates
"We are grateful to the healthcare
professionals around the world who are tirelessly caring for
patients on the front lines of this pandemic, and our thoughts go
out to all who have been affected," said D. Keith Grossman, Chairman, CEO and President of
Nevro. "During this challenging time, we have proactively
implemented multiple initiatives to support our customers, patients
and employees as well as preserve our future business growth
opportunities. Prior to COVID-19, our sales in the first two
months of the year were ahead of our expectations and we believe
the initiatives we've put in place will enable us to reemerge from
this global health crisis in a position of strength. We
expect that our unique ability to capture patient scheduling and
outcomes data with NevroCloud will enable us to proactively support
our patients' progress for our customers throughout this
crisis. More than 3,000 patients have recently had trials in
the U.S. with the Company's products and many of those patients are
now awaiting permanent implants. We stand ready to help our
customers return to growth as soon as the ability to perform
elective procedures is restored."
As a medical device company that provides implantable devices
and on-site support to physicians in hospitals, surgery centers and
private practices, Nevro's highest priority is the health and
safety of healthcare professionals, patients and employees.
In response to this global pandemic, the Company has quickly
responded in recent weeks to help protect its communities while
continuing to support customers and maintain its business:
- Health and Safety. To protect the health and
safety of Nevro customers, their patients and employees, the
Company has implemented the latest recommendations from public
health authorities worldwide. The Company has restricted
business-related travel and has asked all employees who can work
from home to do so until further notice.
- Maintaining Nevro's 'Patient First' Commitment.
Nevro remains fully committed to helping patients who suffer from
chronic debilitating pain, as well as its physician customers who
care for them. The Company has built an effective patient
care infrastructure with phone-based therapy support specialists,
field-based sales and clinical support teams. All of the
Company's patient-support teams remain available to support
customers and patients, while following applicable restrictions,
safety precautions and procedures.
- Operating Nevro's Business. Nevro believes its
fundamental business opportunity remains unchanged and that the
strong momentum from its growth drivers, such as its proprietary
HF10 therapy and the recent Senza Omnia product launch, will be
regained when the ability to perform elective procedures
returns. The Company remains focused on managing expenses and
driving operating efficiency in our business. Future growth
drivers such as the current trials to support expanded use in PDN
(Painful Diabetic Neuropathy) and NSRBP (Non-Surgical Refractory
Back Pain) will continue to move forward as well.
About Nevro
Headquartered in Redwood City, California, Nevro is a global
medical device company focused on providing innovative products
that improve the quality of life of patients suffering from
debilitating chronic pain. Nevro has developed and
commercialized the Senza spinal cord stimulation (SCS) system, an
evidence-based, non-pharmacologic neuromodulation platform for the
treatment of chronic pain. HF10 therapy has demonstrated the
ability to reduce or eliminate opioids in ≥65% of patients across
six peer-reviewed clinical studies. The Senza®
System, Senza II™ System, and the Senza® Omnia™
System are the only SCS systems that deliver Nevro's
proprietary HF10® therapy. Senza, Senza II, Senza Omnia,
HF10, Nevro and the Nevro logo are trademarks of Nevro
Corp.
To learn more about Nevro, connect with us on LinkedIn, Twitter,
Facebook and Instagram.
Forward-Looking Statements
In addition to historical
information, this press release contains forward-looking statements
reflecting the Company's current beliefs and expectations of
management made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, including: the
belief that the shelter-in-place policies and suspension of
elective procedures worldwide will substantially impact our
revenue; the belief that we have proactively implemented multiple
initiatives to preserve our future business growth opportunities;
our belief we will reemerge from the COVID-19 health crisis in a
position of strength; our intention to maintain the strength of our
commercial organization in preparation for what we believe will be
an active recovery period in the second half of 2020 and early
2021; the belief that our fundamental business opportunity remains
unchanged, and that the strong momentum from our growth drivers,
such as our proprietary HF10 therapy and the recent Senza Omnia
product launch will be regained when the ability to perform
elective procedures returns; and the belief that future growth
drivers such as the current trials to support expanded use in PDN
and NSRBP will continue to move forward once the restrictions on
clinical studies is lifted. These forward-looking statements
are based upon information that is currently available to us or our
current expectations, speak only as of the date hereof, and are
subject to numerous risks and uncertainties, including our ability
to successfully commercialize our products; our ability to
manufacture our products to meet demand; the level and availability
of third-party payor reimbursement for our products; our ability to
effectively manage our anticipated growth and the costs and
expenses of operating our business; our ability to protect our
intellectual property rights and proprietary technologies; our
ability to operate our business without infringing the intellectual
property rights and proprietary technology of third parties;
competition in our industry; additional capital and credit
availability; our ability to attract and retain qualified
personnel; and product liability claims. These factors,
together with those that are described in greater detail in our
Annual Report on Form 10-K filed on February
25, 2020, as well as any reports that we may file with the
Securities and Exchange Commission in the future, may cause our
actual results, performance or achievements to differ materially
and adversely from those anticipated or implied by our
forward-looking statements. We expressly disclaim any
obligation, except as required by law, or undertaking to update or
revise any such forward-looking statements. Nevro's operating
results for the first quarter ended March
31, 2020 are not necessarily indicative of our operating
results for any future periods.
In addition, with respect to COVID-19, we are currently unable
to reasonably estimate the extent or duration of the impact of the
COVID-19 pandemic on our financial and operating results. We
are also unable to predict how the pandemic will affect the
availability of physicians and/or their treatment prioritizations
or the impact of the outbreak on the overall healthcare
infrastructure. In addition to impact on procedure volumes,
we are experiencing and may experience other disruptions as a
result of the COVID-19 pandemic. For example, our clinical
trials may be adversely affected. Other disruptions or potential
disruptions include restrictions on the ability of Company
personnel to travel and access customers for case support; delays
in approvals by regulatory bodies; delays in product development
efforts; and additional government requirements to "shelter in
place" or other mitigation efforts that may further impact our or
our suppliers' capacity to manufacture, sell and support the use of
our products. The total impact of these disruptions could
have a material impact on our financial condition, cash flows and
results from operations.
Investor Relations:
Juliet
Cunningham
Vice President, Investor Relations
+1 650-433-3247
ir@nevro.com
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SOURCE Nevro Corp.