Nevro Initiates Plan for Manufacturing Operations in Costa Rica to Support Future Growth
REDWOOD CITY, Calif., Sept. 14, 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 that it will establish global manufacturing operations in Costa Rica to invest in and support the Company's future growth expectations.
"Nevro has been successful through its early years with outsourced manufacturing and highly supportive supply chain partners," said D. Keith Grossman, Chairman, CEO and President of Nevro. "As part of our growth plans moving forward, Nevro is establishing insourced global manufacturing for its pipeline of future products to ensure that we have the most efficient cost structure and flexible capacity, while maintaining the highest level of quality control as we scale."
Nevro has entered into a 10-year lease for a 35,000 square foot manufacturing facility in Costa Rica. Total capital expenditures are expected to be approximately $11 million from 2020-2023 with an additional $10 million of implementation costs over the same period. The Company expects the new manufacturing facility to be validated and approved in 2022, after which the Company believes it will realize cost efficiencies and gross margin improvements from this initiative.
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.
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: our statements regarding our long-term prospects for growth and product innovation; expectations for capital expenditures and implementation costs associated with the Costa Rica manufacturing facility; and our ability to realize cost efficiencies and gross margin improvement from the insourced manufacturing initiative. 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 Quarterly Report on Form 10-Q filed on August 5, 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.
Vice President, Investor Relations
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SOURCE Nevro Corp.
Company Codes: NYSE:NVRO