Nevro's (NVRO) Latest Launch to Customize Chronic Pain Treatment
Nevro NVRO announced the launch of HFX Connect in Europe to deliver comprehensive, life-changing solutions for treating chronic pain. The company also announced the receipt of the CE mark for label expansion of the HFX SCS (spinal cord simulator) system to include painful diabetic neuropathy (PDN) and non-surgical back pain. These developments are likely to boost healthcare system efficiencies, patient access to remote optimization, and unique labeling for outcomes beyond pain relief.
The newly-launched HFX Connect has 35 pre-programmed customizable treatment plans. The HFX Connect therapy will be available to new and existing patients on Nevro’s Omnia platform.
With HFX Connect, pain specialists are likely to be able to offer patients the most flexible SCS therapy that suits their individual needs. Moreover, the improved remote adjustment features of HFX Connect can help me save time and money by reducing the need for manual programming and frequent hospital visits. This can also benefit the healthcare systems that are facing resource constraints.
Following the latest regulatory developments, HFX is the only SCS therapy globally with CE mark approval for improving sensation and relieving pain in PDN patients. This new specific labelling covers all primary SCS indications, such as Pain in the Back and Leg, Back Pain without Surgery, Diabetic Nerve Pain, and Pain in the Neck and Upper Limb.
The HFX Connect is already available in the United States and Australia.
Industry Prospects
Per a report by Market Data Forecast, the global SCS market was estimated to be $2032.5 million in 2022 and is anticipated to reach $3070 million by 2027 at a CAGR of 8.6%. Rising cases of chronic and neuropathic pain and the growing adoption of SCS therapy are likely to drive the market.
Given the market potential, the latest launch and label expansion is expected to significantly boost Nevro’s business.
Notable Developments
Earlier this month, Nevro announced its second-quarter 2023 results, where it saw a solid improvement in top-line results. The company’s robust domestic and international revenues were also impressive. An uptick in total U.S. permanent implant procedures and U.S. trial procedures was promising. The improvement in U.S. PDN trial procedures was also encouraging.
In June, Nevro announced favorable SENZA-PDN Randomized Controlled Trial data at the American Diabetes Association Scientific Sessions, which demonstrated a positive correlation between the use of high-frequency (10 kHz) Spinal Cord Stimulation and reductions in HbA1c and body weight in a sub-group of patients with type 2 diabetes at 24 months.
During the second quarter, Nevro also won two significant payer coverages — Florida Blue (updated their medical policy to include coverage for PDN, effective Jun 15, 2023) and Medicare Administrative Contractors Novitas and First Coast Service Options (who now covers PDN and Non-Surgical Back Pain following the Medicare National Coverage Determination, effective Jul 13, 2023). These look promising for the stock.
Nevro Corp. Price
Nevro Corp. price | Nevro Corp. Quote
Zacks Rank and Key Picks
Nevro currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Patterson Companies PDCO,West Pharmaceutical Services WST and McKesson MCK. While Patterson Companies sports a Zacks Rank #1 (Strong Buy), both West Pharmaceuticals and McKesson carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Patterson Companies has an estimated long-term growth rate of 9.2%. PDCO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 4.52%.
Patterson Companies’ shares have risen 19.1% year to date compared with the industry’s 16.4% growth.
West Pharmaceutical Services has an estimated earnings growth rate of 4.6% over the next five year. The company’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 12.47%.
WST’s shares haverisen 70% year to date compared with the industry’s 16.4% growth.
McKesson has an estimated long-term growth rate of 10.7%. The company’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 8.1%.
MCK’s shares have rallied 14.2% year to date compared with the industry’s 16.48% growth.
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