Nevro Corp. (NYSE:NVRO) Q3 2023 Earnings Call Transcript

Rod MacLeod: Yes. Just one thing to reiterate is that, we are still early in the changes on the commercial side of the business. We do have to give them a little bit of time to implement and give them a little bit of time and room to maneuver the way. They think it is the right to set us up for 2024 and beyond.

Kevin Thornal: Yes. I will add just to add into that, Rod. We had two of our largest training classes ever come through here in Redwood City, over the last quarter. So, those reps are getting out in the field, coming back in for additional training, and then getting back out in the field to, being able to get out there and do what salespeople do best.

Brad Bowers : And then just one quick follow-up here. You now have, I guess, all of the competitors in the PDN market, with the final one getting their approval recently. So just wanted to give you the opportunity, now we don’t have to worry about what is going to happen once those competitors are in the market. So how the conversations are going with the PDN sales force and how Nevro is continuing to win those conversations? And thanks again for taking the questions.

Kevin Thornal: We are still the only paresthesia-free SCS player on the market, the only high frequency on the market. And as we have said all along, and it resonates with the endocrinologists that refer patients in to our implanting physicians, and it makes sense to our implanting physicians that you would desire a paresthesia-free option for patients that are already experiencing numbness in their feet and their legs. Why would you want to add even more to that? So the whole goal is to get up is to get people pain free and up and ambulating, so they can walk around. And when they walk around, obviously, then they are going to have better results and lowering their A1C and their body weight, which we have now data showing that the implanted, patients with SES 10 kilohertz high frequency do reduce weight in A1C.

And that is because, obviously, we don’t know for sure the method of action, but we do know those patients get up and walk around, and we do have clinical results showing they do better. No one else has that kind of clinical data, and no one else can do paresthesia-free high frequency. So, we still feel very optimistic that we are going to continue to win there. Now, I will also say that in any type of medical devices that I have been in for, well over 20 years, all companies do well when rising tides happen for all. So I do think that having more players in the market to help educate and to have increased the awareness is good for patients and good for implanting physicians as well.

Operator: The next question is from William Plovanic with Canaccord Genuity.

Unidentified Analyst: This is [indiscernible] on for Bill Plovanic. Congrats on the quarter. Just wondering more broadly to what extent you are seeing increased competition and share gains or losses from the private competitors in the market?

Kevin Thornal: Yes. We are really not seeing that much. We do look at a couple of the models that are out there. We do see some of the expected results that are there. We obviously still are the only high frequency player in the market. I do believe that they are probably going after some of the other low frequency competitors that are out there, and we continue on our path of explaining and using the clinical studies that we have to show the superiority of the paresthesia-free high frequency SCS. So, we are not thinking that we are losing share to any of those smaller players. And obviously, it doesn’t mean we are not losing a few cases here or there, but we believe we held share in the quarter.

Operator: The next question is from Adam Maeder with Piper Sandler.