Grossman informed the board that he plans to retire from his CEO and president duties in 2023. He intends to do so following the selection of his successor at the spinal cord stimulation (SCS) technology developer.
Following the CEO succession, Grossman plans to continue to serve as chair of Nevro’s board. The board commenced a targeted search process for a new CEO with assistance from a leading executive search firm.
Grossman has spent nearly 40 years as an executive in the medical device industry.
“I’m extremely proud of the significant progress we have made over the past four years, and I believe now more than ever Nevro is well-positioned for future growth and poised to enter an exciting period of progress,” Grossman said. “With what we believe will be continued recovery in our markets, important new products like the HFX iQ platform, entirely new patient populations such as PDN and NSBP, and the opportunity for attractive operating leverage on future growth as a result of our intense focus on the scalability of our expense structure, the outlook for Nevro is very bright.”
Nevro reports preliminary Q4 results, sets guidance
Redwood City, California-based Nevro expects fourth-quarter revenues to total approximately $113.8 million. That represents an 11% increase compared to the same quarter last year. Approximately $99.8 million in revenues came in through U.S. sales. Analysts expect Nevro to report $112.6 million in sales.
The company attributed the growth to its limited market release for the HFX iQ system. It received FDA approval in October.
It expects full-year sales to total approximately $406.4 million for a 5% increase over 2021.
Nevro projected its 2023 revenues to fall between $445 million and $455 million for a 10%-12% increase year-over-year. That guidance assumes 2023 includes steady recovery with no significant impact from new COVID-19 variants or waves. It also depends upon the virus’ impact on patient willingness to seek elective care, healthcare staffing issues and more.
“I am very pleased with the significant efforts of the Nevro team to serve our customers and patients, and execute on our plans throughout 2022,” said Grossman. “We continued to move our business forward and see encouraging signs of recovery, which we expect to continue throughout 2023.
“I’m very pleased with the building blocks that are now in place for attractive growth and leverage going forward, and we believe the challenges to our market will gradually but steadily improve throughout 2023.”
Shares of NVRO were down more than 5% at $37.54 apiece in morning trading today. MassDevice‘s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose more than 7%.