San Diego-based NuVasive, which makes spinal surgery implants, said 3rd-quarter sales will be about $147 million, 4.8% below the roughly $154.4 million the company expected to post.
Investors reacted swiftly to the news, slashing more than 20% from NUVA’s share price in after-hours trading. NUVA shares opened today at $14.97, down 33.8%, and were trading at $15.25 as of about 12:45 this afternoon.
"We experienced an unexpected sequential decline in the third quarter due to unusually high account churn related primarily to the growth of surgeon participation in physician-owned distributorships and to increasingly aggressive competitive tactics," CEO Alex Lukianov said in prepared remarks. "As well, we heard from many surgeon customers of increased delays and denials from insurance payers. We believe our ability to take market share with innovative procedural solutions and services remains strong."
NuVasive will issue revised guidance when it releases its 3rd-quarter numbers, scheduled for Oct. 29, Lukianov said.
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