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| Senza spinal cord stimulation system--Screenshot courtesy of Nevro |
Chronic pain device player Nevro ($NVRO) was up 10% in early trading as it reported preliminary 2015 figures and guided to an ambitious 2016. The medical device company said it expects revenue in the range of $145 million to $155 million for 2016--that could be enough to tip it into profitability.
This is Nevro's second full quarter since it launched its Senza spinal cord stimulation (SCS) system in the U.S. The neuromodulation implant is expected to be more effective and cause fewer side effects than some of the current chronic pain implant options. The FDA approved Senza in May to treat chronic pain in the back and legs.
The company has already made huge strides since it went public in November 2014 with an $18 share price. It's currently trading at above $70 a share with a roughly $2 billion market cap.
Nevro landed a coveted spot in the first day of the J.P. Morgan Healthcare Conference in San Francisco on Jan. 11 and likely will offer further details during that presentation.
The Redwood City, CA-based company also raised its 2015 revenue guidance to between $69.1 million and $69.6 million from the previously stated range of $59.5 million to $61.5 million. That includes fourth quarter revenue of $13.1 million to $13.3 million.
During the first 9 months of 2015, Nevro had an operating loss of about $50 million. It's not quite clear when its rapid revenue ramp will be sufficient to offset the corresponding cost growth for commercial infrastructure.
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| Nevro CEO Michael DeMane |
"Our preliminary financial results for the fourth quarter of 2015 reflect early success in our U.S. launch and continued adoption of HF10 therapy internationally," Nevro chairman and CEO Michael DeMane said in a statement.
He continued, "We ended the year on plan with 100 trained sales representatives in the U.S. Our guidance for 2016 reflects continued momentum, and we look forward to providing additional detail when we release our final 2015 operating and financial results in late February."
- here is the announcement