Company Overview - Alcon (ALC) shares increased by 6% to $96.80 in the last trading session, following a higher-than-average trading volume, contrasting with a 2.1% loss over the past four weeks [1][2] M&A Activity - Alcon's stock price surge is attributed to optimism regarding its aggressive mergers and acquisitions strategy, including the acquisition of a majority interest in Aurion Biotech, Inc., which focuses on advanced cell therapies for eye diseases [2] - The company also entered a definitive merger agreement with LENSAR, Inc. to acquire the ALLY Robotic Cataract Laser Treatment System and associated technologies [2] Earnings Expectations - Alcon is projected to report quarterly earnings of $0.77 per share, reflecting a year-over-year decline of 1.3%, with expected revenues of $2.51 billion, an increase of 2.6% from the previous year [3] - The consensus EPS estimate has been revised down by 7.4% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] Industry Context - Alcon is part of the Zacks Medical - Instruments industry, where another company, Nevro (NVRO), experienced a slight decline of 0.2% to $5.84, with a 2.1% return over the past month [4] - Nevro's consensus EPS estimate has decreased by 10.2% over the past month to -$0.91, representing a 30% decline from the previous year's report [5]

Market Overview - The global SCS market in 2019 was estimated at approximately $2.5 billion, with the United States comprising about 80% of this market[170]. - Worldwide revenue increased from $23.5 million for the year ended December 31, 2013, to $390.3 million for the year ended December 31, 2019, driven primarily by sales of Senza products in the U.S.[187]. - The company does not expect to continue historic rates of revenue growth in the U.S. or worldwide due to various market pressures and reimbursement constraints[187]. Competition and Market Challenges - The company faces competition from established players with strong relationships in the market, which may hinder its ability to gain market share[162]. - The company faces significant competition from established players like Medtronic, Boston Scientific, and Abbott Laboratories, which have launched new products and systems in the neuromodulation market[175]. - The competitive landscape includes emerging companies that may develop more effective or less expensive products, posing a risk to the company's market position[176]. - The company’s ability to secure effective patent protection is critical, as failure to do so may allow competitors to market similar products without incurring significant development costs[167]. - The company anticipates that competitors may conduct clinical trials that could yield results comparable to or better than its own pivotal U.S. trial[172]. Product Development and Clinical Trials - The company is conducting clinical trials for the Senza device to explore HF10 therapy for chronic pain indications, including chronic upper limb and neck pain, painful neuropathies, and non-surgical refractory back pain[224]. - Clinical trials are necessary for PMA applications and may require large subject enrollments, which can be challenging to maintain[224]. - The company may need to conduct additional clinical studies to support new product approvals, which can be time-consuming and costly[224]. Financial Performance and Risks - The company incurred net losses of $103.7 million, $49.2 million, and $36.7 million for the years ended December 31, 2019, 2018, and 2017, respectively, with an accumulated deficit of $409.8 million as of December 31, 2019[178]. - The gross profit from Senza products is currently insufficient to cover operating expenses, necessitating a reduction in per-unit manufacturing costs to achieve profitability[179]. - The company may face substantial costs related to patent litigation, which could impact financial performance and operational focus[259]. - Quarterly revenue and operating results may fluctuate significantly, influenced by various factors including commercialization costs and market acceptance of products[259]. Regulatory Compliance and Legal Risks - The company is subject to extensive FDA regulations, and failure to maintain FDA approval could significantly impact its ability to market and sell Senza[190][192]. - The company is involved in ongoing litigation to protect its intellectual property, which could divert resources and impact growth[165]. - The company is involved in ongoing litigation with Boston Scientific regarding patent infringement, which could divert resources and impact commercialization efforts[233]. - Regulatory compliance failures could lead to severe consequences, including product recalls and loss of regulatory approvals, adversely affecting the company's business[273]. Intellectual Property and Patent Issues - The company may need to enter cross-license agreements with competitors, potentially compromising the value of its intellectual property[174]. - Competitors like Medtronic, Boston Scientific, and Abbott Laboratories have substantial patent portfolios that may hinder the company's ability to market its products[234]. - The company may incur significant legal expenses and damages if found infringing on third-party intellectual property rights, which could strain financial resources[241]. - The company faces challenges in protecting its intellectual property rights globally, as patent laws and enforcement vary significantly across jurisdictions[247]. Supply Chain and Manufacturing - The company is dependent on third-party suppliers, some of which are sole-source, making it vulnerable to supply shortages and price fluctuations[205]. - The company must improve manufacturing efficiency and reduce costs to achieve profitability, which is dependent on increased sales volume[179]. - The company has experienced inventory write-downs due to products not meeting requirements, which could adversely affect earnings and cash flows[262]. International Operations and Currency Risks - As of December 31, 2019, the company sells Senza directly in 10 countries and through distributors in 7 additional countries, exposing it to international operating risks[198]. - The company faces risks in foreign jurisdictions, including difficulties in enforcing intellectual property rights and pricing pressures[200]. - The company faces risks associated with currency fluctuations, particularly with revenues and expenses denominated in Euros, British Pounds, and Australian Dollars, which could materially impact reported results[266]. Management and Human Resources - Retaining key executives and recruiting new employees is critical for the company's future success, as turnover could adversely affect operations and financial results[228]. - The company must manage anticipated growth effectively to avoid adverse effects on its development and commercialization goals[215]. Future Outlook and Funding - Future funding may be necessary to support commercialization and R&D efforts, with potential challenges in raising funds on favorable terms[255]. - The company anticipates substantial cash expenditures for commercialization efforts, including the growth of its sales force and regulatory approvals for its HF10 therapy[254]. Stock and Investor Relations - The company is subject to significant volatility in its stock price, which may affect the value of its convertible notes and overall market perception[313]. - The company does not currently intend to pay dividends on its common stock for the foreseeable future, relying on stock price appreciation for shareholder returns[337].

Revenue and Growth - The company reported total revenue of $387.3 million for the year ended December 31, 2018, up from $326.7 million in 2017, indicating a growth of approximately 18.5% year-over-year[125]. - U.S. sales revenue for Q3 2019 was $84.2 million, a 6.5% increase compared to $79.6 million in Q3 2018[124]. - Revenue increased to $100.2 million for the three months ended September 30, 2019, up 5% from $95.6 million in the same period of 2018[153]. - U.S. revenue for the same period was $84.2 million, a 6% increase from $79.6 million in 2018, driven by growth in SCS procedures[153]. - Revenue for the nine months ended September 30, 2019, decreased to $275.9 million, down 1% from $279.3 million in 2018[162]. Expenses and Financial Performance - Total operating expenses for the three months ended September 30, 2019, were $85.9 million, representing 86% of revenue, up from 80% in 2018[156]. - R&D expenses increased to $13.0 million, a 4% rise from $12.5 million in 2018, primarily due to higher personnel and clinical expenses[156]. - SG&A expenses rose to $72.9 million, a 14% increase from $64.0 million in 2018, mainly due to increased personnel costs[157]. - Total operating expenses for the nine months were $271.9 million, representing 99% of revenue, up from 82% in 2018[164]. - SG&A expenses increased to $229.8 million for the nine months ended September 30, 2019, up 18% from $195.3 million in the same period of 2018, primarily due to increased personnel costs[165]. - Gross profit rose to $69.9 million, a 4% increase from $67.2 million in 2018, with a steady gross margin of 70%[155]. - Gross margin decreased to 68% for the nine months ended September 30, 2019, down from 71% in 2018, impacted by inventory write-downs and reduced average selling prices[163]. Investments and Development - The company plans to continue investments in the development of the Senza product platform and HF10 therapy, alongside ongoing R&D programs and clinical trials[171]. - The company has made significant investments in building its U.S. commercial infrastructure and sales force, which is critical for achieving expected growth rates[133]. Market and Competition - The global spinal cord stimulation (SCS) market is estimated to be approximately $2.4 billion, with the company aiming to expand its market share by treating both back and leg pain without paresthesia[122]. - The company faces significant competition in the neuromodulation market from established players like Medtronic, Boston Scientific, and Abbott Laboratories[173]. - The company experienced a slowdown in revenue growth in international markets, with expectations of minimal growth due to reimbursement constraints and market pressures[135]. Financial Position and Cash Flow - The company has accumulated a deficit of $396.0 million as of September 30, 2019, primarily due to investments in product development and commercialization efforts[125]. - Net cash used in operating activities was $36.8 million for the nine months ended September 30, 2019, compared to $10.7 million in the same period of 2018, driven by net losses of $89.9 million[175]. - Cash and cash equivalents, along with short-term investments, totaled $232.8 million as of September 30, 2019, expected to fund operations for at least the next 12 months[170]. - Cash provided by financing activities was $10.7 million for the nine months ended September 30, 2019, primarily from the issuance of common stock to employees[177]. Supply Chain and Inventory - The company relies on third-party suppliers for all components of its products, which poses risks related to supply chain management and inventory obsolescence[126]. - The company has recorded an excess raw materials charge of $3.6 million for the nine months ended September 30, 2019, due to inventory management challenges[131]. - Cost of revenue for the nine months increased to $88.8 million, an 8% rise from $82.2 million in 2018, largely due to inventory write-downs[163]. Financing and Debt - The company may seek additional funding through equity or debt financings to support commercialization and R&D activities[172]. - The company issued $172.5 million in aggregate principal amount of 1.75% convertible senior notes due 2021[190]. - The fair value of the convertible senior notes is influenced by interest rate risk and market risk due to the convertible feature[190]. - The fair value generally increases as the common stock price increases and decreases as the common stock price declines[190]. - Changes in interest and market value affect the fair value of the convertible senior notes but do not impact financial position, cash flows, or results of operations[190]. - The convertible senior notes are carried at face value less unamortized discount on the balance sheet[190]. - Fair value is presented for required disclosure purposes only[190].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-36715 Nevro Corp. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 56-2568057 (I.R.S ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-36715 Nevro Corp. (Exact name of registrant as specified in its charter) Delaware 56-2568057 (State or other jurisdiction of incorporation or organization) (I.R. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the year ended December 31, 2018 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-36715 NEVRO CORP. (Exact name of registrant as specified in its charter) Delaware 56-2568057 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identificat ...