Nevro (NVRO.NYSE) announced their intentions to establish global manufacturing operations in Costa Rica to both invest in and support the company’s growth trajectory and expectations.
Their first deal includes signing a 10-year lease on a 35,000 square foot manufacturing facility in Costa Rica. Their total capital expenditures will be roughly $11 million from 2020-2023 and will include an extra $10 million in implementation costs over that time. The company anticipates the facility to receive approval by 2022, and the company believes that cost efficiency and improvements to their gross margin will come shortly after.
“Nevro has been successful through its early years with outsourced manufacturing and highly supportive supply chain partners. As part of our growth plans moving forward, Nevro is establishing insourced global manufacturing for its pipeline of future products to ensure that we have the most efficient cost structure and flexible capacity, while maintaining the highest level of quality control as we scale,” said D. Keith Grossman, chairman, CEO and president of Nevro.
Operating out of Redwood City, California, Nevro is a global medical device company that provides evidence-based scientific solutions to improve the quality of life for patients suffering from debilitating chronic pain. They’ve previous developed a spinal cord stimulation system called Senza, which is an evidence-based neuromodulation platform that doesn’t use drugs in the treatment of chronic pain. The therapy, called HF10 therapy, has been demonstrated to either reduce or eliminate the necessity of opioids in over 65% of cases across six peer-reviewed clinical studies.