Nevro releases 2016 first quarter financial results

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Nevro Surgical Leads_main
Nevro Senza leads, which received US FDA approval in April 2016

Nevro has reported financial results for the three months ending March 31, 2016.

This follows the US Food and Drug Administration (FDA) approval for surgical leads for the company’s Senza spinal cord stimulation system.

Rami Elghandour, president of Nevro, says, “We will…broaden access to HF10 therapy through continued sales force expansion as well as the launch of our surgical lead in the fourth quarter of this year.”

First quarter full financial results:

Revenue for the three months ended March 31, 2016 was US$41.7 million versus US$9.7 million during the same period of the prior year, representing 331% growth as reported. US revenue for the three months ended March 31, 2016 was US$29.5 million in the third full quarter of US commercial availability. International revenue was US$12.2 million, representing growth of 31% in constant currency and 26% on an as-reported basis.

Gross profit for the three months ended March 31, 2016 was US$26 million, representing a 62% gross margin, up from US$5.8 million, representing a 60% gross margin, in the same period of the prior year.

Operating expenses for the three months ended March 31, 2016 were US$35 million compared to US$18.1 million in the same period of the prior year, representing an increase of 93%. According to a company release, this increase was driven primarily by increased headcount and related personnel costs.

Loss from operations for the first quarter of 2016 was US$9 million compared to US$12.3 million for the same period of the prior year.