NVRO Stock May Gain on the FDA Approval of Its HFX AdaptivAI Platform
Nevro NVRO recently announced the FDA clearance and limited market release of HFX iQ with HFX AdaptivAI, a responsive, personalized pain management platform powering the HFX iQ spinal cord stimulation (SCS) system.
HFX AdaptivAI uses artificial intelligence (AI) to provide responsive, individualized pain treatment in real-time by combining insights from over 100,000 patients and over 100 million data points.
Likely Trend of NVRO Stock Following the News
Following the announcement, shares of the company closed nearly flat at $5.74 on Tuesday.
Nevro continues to cater to a lucrative SCS therapies market. Nevro has developed and commercialized its HFX SCS platform, which includes the Senza SCS system, with the Senza HFX iQ platform being its latest addition to the Senza family of products. Accordingly, we anticipate the stock to gain on investors’ optimism around this latest platform addition to its HFX iQ system.
Meanwhile, NVRO currently has a market capitalization of $213.26 million. In the last reported quarter, NVRO delivered an earnings surprise of 31.75%.
More on the NVRO’s HFX AdaptivAI & Its Features
Chronic pain is a dynamic, biopsychosocial human condition unique to each individual. HFX AdaptivAI delivers personalized pain relief, utilizing AI and leveraging millions of data points, along with 10 years of innovation and patient care.
Per Nevro, this new solution is a major milestone, and it demonstrates the company’s dedication to freeing patients from the burden of chronic pain through evidence-based therapies that transform patients' lives. HFX AdaptivAI puts patients in control of their pain relief while, at the same time, providing physicians the ability to monitor their patient's pain journey.
HFX AdaptivAI offers advanced proactive remote monitoring. With the launch of the HFX AdaptivAI, physicians will have the ability to remotely monitor each patient’s pain journey in real-time through Nevro's healthcare provider portal.
The platform is also likely to provide enhanced real-time insights as the technology gathers real-time quality-of-life metrics and device data, enabling more impactful patient-clinician interactions. This real-time information helps patients report pain relief in significantly less time than with traditional programming.
These advanced features are likely to drive the adoption of the device in the future. However, a clearer picture is likely to be available after the fourth quarter. The company may discuss its launch strategies for the system on its third-quarter earnings call.
Favorable Industry Prospects for NVRO
Per a report by Allied Market Research, the global SCS market is estimated to be $2.1 billion in 2022 and is expected to reach $4.8 billion by 2032, witnessing a CAGR of 8.4%.
The major factors driving the spinal cord stimulation devices market growth are an increase in the prevalence of chronic pain, the surge in aging population, technological advancements, and a rise in awareness about spinal cord stimulation devices. Technological advancements in spinal cord stimulation devices are driving growth of the market. New devices are being developed with advanced features such as wireless connectivity, longer battery life and improved programming.
NVRO’s Price Performance
For the past six months, NVRO shares have lost 57.7% against the industry’s rise of 2.2%. The S&P 500 increased 10.2% in the same time frame.
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NVRO’s Zacks Rank & Other Stocks to Consider
NVRO carries a Zacks Rank #2 (Buy) at present.
Some other top-ranked stocks in the broader medical space are Universal Health Service UHS, Quest Diagnostics DGX and ABM Industries ABM. While Universal Health Service sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and ABM Industries carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Health Service has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.
Universal Health Service has gained 41.1% so far this year compared with the industry's 34.8% rise.
Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.
Quest Diagnostics shares have gained 3.7% so far this year compared with the industry’s 10.2% rise.
ABM Industries’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.34%.
ABM's shares have risen 24.1% so far this year compared with the industry’s 11.9% growth.
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