NVTR

Nuvectra Corp

Healthcare


Presented:09/20/2016
Price:$6.97
Cap:$0.07B
Current Price:$0.02
Cap:$0.00B

Presented

Date09/20/2016
Price$6.97
Market Cap$0.07B
Ent Value$0.01B
P/E RatioN/A
Book Value$10.69
Div Yield0%
Shares O/S10.27M
Ave Daily Vol86,112
Short IntN/A

Current

Price$0.02
Market Cap$0.00B
Nuvectra Corp. engages in the development and commercialization of neurostimulation technology platform for treatment of various disorders through stimulation of tissues associated with the nervous systems. It also supports neurological indications such as sacral nerve stimulation, and deep brain stimulation. Its technology, Algovita Spinal Cord Stimulation System, treats chronic pain of the trunk and limbs. The company was founded on November 14, 2008 and is headquartered in Plano, TX.

Publicly traded companies mentioned herein: Boston Scientific Corporation (BSX), Greatbatch Inc (GB), Medtronic plc (MDT), Nevro Corp. (NVRO), Nuvectra Corp (NVTR), St. Jude Medical Inc (STJ)

Highlights

Nuvectra’s (NVTR) neurostimulation business is just now getting to the point where the presenter believes it may see a major positive inflection and the overall risk/ reward setup appears to be skewed to the upside. He is long the stock and sees the $6.75 - $7.00 range as an attractive entry point There are roughly 100 million Americans with chronic pain problems, and this is the company’s largest market opportunity. The most common “solution” is still opioids (narcotic pain medicine). Thus, he expects to see relatively consistent, roughly 10% industry growth over the next few years. Turning to neurostimulation for pain reduction has been an alternative “forever”; however, NVTR’s Algovita Spinal Cord Stimulation System is differentiated and should be able to take share from the incumbents: Medtronic, St. Jude and Boston Scientific, among others. If his assessment of the setup and outlook are accurate, NVTR’s stock could rise rapidly over the next 12-24 months as its top line grows towards the $150 million - $200 million range (over 3 - 4 years). Its market cap is presently ~$70 million, and medical device companies tend to trade at 4x - 8x sales.

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