Nevro :FDA Oks Manufacturing Operations In Costa Rica For Spinal Cord Stimulation Systems Production

(RTTNews) - Nevro Corp. (NVRO) said that the U.S. Food and Drug Administration has approved its manufacturing operations in Costa Rica for the production of its proprietary spinal cord stimulation systems for the treatment of chronic pain, including its HFX product platform.

The company anticipates it will begin shipping product by the end of October, with a gradual ramp-up of production for the balance of the year and throughout 2023. Beginning in the second half of 2023 the company expects to see gross margin expansion, increasing over the subsequent three to five years from the high 60s% to the mid-70s%.

Nevro stated that it will have invested about $21 million in capital and operating expense by the end of 2022 to support future growth initiatives at this facility to ensure greater controls and efficiency in the manufacture of products to patients around the world. The company currently employs about 100 employees at the 41,000-square-foot space.